The Importance of Underinsured and Uninsured Motorist Coverage

When you are in a car crash in Oregon, you expect that both people involved will have enough car insurance to cover any damages to you or to your car. That is not always the case. Many people opt to carry only the state minimum required for insurance, and sometimes they may not be insured at all. After your accident, you also expect to know who hit you – i.e. you expect that they will give their identification and insurance information freely. However, in a hit-and-run case, the driver may simply flee the scene of the accident. In situations like these, you may need to seek compensation from your own auto insurance.

In order to ensure that you are can pay for any damages in an accident, when the other driver does not have enough insurance to cover your damages, you should pay for Underinsured Motorist (UIM) coverage. UIM covers you if you get hit by someone who is underinsured – someone whose insurance covers less than the damage they actually caused. It is important to get more than the required amount of UIM coverage because you never know when an accident will occur. Underinsured motorist coverage covers the difference between the amount the other driver’s insurance will pay you, and the medical and auto repair bills you incur.

Your automobile insurance should include UIM coverage. If you are hit by someone who does not have enough insurance to compensate you, your UIM coverage is supposed to step in and make up for the difference. Our Portland car accident attorneys recommend that you have at least $250,000 of UIM coverage per person, and $500,000 per accident. This is known as 250/500 coverage. This coverage will protect you and your family in case you are hit by someone with inadequate (or no) insurance.

For more information on how much auto insurance you should buy, watch the below video: