It's nice to buy accessories and spare parts for your car. Not only are they necessary for back-up, it can also make the vehicle pleasing to the eyes. However, purchasing an automobile insurance is far more important than additional parts or accessories. Insurance serves as protection and support in case of an injury or loss. Uninsured or underinsured motorist coverage may just be the perfect insurance for your car. But just what makes a motorist uninsured or underinsured?

Uninsured Motorist

Some states require cars to have insurance before having it taken out by the owner, making it unlawful to drive around with an uninsured vehicle. In an ordinary car accident, the liable party has to pay damages as compensation to the one who suffered any loss or injury. This is where his insurance will come into play. But when an insured driver gets into an accident with an uninsured driver or motorist, the injured is forced to file a personal injury lawsuit to win damages.

Uninsured Motorists Coverage will come in handy in the aforementioned situation because the injured can still receive payment for the injuries or even for the property damage if he can prove that the fault of the accident is with the uninsured motorist. The uninsured motorist is someone who don't have insurance, or whose insurance did not meet the state minimum requirements and got denied.

Underinsured Motorist

The underinsured motorist is a person whose insurance is not enough to pay for the damages and injury of the insured victim. The underinsured motorist may also get charged with personal injury. Underinsured motorist coverage is useful on the similar scenario, except that the liable is not completely uninsured. The UIM will help pay for medical costs and lost wages of the victim.

Despite the small difference, uninsured/underinsured drivers are difficult to deal with. There are three types of UIM or UM coverage:

  • UIM Bodily Injury – This is the insurance for the injury inflicted on the driver, other authorized car drivers, and passengers. The payment will include medical expenses and lost wages. It also protects the insured's family members when riding other vehicles.

  • UIM Property Damage – Property Damage covers the policyholder's vehicle in case it gets damaged during the accident. UIM Property Damage does not cover the policyholder if the accident is hit-and-run.

  • Underinsured Motorist Protection – This insurance will pay for the excess amount of damages that cannot be covered by the driver liable for the accident. The amount is determined by subtracting the payment of the other driver's insurance versus the amount of damages the injured sustained.