In the first blog of our two-part series, we will begin our discussion regarding uninsured motorist coverage and underinsured motorist coverage. Uninsured motorist coverage is an automobile policy option that covers you for property damage and bodily injury caused by another motorist who does not carry car insurance.

Let’s look at an example.

Say you’re badly hurt in an auto accident in Maricopa County and the accident was caused by a negligent driver. Under Arizona law, that negligent driver is responsible for paying for your medical bills, pain and suffering, and lost wages. But what happens if that person doesn’t have any car insurance?

If that’s the case, then you could use the uninsured motorist coverage in your policy (if you have that kind of coverage). So your own car insurance would provide the compensation for your injuries and the expenses incurred.

Underinsured motorist coverage is similar, but it deals with situations where the negligent driver has insurance, but it’s not enough to compensate you for your injuries or damages.
Here’s an example.

Say, for instance, you’re involved in a car accident in Maricopa County and you’re seriously injured. Because of your injuries you require a lot of medical care. The bills rack up and get so high that the at fault driver’s insurance policy no longer covers the amount of the medical expenses, not to mention the wages you are missing out on because you can’t work. In this kind of scenario, you’d access your underinsured motorist coverage in order to make up the difference. Your underinsured motorist coverage can then help pay for your medical expenses, current and future lost wages, and any pain and suffering that you’ve endured.

Please refer to our next blog post to learn more about the major differences between underinsured and uninsured motorist coverage.