Northwest Indiana car accident lawyer explains underinsured motorist coverage
You were injured in a car accident and the other driver doesn't have enough insurance to pay for your medical bills or compensate you for your injuries. Do you have any other way to receive compensation for your injuries? You may, if you purchased underinsured motorist coverage or UIM.
UIM is an important coverage for you to have her number of reasons. The most important reason is that a lot of people are underinsured especially in today's economy where most people buy the state minimum insurance. In Indiana, the state minimum for bodily injury coverage is $25,000/$50,000.
This is how UIM coverage works. If you were injured in a car accident and your case is worth $50,000. The guy that caused the accident only has state minimum of $25,000 but you have $50,000 UIM coverage. In our example the guy's insurance company will pay his bodily injury coverage of $25,000 and your insurance company would pay the $25,000 UIM benefit.
In this instance you would be made whole because your case was worth $50,000, however, a lot of cases are worth much more than $50,000. As a general rule, I recommend that my clients purchase at least $100,000 of UIM insurance to protect them if they've been injured in an accident.