What if the Other Driver Does Not Have Any or Enough Insurance?
As we just talked about a little in the last chapter, if the other driver does not have any or enough insurance, then you should have coverage available under your own policy. The coverage is called UM uninsured motorist. If the other driver has no insurance, and UIM underinsured motorist if the other driver did not have enough insurance coverage to pay for your damages. For example, if the other driver only has $20,000 in insurance coverage, but you have $100,000 in you I am coverage, then if your damages are $100,000 your insurance would pay the additional 80,000. If your damages are $150,000 your total recovery would be limited to 120,000 because that is all the insurance coverage that is available. Keep in mind that there are special requirements for you to receive compensation under your UM and UIM coverage. For example, if you settle with the other drivers insurance company, without the approval from your own insurance company, your coverage may be denied. If your damages are more than the other drivers insurance coverage, it's a very good idea to consult with a qualified personal injury attorney as you could make a costly mistake and end up with no additional compensation despite paying for the insurance coverage.