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Difference between Uninsured and Underinsured Coverage for Pennsylvania Drivers

In an ideal world, every motorist should have some form of auto insurance coverage before getting on the road. However, in Pennsylvania alone, most of the accidents on the road involves drivers who are either uninsured or under insured. Interestingly, these drivers with inadequate or no auto insurance are most likely to drive rickety cars and indulge in poor driving behavior. Under Pennsylvania auto car insurance requirements, it becomes necessary for smart road users to get coverage for uninsured and under insured motorists influenced accidents or incidents.

Those drivers who ply the road without any form of insurance coverage are referred to as uninsured motorist while those who only have the minimum requirements for car insurance as allowed by the state of Pennsylvania are referred to as under insured motorist by PA auto insurance companies. While it may be surprising to find that there are drivers who will drive on the road without any insurance or proper insurance coverage, it is unfortunately a habit practiced by many

Uninsured Motorist Coverage

The aim of a person taking an uninsured coverage is to protect against any bodily harm or injury that may occur because of an accident with an uninsured driver. In Pennsylvania, just like in any other state, there are reckless drivers who drive on the road without any form of insurance coverage. If someone with uninsured motorist coverage is unfortunate enough to be injured by such an uninsured driver, they become eligible to receive compensation from their insurance company for the harm caused them by the uninsured driver.

Underinsured Motorist Coverage

Under Pennsylvanian law, vehicle owners are supposed to get liability coverage that protects them against damage they cause to third parties. This type of coverage is also known as third party coverage. Sometimes vehicle owners will only get the minimum insurance coverage as required by the state. This is usually not enough to cover damages to persons or property that may occur during an accident. As such most vehicles owners are advised to get an under insured motorist coverage to cover for such unforeseen circumstances although in Pennsylvania, this type of insurance coverage is optional.

In most states, if a driver who is under insured was to cause injury to another with an under insured insurance coverage, the injured persons insurance company will cover remaining expenses for the insured person or victim after it’s been ascertain that the under insured persons insurance coverage cannot offer full compensation. However, in Pennsylvania, this type of coverage is known as excess coverage in that the injured person with an under insured motorist coverage is qualified for compensation which is worth the insurance coverage of the under insured person plus the amount provided by the under insured motorist coverage. It is necessary for vehicle owners to understand Pennsylvania auto insurance requirements when seeking insurance coverage for a vehicle.

What Vehicle owners should know about Uninsured and Underinsured motorist coverage?

In Pennsylvania, it is not an obligation for vehicle owners to take out this type of insurance coverage. Nevertheless, all insurance providers are expected to have this in their insurance packages whether customers request for this or not. If a vehicle owner chooses not to take on uninsured or underinsured motorist coverage for their vehicle, this is perfectly all right but they’d need to sign a waiver on which they acknowledge the fact that these types of insurance were proposed by the insurance company but them the customer chose to reject it.

Why is it important to get Uninsured or Underinsured motorist coverage?

While it is easy for vehicle owners to reject quickly this type of coverage, they only realize the importance when they get involved in an accident with another vehicle that has no insurance cover or that is underinsured. Sometimes the reason why most people will avoid taking on such coverage is fear for added cost. However, before deciding to ignore such coverage because of the cost involved, it is important to weigh the odds and cleverly calculate the real cost of not having such coverage.

This coverage can be very important for someone with an expensive brand new car. If you think of the cost of your car and the implications of it getting into an accident, then you will want to consider taking on insurance coverage that will protect you against reckless drivers who are either uninsured or underinsured. Even if you are the most careful driver in the world, there is no guarantee that you would not get involved in an accident.

Apart from damage to your car, more important is bodily harm that may be caused on you due to some other person’s unlawful act. An accident could cause you severe damage that you may need to be compensated. However, this would not happen if you didn’t get the right insurance protection when it comes to accidents caused by the third parties.

That said, when involved in an accident, the best way to ensure you have a hitch free claim process is to report the incident to the relevant authorities as soon as the accident happens. At the time of choosing uninsured or underinsured motorist coverage, you will be asked to set a limit, which is the amount you will expect from your insurance company if you had to use the coverage. You can choose to use a split limit that comprises two payouts. One is the maximum payout that can be paid per person while the other represents the maximum total payout. Alternatively, the opportunity is to have just one unit comprising of one single payout.

To conclude, uninsured motorist coverage is designed to offer coverage for people who are injured in an accident that involves the driver of an uninsured vehicle as the defendant. While underinsured motorist coverage is designed to offer additional coverage in a case, where the defendant has insurance but the insurance is not enough to offer adequate compensation for the injuries caused to the victim or plaintiff. The under insured or uninsured insurance claim is usually made to the insurance company of the plaintiff.