Why you Need Uninsured and Underinsured Coverage on Your Car

The majority of drivers during their lifetime will get into a vehicle accident that wasn’t their fault.

03/27/2020 By Justin Kallal and Jason Johnson

The majority of drivers during their lifetime will get into a vehicle accident that wasn’t their fault. Unfortunately, some of those drivers get severely injured in those accidents.

As we all are aware, a trip to the emergency room with any type of x-ray, CT scan, or MRI is going to cost at least $10,000. And don’t forget about the $1,500 ambulance ride. What about any post-accident care? Surgery? Drivers in Wyoming are only required to carry $25,000 in liability insurance for each person they injure with a total of $50,000 per crash.

If the driver who hurts you only has the minimum vehicle insurance required by Wyoming law, you may not get adequately compensated for the accident, despite it not being your fault. It all depends on your uninsured/underinsured motorist coverage when you are hit by a driver with a minimal policy and your damages exceed $25,000.

Uninsured and underinsured motorist coverage is oftentimes confusing and misunderstood. You will commonly see 25/50/25 or 50/100/50 on an insurance policy. The third number indicates uninsured and potentially underinsured motor coverage, depending on your carrier. Wyoming has minimum requirements for insurance, which is shown by a 25/50 on the declarations page of an insurance policy.

Underinsured motorist coverage only arises when the other individual’s policy has been exhausted. For example, if the person who hits you only has the minimum policy, then the most that insurance company pays out is $25,000, regardless of how seriously you are injured. This can be even worse when the person who hits you has no insurance at all! However, if you have uninsured and underinsured coverage, then you may still be eligible for benefits pursuant to an uninsured or underinsured claim through your own insurance.

Underinsured and uninsured motorist coverage is inexpensive and it provides great protection for the unknown. If you purchase a $250,000 underinsured policy, it will provide you with an additional $225,000 in potential benefits if you are injured by a person who only has a $25,000 policy.

If the person has no insurance, then your insurance will provide you with $250,000 in added protection. However, underinsured claims and can be tricky and it is best to have an attorney represent you, so that you follow proper procedures and receive all of the benefits that you are entitled too.

We urge all of our clients to protect themselves with uninsured and underinsured coverage. Being stuck without coverage when someone seriously injures you can be a disaster.