Part 4 of 4-part series, prepared by Peter L. Johnston, Esq., Philadelphia Car Accident Attorney
Another important factor to consider in purchasing a car insurance policy is whether or not to purchase underinsured or uninsured coverage. Declining to purchase this coverage does reduce the cost of your premium. However, doing so also precludes you from being able to obtain compensation for your injuries or losses above and beyond the other motorist’s policy limits or at all in the event that said motorist was uninsured. For example, you may suffer a crippling injury as a result of an automobile accident. If the other driver’s policy limits are $15,000, that will likely be all that you can collect from that party (unless said party has significant assets).
If you have underinsured coverage, after collecting from the other party, you can then make a claim against your own policy’s underinsured provision to give you adequate compensation for your injuries, over and above that other party’s policy limits. For that reason, personal injury attorneys strongly recommend that you purchase underinsured and uninsured coverage.
Looking forward to your comments and feedback. Stay tuned for our next series.