The Importance of Underinsured Motorist Coverage
Many people believe that they have “full coverage” when in reality, they don’t. In Arizona, the minimum liability coverage for an automobile policy is called 25/50. This means that if you are in an accident that is not your fault and the at fault driver has the minimum coverage, The most you can receive is $25,000.00, no matter how badly you were injured. Very often, this amount will not even cover your medical expenses.
If you have underinsured motorist coverage, your own policy can step in and supplement the at fault drivers’ insurance. For example, if you have underinsured coverage of $25,000.00 and the at fault driver has minimum coverage, you actually have his/her $25,000.00 plus your own $25,000.00. In other words, you have $50,000.00 available to compensate you for your injuries. Underinsured motorist coverage is relatively inexpensive, and it is a great safety net to help you protect yourself in case of an accident.