As a Missouri car accident attorney, I deal with inadequate insurance policies all the time. Although Missouri requires drivers to have at least $25,000 in coverage and Illinois requires $20,000 in coverage, this doesn’t mean that all people adhere to the rule. I have represented countless people who were, unfortunately, left with their own insurance policy because the negligent driver either fled the scene or didn’t have insurance at all. In this situation, you would make an uninsured motorist claim against your own policy. In Missouri, if you have the minimum limits of $25,000, you automatically have $25,000 of uninsured motorist coverage.
There is also something called underinsurance motorist coverage. This type of coverage kicks in if you are struck and the person who hits you doesn’t have enough insurance to cover your medical bills and other damages. Again, you would go under your own insurance policy to pay yourself for the injuries sustained in the automobile accident only this time, it would be to make up the difference between what you were paid by the negligent driver and what your damages are. Of course, underinsurance coverage does not kick in if your limits are not higher than the negligent driver’s limits. This is because typically, your carrier will receive a set-off – they get a credit for what you are paid by the negligent driver’s carrier.
I tell my clients that it is always a good idea to have more than the legal limits. If you are involved in an automobile accident and it is your fault, you will want adequate coverage to cover any medical bills and damages of the person you hit. If you have inadequate limits, in theory, the injured party could come after your personal assets. Also, if the accident wasn’t your fault and you are injured, you will want to be sure that you have a large enough policy that would provide for sufficient uninsured and underinsured motorist coverage. For example, assume you were injured a car crash and had $30,000 in medical bills, the driver had no insurance, and you only had the Missouri minimum limit of $25,000. The $25,000 is all you would get, most likely, and that wouldn’t even cover your medical bills.
For further information on uninsured and underinsured claims, various coverages, and other various insurance questions, please quick here.