If you operate a motor vehicle in Kentucky, you are already familiar with the state’s minimum requirement for liability insurance coverage. Each state sets minimum liability insurance requirements for drivers within the state. Liability insurance protects others in the event you cause a car accident. Your liability insurance pays the victim’s damages up to the policy limits.
For example, if you carry $50,000 in liability insurance coverage, your insurance company should pay the accident victim’s damages up to $50,000 if you are at fault for the accident. Therefore, if the victim suffered medical expenses, lost wages, and other damages in the amount of $40,000, your insurance company is liable to pay the damages if the victim can prove you caused the collision. However, many drivers only carry minimum liability insurance coverage.
The minimum liability insurance coverage for Kentucky is:
- $25,000 for bodily injury to one person
- $50,000 for bodily injury to more than one person
- $10,000 in property damage coverage
In the example above, if you carry the minimum insurance, the accident victim can only receive $25,000 for his damages. He can try to sue you for the remaining $15,000 in damages, but he may never receive this money.
What happens if you are the accident victim? The same thing! If the driver carries minimum liability insurance coverage, you are probably going to be responsible for the payment of your damages above $25,000. Unfortunately, the damages in a car accident can quickly exceed the minimum coverage. Is there anything you can do to protect yourself as an accident victim?
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage is a type of insurance policy you can purchase in addition to liability insurance. Underinsured motorist coverage protects you in the event you are injured in a motor vehicle accident, and the at-fault driver’s liability insurance does not cover all your damages.
In the above example, let’s assume you are the victim and your damages total $40,000. The driver who caused your accident has minimum coverage. The other driver’s insurance company agrees that he caused the accident and it agrees to pay the policy limit of $25,000 to you for your damages. You still have another $15,000 in damages. If you have underinsured motorist coverage on your auto insurance policy, you can file a claim against your insurance for the remaining $15,000 in damages.
Underinsured motorist coverage protects YOU in a car accident. Because many drivers in Kentucky choose to carry minimum coverage to save money on insurance premiums, we strongly urge you to discuss underinsured motorist coverage with your insurance agent. In most cases, the cost of underinsured motorist coverage is very affordable, especially taking into consideration the protection it provides.
For more information about automobile insurance in Kentucky, you can visit the Kentucky Transportation Cabinet’s Frequently Asked Questions page on its website.
Do You Need Help with An Underinsured Motorist Coverage Claim?
As with any insurance claim, it is in your best interest to discuss your case with an experienced Louisville accident attorney as soon as possible. This is the case whether you are working with the insurance company for the other driver or with your insurance company. A Louisville car accident attorney has your best interest as his top priority. An insurance adjuster, even an adjuster for your insurance company, does not. He is working to limit the insurance company’s liability for your claim.