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What is underinsured motorist coverage?

Many Oklahoma residents get into car accidents. Some of those may be caused by drivers whose insurance policies are insufficient to cover the resulting damages. In this situation, it’s crucial to know about underinsured motorist coverage.

What is underinsured motorist coverage?

Underinsured motorist coverage is an option drivers can add to their auto insurance policies. Oklahoma is one of the states that requires insurance companies to offer it, along with uninsured motorist coverage, to all drivers. Although drivers have the option of going with the minimum required rate of $25,000, that’s not always wise because it might not be enough to cover all the damages. As Oklahoma is an at-fault state, it’s likely that the driver responsible for an accident would be unable to pay if a person files a lawsuit against them that ends up being successful. This is what makes it so important to have underinsured motorist coverage.

What does underinsured motorist coverage do?

If a driver causes a car accident that renders another person injured and dealing with property damage and cannot afford to pay, underinsured motorist coverage comes in handy. It kicks in to cover the remaining costs suffered by the victim. It pays for the injured party’s medical expenses and repairs to their vehicle.

Having more than the minimum amount of underinsured motorist coverage is a much better option because it gives a driver the opportunity to protect themselves if they need a financial buffer. It negates the need to go through their health insurance, which is usually insufficient, to cover the costs of their medical bills.

As a driver, the best thing you could do is have a car insurance policy that is all-inclusive. Liability insurance, underinsured and uninsured motorist coverage can protect you in the event that you are involved in a car accident resulting in sizable damages.