What is Enhanced Uninsured Motorist Coverage?
With the typical uninsured motorist coverage, you would have to have more uninsured coverage than the at-fault party’s liability coverage in order to get uninsured benefits. With enhanced underinsured motorist coverage, there is no reduction in the amount paid to you by the at-fault party’s insurance. So you could recover from your own enhanced coverage in addition to the amount recoverable under the at-fault party’s insurance.
For example, a driver with $100,000 in uninsured motorist coverage who is injured by a negligent driver with only $30,000 in liability coverage, could only recover $70,000 from their own insurance and $30,000 from the other driver’s insurance for a total of $100,000. With enhanced coverage, a driver could stack the coverage and receive $100,000 from their own insurance, in addition to the $30,000 from the negligent driver’s insurance. Eligibility for these benefits will, of course, be determined by the extent of the injured party’s damages.
Enhanced Uninsured Motorist Coverage is automatic and must be elected in writing on your auto insurance policy. If you do not elect this coverage, you will be left with the regular uninsured motorist coverage previously required. Be a wise consumer and stay on top of this fact when it is time to renew your policy. Insurance companies are not required to advise you that you may purchase enhanced coverage.
Why you should get enhanced coverage
As the law stands now, it is legal for anyone to be driving around with only $30,000 in liability insurance. Given the skyrocketing costs of medical care in this country, that is a ridiculously low amount and may not cover all of your injuries. If you don’t have enough of your own uninsured motorist coverage to make up the difference, then you are going to be out of luck.