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Underinsured Motorist Insurance Coverage

When you purchase a policy of automobile liability insurance in Virginia to cover you and your family members if there is an auto accident, you have the opportunity to purchase some very valuable but often overlooked insurance coverage. This insurance, called underinsured motorist coverage, could provide you and your resident family members with a source of recovery for personal injuries and damages above and beyond what you might receive from the driver who was at fault in the car wreck. For policies issued or delivered in Virginia, if you are involved in a collision with the operator of a motor vehicle who has minimum limits liability coverage ($25,000.00) and you have uninsured motorist insurance greater than that amount (that is, a policy with uninsured motorist coverage of $50,000.00, $100,000.00, or greater), you may be able to recover some or all of that greater amount to satisfy a judgment against the wrongdoer.

Here is an example of what is outlined above: You are in Norfolk, Virginia driving a car which is rear-ended by a negligent driver. You suffer personal injuries and damages which result in a $100,000.00 judgment against the person who hit you. That negligent driver has $25,000.00 liability insurance coverage. You have $100,000.00 uninsured motorist coverage on your auto policy. There are no other claims in the wreck except for yours. As a result, the vehicle which was driven into the rear of your car would be underinsured to the extent of $75,000.00. This underinsured amount is determined by subtracting the liability coverage for the guilty party ($25,000.00) from your $100,000.00 uninsured motorist coverage. In this scenario, your insurance company would be obligated to pay you the "underinsured" amount ($75,000.00).

There are variations from the example cited above. The situations involving underinsured motorist coverage can become very complicated and confusing. These situations are best handled by persons skilled in insurance and personal injury law. Rutter Mills LLP and its staff of attorneys and legal professionals can provide you with the guidance and counseling you need in such cases. Contact us immediately should you or your family members be involved in an auto accident situation which may result in an underinsurance situation.

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