Pennsylvania Insurance Law: How to Deal with Underinsured Drivers

Pennsylvania is one of the few states that follow a 'choice no-fault' insurance system, which can have significant implications for drivers involved in accidents, especially when it comes to underinsured drivers. Understanding Pennsylvania insurance law is critical for protecting your rights and ensuring you receive the compensation you deserve.

Underinsured motorists (UIM) are drivers who have insurance but whose coverage is insufficient to cover damages or medical expenses resulting from an accident. In Pennsylvania, if you're involved in an accident with an underinsured driver, your ability to recover costs depends largely on your own insurance policy and the provisions you've selected.

Here are some key steps to consider if you find yourself in a situation involving an underinsured driver in Pennsylvania:

1. Verify Insurance Coverage

After an accident, the first step is to check the insurance details of the other party involved. If they are underinsured, their insurance may not cover all of your damages. It’s crucial to collect all related information, including policy numbers and the insurance company name.

2. Understand Your Insurance Policy

In Pennsylvania, you have the option to purchase underinsured motorist coverage as part of your auto insurance policy. This coverage is essential as it helps protect you when dealing with underinsured drivers. Review your policy to see if you have UIM coverage, and if not, consider adding it to safeguard against potential losses.

3. File a Claim with Your Insurer

If you are involved in an accident with an underinsured driver, you can file a claim with your own insurance company under your UIM coverage. Make sure to provide all necessary documentation, including accident reports, medical expenses, and a record of damages incurred.

4. Document Everything

Documentation is key when dealing with insurance claims. Keep a detailed record of the accident, including photographs, witness statements, medical treatment records, and any communication with insurance companies. This documentation will bolster your case if you need to prove your damages.

5. Know the Statute of Limitations

In Pennsylvania, the statute of limitations for filing a personal injury claim is generally two years from the date of the accident. It’s crucial to act swiftly and consult with an attorney specializing in insurance and personal injury claims to ensure you don’t miss this deadline.

6. Consult with an Attorney

If you are facing difficulties negotiating with the underinsured driver’s insurance company or your own, consider consulting with an experienced attorney. A legal professional can help you navigate Pennsylvania’s insurance laws and ensure your rights are protected throughout the process.

7. Consider Arbitration or Litigation

If negotiations fail to yield a satisfactory settlement, you may have to consider arbitration or filing a lawsuit against the underinsured driver. Pennsylvania law allows you to pursue legal action for compensation beyond what the at-fault driver's insurance can cover, utilizing your UIM coverage to fill the gaps.

Dealing with underinsured drivers can be a complex process, but understanding Pennsylvania insurance law and having the right coverage can provide peace of mind. Take proactive steps to safeguard your interests by staying informed and adequately covered.

In conclusion, being well-prepared by understanding your insurance options and seeking help when needed can make all the difference if you ever find yourself dealing with an underinsured driver in Pennsylvania.