Auto Insurance is often something that we just purchase without understanding what we are actually purchasing. Most of the time, we get by with what we have, but unfortunately, accidents happen and then we realize that we failed to protect ourselves.
In both Pennsylvania and New Jersey, drivers are only required to carry liability insurance on their vehicles in the amount of $15,000 per person and $30,000 per accident. Therefore, if you or a family member is severely injured in an automobile accident, there may only be $15,000 available to collect for your injuries.
How can you protect yourself? You can purchase underinsured and uninsured coverage under your automobile policy. Underinsured motorist coverage provides you and your family with additional policy to collect against in the event the policy of the person who caused the accident (the tortfeasor) is not sufficient to compensate you for your injuries. Uninsured motorist coverage provides a policy in the event that the tortfeasor does not have insurance.
(The application of underinsured motorist coverage differs from New Jersey to Pennsylvania, so be sure to ask questions when updating or purchasing your policy.)