If you've been injured in a car accident, one of the most important—and often overlooked—factors that can impact your ability to recover compensation is underinsurance coverage. At Goldstein & Handwerker, we've seen too many clients face financial hardship simply because they didn't know about this vital part of their auto insurance policy.

What Is Underinsurance Coverage?

Underinsurance coverage protects you when the other driver doesn't carry enough insurance to fairly compensate you for your injuries. In New York and New Jersey, the minimum required liability coverage for drivers is just $25,000. That means if you're seriously hurt—requiring surgery, long-term treatment, or time away from work—$25,000 may not even come close to covering your losses.

Real-Life Example

Attorney Steven Goldstein recently had a client who underwent surgery after a serious accident. The at-fault driver only had a $25,000 liability policy. Without underinsurance coverage, the client would have been stuck with that small amount. Luckily, the client had purchased $100,000 in underinsurance coverage, allowing them to potentially recover an additional $75,000 toward their pain and suffering.

Why Matching Coverage Matters

Many people unknowingly buy high liability limits (to protect others if they cause an accident) but carry low underinsurance limits for themselves. This creates an imbalance where you protect others better than you protect yourself. Always ask your insurance provider to match your underinsurance limits to your liability limits—often at a minimal cost.

The Bottom Line

Insurance companies and brokers rarely explain the importance of underinsurance coverage. But if you're injured in an accident and the other driver is underinsured, it can make all the difference between struggling financially and receiving fair compensation.

If you're unsure whether your policy includes underinsurance protection—or if you've been injured in an accident and want to know your options—contact Goldstein & Handwerker or visit us at www.ghawnyj.com. We're here to help you get the coverage and compensation you deserve.