Automobile Liability Insurance

• Automobile liability insurance protects the owner and driver of a vehicle when responsible for causing bodily injury and/or property damage to a third party. While the owner and driver are the parties found to be liable for damages, the liability insurer pays the monetary compensation to the injured party on behalf of its insured. This contract to make payments on behalf of its insured is the basis of an automobile liability insurance policy.
  
  

Uninsured Motorist Insurance

• When a liable party is uninsured for the damage or injury caused to a third party, the third party looks to his own automobile liability insurance policy for uninsured motorist coverage. The uninsured motorist coverage will respond by filling the role of a liable party's insurer in negotiating compensation for bodily injury and property damage. Uninsured motorist coverage is a component of standard automobile insurance policies, and insureds pay an insurance premium for the benefit of coverage at the selected level of limits.
  
  

Underinsured Motorist Insurance

• Uninsured motorist coverage benefits will also extend to situations in which the responsible party maintains liability insurance, but in an amount insufficient to fully compensate for the injuries. The underinsured motorist coverage operates in the same fashion as uninsured motorist coverage, but will only fill in the gap between the available insurance and the actual amount of the claim.
  
  

Subrogation Rights

• The party liable for the injuries is not absolved of responsibility merely because the injured party was insured through uninsured motorist coverage. After settling the claim with its insurer, the injured party provides the right to recovery to her insurer, which will then pursue the responsible party for restitution. The liable party remains liable for the amounts paid and with no insurance, is exposed to a potential court judgment involving the loss of assets and/or garnishment of wages. The insurer's process of recovering its damages is known as subrogation.
  
  

Other Benefits

• Uninsured motorist coverage will also apply when the uninsured party is a pedestrian injured by an uninsured motor vehicle. As the coverage is intended to the take the place of the other party's automobile liability insurance, it does not require the injured party to also be operating a motor vehicle. Coverage also applies in the event of a hit-and-run incident when the responsible motorist cannot be identified. Confirmation of injuries caused by a motor vehicle is sufficient to trigger coverage under the uninsured motorist insurance.