We have all heard of uninsured motorists and uninsured motorist coverage in insurance. It is also possible for motorists to have insurance but not have enough coverage to meet your needs if they hit you and cause damage and/or injury. These underinsured drivers can cause problems for you, just like uninsured motorists.

The minimum liability coverage in Phoenix, Arizona, was recently raised to $25,000 from the previous minimum of $15,000, according to an article at tuscon.com. The law provides for a minimum for multiple injuries in any one accident that may go as high as $50,000 in some cases. The minimum for property damage, such as your car might suffer in an accident, increased to $15,000.

The new requirements are still lower than the potential costs

Prudent Arizona motorists buy more coverage than these minimums. Anyone familiar with medical costs knows that they can easily exceed these figures. As well, anyone who has shopped for a car lately knows that $15,000 does not go very far. If you encounter a situation where the other party’s insurance is not adequate, you may have two alternatives:

Look to your own underinsured motorist coverage

Many policies today offer coverage to protect you in the event that you encounter an uninsured or underinsured motorist. However, insurance companies, whether yours or the other party’s, are not always eager to pay what is fair, so you may still need representation.

Seek more from the other party

Just because a motorist has a limit on their coverage does not mean that is all that is available. The other motorist may have assets that make a larger settlement or award possible if your losses exceed their coverage.

It is important that you understand your options, especially in situations like this. Accepting an insurance settlement typically involves waiving the right to seek further compensation from a motorist, so you must understand the situation before you sign any agreements.