October 25, 2010

3 Major Benefits Of Uninsured Motorist Property Damage Coverage

There are many optional car insurance add-ons that can be purchased by a driver, but many people are either unaware of these coverages or they just simply do not understand them. Car insurance is a method of protecting a driver against financial loss due to a motor vehicle accident or another auto insurance claim. Auto insurance rates will depend on what types of coverages are purchased. One such optional insurance coverage is uninsured motorist property damage insurance.

The most common mandatory car insurance coverage is liability insurance. This protects a driver against financial loss if they are involved in an accident that is deemed their fault. Liability insurance covers damages to another person's personal property as well as injuries to any other third party - another driver, passenger, or pedestrian. If another person is deemed to be responsible for a collision, then the damages should be covered by their liability insurance. If this is the case, then many people may wonder why the need for uninsured motorist property damage insurance.

This insurance will compensate a driver for property damages sustained in an accident if the responsible party does not carry insurance or if they carry inadequate insurance. Without this coverage, you may be forced to pay for damages to your property out of your own pocket. Property damage could extend to your vehicle, home, fence, or other structures that you own. You may claim these damages on your home insurance policy, but then you would be looking at paying a deductible and your home insurance premiums will increase.

In many cases, when you make a claim through your insurance policy, you must also pay a deductible. Your auto insurance rates may also be affected by your claim. This usually applies to the physical damage coverages, which are collision and comprehensive. In certain states, if you purchase uninsured motorist property damage insurance, this coverage actually serves as your deductible for the collision portion of your policy. This will save you more money as well as deductibles an often be quite high. Generally, the higher the deductible, the lower the car insurance premiums will be. Just keep in mind that should you need to make a claim, you still need to afford the deductible.

If you do not already have uninsured motorist property damage coverage added onto your auto insurance policy, then contact your insurance agent and ask them to explain the benefits and premiums. This coverage will provide you with financial coverage as well as peace of mind. If you happen to be involved in an accident with a driver who is not adequately insured, then you will be protected against out-of-pocket expenses.