Importance Of Underinsured Motorist Coverage

Being involved in a motor vehicle collision is stressful enough without having to worry about additional financial burdens. The purpose of an auto insurance policy is to protect drivers from such occurrences. If an accident is your fault, then liability insurance will cover damages to property and injuries to other people. However, if you are involved in an accident that is caused by someone who is uninsured, you may find yourself facing financial difficulty. An important coverage to look into when obtaining quotes for auto insurance online is uninsured motorist coverage.

Uninsured or underinsured motorist coverage is an additional insurance coverage that you can add to your existing auto insurance policy. This coverage will protect you against injuries to you or your passengers as well as property damage if they are caused by a driver who does not have adequate insurance in place. This coverage will also apply to a hit-and-run driver, as it cannot be proven whether or not they have adequate insurance, if they are not caught. It is meant to pay the costs that incur if the responsible driver only carries the minimum amount of insurance limits if they are not enough to cover the total damage costs.

Auto insurance can be expensive, in most people’s opinion, as there are so many different optional coverages that can be added on. Full coverage can certainly add up, but in reality, uninsured motorist coverage is relatively inexpensive compared to the expenses that you may be subject to without it. Not having this additional coverage can result in you paying out of pocket for such things as medical expenses or funeral expenses. As well, if you are injured and must be out of work for a significant amount of time, this insurance will protect you against loss of wages.

Uninsured motorist coverage will pay benefits if an uninsured or underinsured driver damages your vehicle or any other property that you own. It will also cover injuries to you or any passengers in your vehicle. The cost of vehicle parts and labor and medical expenses are increasing more and more every year and this insurance can help relieve the burden of having to pay for these items and services. It not only provides financial protection but also gives you peace of mind.

A driver can choose to obtain an insurance policy at any licensed insurance agency or they can purchase auto insurance online. No matter which method is used, it is important to understand all coverages that are available. Under/uninsured motorist coverage is mandatory in some states but is optional in others. Always check the insurance limits and requirements in the state that you live in.

Importance Of Uninsured Motorist Coverage

The number of uninsured motorists is on the rise. In a down economy, not only do mortgages go unpaid but so does car insurance. So it is even more important for you to have uninsured motorist coverage on your auto insurance policy. When buying auto insurance online be sure to select this optional coverage.

If a driver causes an accident his liability policy will normally pay for property damage and medical expenses of the injured party. This system only works if the driver has insurance. Although most states require drivers to have liability insurance, there are certainly drivers on the road without the mandated insurance coverage. The more drivers there are without the proper insurance coverage the more at risk you are for being involved in an accident, caused by a negligent driver who has no insurance an can’t afford to cover the accident expenses.

Another problem is that the required liability insurance limits are low and may not cover all of the expenses that result from an accident. These drivers are underinsured. If they are sued as a result of the accident, they certainly would not have the insurance coverage to settle any judgment.

Underinsured motorist coverage pays after the other driver’s insurance has paid. The limit for underinsured motorist protection is the total amount that would be paid by both insurance companies. It is not as you might assume the amount your insurance would pay. You insurer will pay up to the limit on the policy minus the amount paid by the other insurer.

One way to protect yourself is to buy uninsured and underinsured motorist coverage. Policies for uninsured and underinsured motorists are sometimes combined in an auto insurance quote but only one or the other can be claimed, as they are separate coverages. Most states require the insurance company to offer uninsured motorist coverage but it can be rejected by the consumer.

Not only are you protecting yourself, but you are looking out for any passengers that are riding in your vehicle. If they are injured in an accident, even if it was the other driver’s fault, you would their medical expenses and lost wages to be covered. Both uninsured motorist and underinsured motorist policies cover you and your passengers when riding in your car and you and any other persons listed on the policy when they are riding in other cars.

When buying auto insurance online or from a broker, be sure that you have requested that uninsured and underinsured coverage is offered to you and that you accept it. The modest premiums for this type of coverage can provide financial protection to you and your family.