August 21, 2011

How Uninsured Motorist Coverage Works And When To Use It

When purchasing a vehicle, most people are focused on the type of car, the gas mileage it receives and what its cost is going to be. Rarely do people take into consideration one of the most important facets of owning an automobile: auto insurance. In fact, auto insurance is probably the furthest thing from their mind when they step into a car lot. But auto insurance is mandatory in the United States for every driver to have in order to operate a vehicle. You can't even drive your new car off the lot without proof of insurance. The minimum amount of insurance you need on your vehicle differs from state to state. One of the aspects of an auto insurance policy that isn't a requirement but is a great add-on to have is uninsured motorist coverage. Choosing auto insurance policies that have this particular coverage can help you, so it's important to know how it works.

Uninsured motorist coverage is necessary when choosing auto insurance policies in order to ensure that you are covered in all instances. Although auto insurance is mandatory in every state, some people choose to forgo obtaining insurance in order to save money. But if those individuals are ever in an accident, they are required to pay the injured person. However, this is only the case if you have uninsured motorist coverage.

Essentially, the way the coverage works is that it provides the victim driver the ability to receive damages for any harm done to the vehicle or any injury the driver receives from an accident with an uninsured, negligent individual. A higher premium must be paid for this type of insurance add-on and there are qualifying accident stipulations that must be met. Basically, if someone hits you that doesn't have auto insurance, they are required to pay the difference between what they're able to pay and what the injured driver is eligible to get had the person had insurance.

This type of coverage works in cases where you are involved in an accident caused by a negligent driver. If that driver doesn't have insurance and you got the uninsured motorist coverage on your plan, you would use it at that time. If you didn't have this coverage, the other driver may not be required to you anything unless they are taken to court. Your insurance company may only cover part of the costs since they won't be able to collect from any insurance company. In the end, you'd receive the total cost of all damages to your vehicle as well as costs related to any injuries you sustained. This is an important clause to have.