As a driver, you never know when you might be involved in a car accident. Even if you are a safe and responsible driver, other drivers on the road may not be. And unfortunately, not all drivers carry adequate insurance coverage to cover the damages they may cause in an accident. That’s why it’s important to have uninsured or underinsured motorist coverage as part of your auto insurance policy.
In this article, we’ll explore what uninsured or underinsured motorist coverage is, why it’s important.
What is uninsured or underinsured motorist coverage?
Uninsured or underinsured motorist coverage is an add-on to your auto insurance policy that provides coverage if you are in an accident caused by a driver who either does not have insurance or does not have enough insurance to cover the damages they caused. This coverage can help pay for medical expenses, lost wages, and other damages resulting from the accident.
Why is uninsured or underinsured motorist coverage important?
There are several reasons why having uninsured or underinsured motorist coverage is important:
Protects you from uninsured drivers: If you’re involved in an accident with an uninsured driver, you could be stuck paying for damages out of your own pocket. Uninsured motorist coverage can help protect you in this situation.
Covers expenses beyond the other driver’s policy limit: Even if the other driver has insurance, their policy may not be enough to cover all of the damages. Underinsured motorist coverage can help cover the gap.
Provides peace of mind: Knowing that you have uninsured or underinsured motorist coverage can give you peace of mind when you’re on the road. You can drive with confidence knowing that you’re protected in the event of an accident.
It can be affordable: Uninsured or underinsured motorist coverage is often very affordable and can be added to your policy for a relatively small premium.
FAQs
Is uninsured or underinsured motorist coverage required by law?
Uninsured or underinsured motorist coverage is not required by law in all states, but it is required in some. It’s important to check with your insurance provider or state laws to see if it’s required in your state.
How much uninsured or underinsured motorist coverage should I have?
The amount of coverage you need depends on several factors, including your state’s minimum requirements, the value of your vehicle, and your personal financial situation. It’s important to talk to your insurance provider to determine the appropriate amount of coverage for your specific needs.
Does uninsured or underinsured motorist coverage cover hit-and-run accidents?
Yes, uninsured or underinsured motorist coverage can cover hit-and-run accidents, as long as you have reported the accident to the police and your insurance company.
Can I use uninsured or underinsured motorist coverage for property damage?
Uninsured or underinsured motorist coverage typically only covers bodily injury, not property damage. However, some policies may offer property damage coverage as well.
Can I still file a lawsuit if I have uninsured or underinsured motorist coverage?
Yes, you can still file a lawsuit even if you have uninsured or underinsured motorist coverage. However, your insurance company may have the right to recover any money they paid out on your behalf if you win a settlement or judgment.
Final Thought
Uninsured or underinsured motorist coverage is an important add-on to your auto insurance policy that can provide valuable protection in the event of an accident caused by an uninsured or underinsured driver. It is important to consider your individual needs and circumstances when deciding how much coverage to add to your policy. Talk to your insurance provider to determine the appropriate amount of coverage for your specific situation.
Remember, accidents happen, and not all drivers carry adequate insurance coverage. Protect yourself and your passengers by adding uninsured or underinsured motorist coverage to your auto insurance policy. The peace of mind and financial protection it can provide is well worth the added cost.
