Uninsured motorist coverage can be a confusing topic, especially if you don’t drive and therefore don’t need it yourself.
But as soon as you step into the car, you’re exposed to the possibility of getting in an accident with an uninsured driver, which could lead to serious problems if you don’t have sufficient insurance coverage to support yourself and your family.
In order to fully protect yourself from these scenarios, here are seven things you need to know about uninsured motorist coverage.
1) You’re Not Fully Protected Unless You Have Uninsured Motorist Coverage
This is something many people overlook when getting car insurance. Uninsured motorist insurance protects you in the event that someone else crashes into your car and they are at fault but don’t have any insurance.
The purpose of this type of policy is to help cover any medical bills, lost wages, and pain and suffering you incur as a result of the other driver’s negligence.
It also helps cover the cost of repairing your vehicle if it was damaged in the accident. For example, say your totaled car would’ve cost $5,000 to repair with collision coverage.
If you didn’t have collision coverage on your own policy and the other driver who caused the crash only has liability insurance, then you’re out of luck in terms of recovering costs for damages.
2) Uninsured Motorist Coverage Covers More Than Just Uninsured Drivers
Uninsured Motorist Coverage is a type of insurance that pays for expenses incurred due to an accident caused by someone without any liability insurance.
This type of coverage is important because it ensures that victims are not left on the hook for their medical bills and vehicle damage, just because they were unlucky enough to have been hit by someone driving without insurance.
Uninsured Motorist Coverage can be purchased separately from liability insurance, or as an add-on.
It provides additional protection when drivers don’t carry liability insurance – which means that when you get into an accident with them, you will be covered.
It’s important to note that your Uninsured Motorist Coverage will only pay out in cases where the other driver has no available insurance, if they do have some form of coverage, then your policy will step in and provide them with what they need first.
3) Uninsured Motorist Coverage Is Often Required by Law
Most states require the purchase of uninsured/underinsured motorist (UM/UIM) coverage.
These policies provide protection for people who are injured in a car accident by an at fault driver who does not have insurance, or has insufficient coverage.
If you’re hit by a driver with no insurance, is there to make sure that you can get compensation for your medical bills and lost wages.
Uninsured/Underinsured Motorist Coverage is Available as Part of Your Personal Auto Policy: UM and UIM coverage is included as part of your Personal Auto Policy.
It’s important to note that it’s only available when another party is legally liable for damages caused by the collision.
The benefits paid under this type of policy may vary based on whether they’re required by law, the severity of injuries suffered, and other factors such as income level.
Additionally, some drivers find that they must pay higher premiums if they want UM/UIM coverage in their auto policy because they pose more risk to insurers than other drivers do.
4) Uninsured Motorist Coverage Is Affordable
If your vehicle is hit by a driver who doesn’t have car insurance, they will be responsible for the damage. But if they don’t have enough money to cover the cost of damages, then it’s up to their insurer and your own insurer.
The problem is that most drivers can’t afford to pay $100,000 in damages. That’s why most states require motorists to purchase Uninsured Motorist Coverage (UMC) in order to protect themselves from this issue. UMC can also help protect you from injuries that are caused by an uninsured motorist.
Even though you won’t be compensated for pain and suffering, the medical bills can still add up quickly.
And with more than 15% of drivers on our roads being uninsured, it’s better to stay safe with protection than sorry without it.
5) Uninsured Motorist Coverage Protects You in Hit-and-Run Accidents
Uninsured motorist coverage can help protect you in the event of a hit-and-run accident.
Here are important things you need to know about this type of coverage:
✓) It is not always required by law. Check with your state insurance agency to find out if it is required where you live. If it’s not, then purchasing it will be up to you.
The most common reason for requiring it by law is that the other driver was either under 18 or was driving without insurance.
In these cases, the victim cannot recover damages from the at fault party because he or she doesn’t have any money to pay them back.
2) The standard limit for uninsured motorist coverage is $100,000 per person/$300,000 per accident.
6) Uninsured Motorist Coverage May Cover You if You’re Injured by an Underinsured Driver
Uninsured motorist coverage is also known as UM or UM/UIM. If a driver with insurance is in an accident and doesn’t have enough coverage to cover your injuries, UM could help.
UM will not cover your medical bills, but it may pay for lost wages and other out-of-pocket expenses if you were injured in the crash.
Uninsured motorists are more common than drivers with no insurance at all. For example, there were 11 million uninsured motorists in 2007,
whereas only 2 million had no insurance at all. It’s important to note that this type of coverage isn’t meant to be used instead of having your own car insurance policy.
It will only kick in if you don’t have any auto liability protection because the other party was uninsured.
7) Uninsured Motorist Coverage Is Worth the Peace of Mind
Uninsured Motorist Coverage is a type of car insurance that pays for your damages if an accident is caused by an uninsured or underinsured driver.
If you are hit by a driver who doesn’t have the proper auto insurance, UM/UIM can help cover medical bills, lost wages and pain and suffering.
UM/UIM can also protect your family from financial disaster in the event that you are killed in an accident caused by someone without enough car insurance.
In most states, motorists must buy bodily injury liability insurance to pay for damage they cause other drivers.
Without this protection, drivers will be liable if they are at fault in a crash even if they don’t have much money. In these situations, UM/UIM will pick up the slack to help ensure victims and their families receive compensation for their losses.