Uninsured and Underinsured Motorist Coverage Explained

Uninsured and Underinsured Motorist Coverage Explained
Uninsured and Underinsured Motorist Coverage Explained

When you are putting together your own auto insurance policy, it is important to take a look at your uninsured motorist coverage. If you get in an accident and the other driver does not have insurance, how will that affect you? If you have uninsured or underinsured motorist coverage, then you will be looking at a situation where you will probably be fine. Just because your state requires auto insurance does not really mean that everyone has it, and as many as 25% of drivers in some parts of the world are driving without insurance on a daily basis. If you want to make sure that you are completely covered in an auto accident, you need to make sure that you are also insuring yourself against the uninsured drivers out there.

What is Uninsured Motorist Coverage?

In short, uninsured motorist coverage is what will pay for the injuries to you and anyone else in your car when you get into an accident and the other person is uninsured. In some situations, you may also be covered against the damaged to your property. The situations where your property will also be covered usually involve the other driver being legally responsible for the damage to your vehicle. In addition to covering situations where the other driver is uninsured, uninsured motorist coverage can also cover yourself against drivers who are underinsured. This means that they have insurance but it does not meat the state specific minimum coverage requirements. Hit-and-run accidents can also be covered by uninsured motorist coverage since there is no other motorist to be insured. One last thing to note is that although uninsured motorist coverage is usually combined with underinsured coverage, the reality is that these policies are sometimes sold separately.

Cases of Underinsured Motorist Protection

In cases where your underinsured motorist protection will need to kick in, your insurance company will only need to pay part of the entire cost of your car’s damages or your injuries. The other person’s insurance will still be used up to its maximum amount of coverage. The limit on your underinsured motorist coverage does include the amount forked over by the other party’s insurance company, so you need to keep that in mind when you are trying to figure out the limit that you will need. Your underinsured motorist coverage will also cover anyone else who is riding in your car during the accident.

Uninsured Motorist Property Damage Coverage

By adding uninsured motorist property damage to your overall coverage, you should be able to add extra coverage to your insurance plan without raising your premiums by a large amount. This kind of coverage will not apply to hit-and-run accidents because this form of coverage is cheaper than normal collision coverage that most people find in an auto insurance policy. You will not be able to use this as your collision coverage on its own, and you should not expect to be able to use it cover hit-and-run scenarios.

Bodily Injuries from an Uninsured Motorist

One final piece of the puzzle when protecting yourself from underinsured and uninsured drivers is making sure that you will be fine in situations where you or your passengers are hit with bodily harm. This type of protection can also help you out when you are walking down the street. If you have coverage for bodily injuries suffered when an uninsured motorist hit you as you crossed the street, then this type of coverage could be used to pay for your medical injuries. In fact, it may also be used to covered any lost wages due to your recovery from your injuries. This is an important form of coverage because health and medical insurance does not usually cover lost wages caused by an accident. You could always get disability insurance for this kind of situation instead, but that would leave everyone else in your car without coverage for their wages.

What Happens if You Aren’t Insured Against the Uninsured?

The reality of insurance against uninsured motorists is that you cannot afford to drive down the road without it. Although you’d like to think that everyone would have auto insurance in the year 2013, the reality is that not everyone seems to think that insurance is serious business. If you are the kind of person who would never think about getting behind the wheel of a car without insurance, then you should also think about what would happen in a situation where the person at fault for an accident was not insured. Roughly 1 in 7 people no the road are currently uninsured, so this is not a situation that is completely out of the realm of possibility. In a situation where the other person does not have insurance and you get into an accident with them, you may be put in a situation where you and your passengers have to pay for your auto damage and personal injuries on your own.

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