Uninsured And Underinsured Polices
Although nearly every state requires that drivers carry at least liability insurance for their cars, the fact is that many do not. In some cases, uninsured or underinsured drivers can cause damage to your car, and then either don’t have enough in their policy to cover the damage or don’t have a policy at all, leaving you with no way to recoup the cost of the damages. This is a strong case for buying insurance that includes uninsured/underinsured motorist coverage.
This kind of extra coverage can be added to your basic policy for an extra premium. Although you may not believe that this kind of coverage is worth the price, consider how you would pay for damages to your vehicle (or injuries to yourself and your passengers) if you were to be in a collision with an uninsured driver. This could be extremely expensive, certainly more than the extra cost of the insurance.
Ideally, every motorist should have uninsured motorist coverage, even though it is not required. This coverage not only protects you the driver, but your passengers and anyone listed on the policy are covered if involved in an accident and the other driver is uninsured or is underinsured against damages. Your insurance under the uninsured motorist coverage will cover expenses such as: hospital, treatment, funeral services, car repairs or replacement costs, content damage, disability indemnity, etc. The limit for these expenses will be determined by the amount of your uninsured or under-insured limit in your automobile insurance policy.
?I already have that coverage?, you think. ?My policy covers hospitalization, property damage, funeral costs, and more?. Your regular auto insurance policy usually covers these things for accidents that are your fault. But if you aren’t at fault, the person who caused the accident is in charge of paying the bills. If that person has no insurance, they have to pay for it all outright. Unfortunately, people who can’t afford insurance can’t afford your hospital bills, either. This means you’ll have to pay those costs yourself, and can you really afford that?
The other driver should be responsible for the expenses incurred as a result of the accident; however, in the event the other driver lacks coverage or is insufficiently covered, you will be left to pay the costs.
Usually the price of damages is handled by the driver at fault. However, in the case of an uninsured driver, there is no other option than to take on this burden yourself. A single incident or accident could cripple your finances in a moment, and it’s in your best interest to protect yourself from this possibility.
When buying new insurance or renewing your old policy, be sure to ask about optional coverage options such as this. There are many studies and statistics which show that the number of deaths from car accidents is quite high, and it would be unfair to you and your family not to protect yourself against the possibility of this kind of devastating financial burden. Look into uninsured motorist coverage and find out what it takes to add it to your policy.
