Most everyone knows what liability coverage and comprehensive coverage on his or her auto insurance means. One protects you from damages resulting from a crash you caused and the other can help quickly repair your damaged or totaled vehicle, no matter the cause. But what does uninsured/underinsured motorist coverage do? Who needs it and why?
Every state requires drivers to carry a minimum standard of liability coverage. We all know that not everyone on the road complies with this mandatory coverage, however. When you are involved in a collision with an uninsured motorist, this type of coverage can help. Even though the other driver is at fault, this coverage can help pay for treating your injuries and can sometimes even help repair your damaged vehicle.
More commonly, this type of insurance can help even if the other driver has insurance. Unfortunately, many states’ minimum standards of liability coverage have not been updated for years, sometimes even decades. What may have been sufficient coverage in the early 1990s is no longer adequate to cover the rising cost of medical care. These days, if a motorist only carries the bare minimum to meet state regulations, chances are very likely that he or she is underinsured. If you are involved in a collision with an underinsured driver, their policy is typically not nearly enough to cover the cost of you or your passengers’ injuries, not to mention any damages. By carrying this type of coverage yourself, you can avoid the added expense of such accidents.
Everyone can benefit from carrying uninsured/underinsured motorist coverage. Just how much coverage you need depends on a few details. The limits for this coverage can range from $20,000 up to $1 million. Some insurance providers require the amount to be equal to your bodily injury liability limit, while others have fewer restrictions. For help deciding on how much you should carry, consider how much your vehicle is worth, what kind of medical insurance you have, and whether you have access to some type of disability coverage.
It’s always a good idea to speak with a knowledgeable, independent insurance agent – such as those at Financial Assurance – about your uninsured/underinsured motorist coverage. Our agents can help identify your auto insurance needs, suggest coverage options, and also assist you in finding a number of quotes from a variety of providers with which to compare. Contact us to find out how you can obtain the best coverage at the most affordable rates.