Uninsured Motorists
If you are involved in an auto accident, there is a 1 in 7 chance the other person involved does not have car insurance. This number is actually getting higher. There is no red flag indicator as to why so many people are uninsured, but many believe it is a combination of the state of the economy and people’s belief that they don’t need it. The fact is that if you drive a car, you need it. There is a reason that this is a law in every state. It is to protect yourself and everyone else on the road.
Although state laws require all drivers to have auto insurance, there is not much enforcement on the matter. It is true that, in many states, when you register your vehicle with the Department of Motor Vehicles, you are required to provide proof of insurance. However, once that is completed, there is practically no enforcement thereafter. Except for states that maintain an electronic database, and carriers report cancelled policies, the only way for law enforcement to find out is if you are pulled over or involved in an auto accident.
This being said, it is very important for all drivers, (who carry auto insurance) to have uninsured motorist coverage as well as underinsured motorists coverage. Uninsured motorist coverage will cover bodily injury claims to you that would ordinarily be paid by the other party’s liability insurance. You may also buy limited protection for your vehicle, or a deductible waiver if you have collision coverage.
In addition to uninsured motorist coverage, it is very important to carry underinsured motorist coverage. These two coverages are usually sold together. If you are “lucky” enough to be involved in an accident with someone who DOES have insurance coverage, there is a good chance they only carry the state minimums. In most states, this limit is $15,000. If you are in a serious accident, the costs add up very quickly. Your health insurance may cover your hospitalization costs if you are injured, but what about loss of income if you can’t work for an extended period of time? Having underinsured motorist coverage gives you the extra protection you need to prevent any out of pocket expenses.
It would be nice if we lived in a perfect world where everyone carried the proper amount of insurance. As you can see, we are far from that. So to ensure you and your family are protected, it is essential to carry uninsured and underinsured motorist coverage.
This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.