Benefits of Uninsured and Underinsured Motorist Coverage
By law, U.S. motorists must purchase insurance coverage to be able to operate their vehicles. Auto insurance is a financial safety net that protects drivers in case of accidents or damage to their vehicles.
You can also purchase more than basic insurance coverage for extra protection in the event of an accident – uninsured or underinsured motorist coverage. It’s advisable to call an auto injury accident lawyer to help you understand how these extra protections work.
Uninsured and Underinsured Motorist Coverage
Uninsured and Underinsured Motorist Coverage (UM/UIM) comes in handy in car accidents involving underinsured or uninsured motorists. lack adequate coverage. UM is typically used where the at-fault party fails to uphold their responsibility.
On the other hand, UIM is your shield when the at-fault driver’s insurance is insufficient to cover your costs. If their coverage limit falls short, UIM steps up to bridge the gap by covering additional expenses.
Additionally, these coverages can be used in hit-and-run incidents (where the at-fault driver flees the scene).
Benefits of UM and UIM
Here are the benefits of purchasing underinsured and uninsured motorist coverages:
Avoiding Financial Pitfalls
Many people underestimate the financial repercussions of a car accident. If you’re involved in an accident with an uninsured or underinsured driver, UM and UIM can cover your medical bills and car repair costs.
Quick Recovery for Damages
The recovery process can be time-consuming and complicated. Having UM/UIM coverage ensures a smoother and quicker recovery for your damages, sparing you from prolonged legal battles.
Comprehensive Protection
Depending solely on liability coverage is not a smart move. While this covers damages you may cause to others, UM/UIM can step in when the responsible party is uninsured or underinsured.
Minimizes Out-of-Pocket Expenses
A common misconception is that health insurance covers all medical costs in the event of an accident. If health insurance does not cover all expenses, UM/UIM coverage can act as a safety net, reducing the financial burden on your part.
Preserving Your No-Claim Bonus
Some drivers hesitate to file a claim fearing an increase in premiums. With UM/UIM coverage, you can protect your no-claim bonus and still receive compensation for damages caused by an uninsured or underinsured driver.
Peace of Mind on the Road
The aftermath of a car accident can have a psychological toll on you. Knowing you have UM/UIM coverage provides peace of mind and allows you to focus on recovery instead of worrying about the financial aftermath.
Covering Hit-and-Run Incidents
Not all drivers have the courtesy to stop after causing an accident. In hit-and-run accidents, UM/UIM coverage can provide compensation when the responsible driver is unidentified or flees the scene.
Tailored Coverage Options
Many drivers falsely believe that insurance coverages are one-size-fits-all. UM/UIM can be customized based on your needs, ensuring you have the right level of protection for your unique circumstances.
Covering Future Medical Costs
Accident victims often overlook the potential long-term medical costs. UM/UIM coverage considers future medical expenses. This provides a comprehensive safety net for injuries that may require ongoing treatment.
Legal Compliance
In many states, purchasing UM/UIM coverage is a legal requirement. Lacking these two auto insurance coverages may result in legal and financial consequences.
How to Choose an Auto Insurance Coverage
Here are the factors to consider when buying auto insurance coverage:
Coverage Types and Limits
Understand the various coverage options, such as liability, comprehensive, collision, etc. Set appropriate limits that align with your needs and financial situation.
Deductibles
Assess how much you’re willing to pay out of pocket before insurance kicks in. A higher deductible can lower your premium but increases your immediate expenses in case of a claim.
Driving Habits
Your daily commute and driving history influence premiums. If you rack up miles regularly or have a history of accidents, expect adjustments in your rates.
Vehicle Type
The car you drive matters. Insurance for that sleek sports car might come with a heftier price tag than coverage for a family sedan.
Discounts and Incentives
Inquire about available discounts, such as safe driver discounts, multi-policy discounts, or even good student discounts if applicable. Every penny saved counts!
Insurance Company Reputation
Read reviews, check customer satisfaction ratings, and ensure their claims process is hassle-free.
Financial Stability
You want a company that can handle claims promptly. Look into their financial ratings to gauge stability.
Additional Coverages
Consider add-ons like roadside assistance, rental car coverage, or gap insurance for a more comprehensive protection package.
Policy Exclusions
Be aware of policy exclusions to avoid surprises. Some policies may not cover specific circumstances or types of damage.
Having UM and UIM coverage ensures you’re adequately protected in the event of an accident involving underinsured or uninsured motorists. Plus, you don’t have to break the bank to purchase these auto insurance covers.
