The Road Less Traveled: Understanding Uninsured/Underinsured Motorist Coverage
The Road Less Traveled: Understanding Uninsured/Underinsured Motorist Coverage
When it comes to car insurance, there are many types of coverage that can seem daunting to understand. One often-overlooked aspect of auto insurance is uninsured/underinsured motorist coverage. In this article, we’ll break down what this coverage entails, why it’s essential, and how to choose the right policy for your needs.
What is Uninsured/Underinsured Motorist Coverage?
Uninsured/underinsured motorist coverage is a type of insurance coverage that protects you and your passengers in the event you’re involved in an accident with another driver who doesn’t have sufficient insurance or doesn’t have insurance at all.
Why is Uninsured/Underinsured Motorist Coverage Important?
Unfortunately, it’s not uncommon for drivers to be uninsured or underinsured. According to the Insurance Research Council, in 2015, about 12.6% of all motorists in the United States were uninsured. This means that if you’re involved in an accident with an uninsured or underinsured driver, you may be left with significant medical bills, lost wages, and property damage claims.
How Does Uninsured/Underinsured Motorist Coverage Work?
Uninsured/underinsured motorist coverage kicks in when you or a family member is injured in an accident with an uninsured or underinsured motorist. This coverage provides compensation for damages, including:
- Medical expenses
- Lost wages
- Property damage
- Pain and suffering
Types of Uninsured/Underinsured Motorist Coverage
There are two main types of uninsured/underinsured motorist coverage: bodily injury and property damage. Both types of coverage are usually combined under a single policy.
- Bodily Injury Coverage: Covers medical expenses and lost wages for injuries sustained in an accident with an uninsured or underinsured motorist.
- Property Damage Coverage: Covers damage to your vehicle or other property in an accident with an uninsured or underinsured motorist.
How to Choose the Right Uninsured/Underinsured Motorist Coverage
When selecting an uninsured/underinsured motorist coverage policy, consider the following:
- Determine Your Policy Limits: Choose a policy limit that covers the full amount of your medical expenses and other damages. A higher limit provides greater protection, but also increases your premium.
- Understand the Deductible: Review the deductible amount, which is the amount you’ll need to pay out-of-pocket before your coverage kicks in. Higher deductibles can lower your premium, but also increase your financial risk.
- Shop Around: Compare policies from different insurance companies to find the best coverage at the best price. Be sure to review the policy language and ask questions before making a final decision.
Conclusion
Uninsured/underinsured motorist coverage may not be the most exciting aspect of auto insurance, but it’s an essential protection to have in place. By understanding what this coverage entails and choosing the right policy for your needs, you can rest assured that you’ll be protected in the event of an accident with an uninsured or underinsured motorist.
As you navigate the road of life, make sure to take the road less traveled – the road of preparedness. Choose an uninsured/underinsured motorist coverage policy that provides the right level of protection for you and your loved ones.
