What Does it Mean to Be Uninsured or Underinsured?
View PDF | Print View
by: tdd1984
Total views: 182
Word Count: 451
|
Although all drivers are legally required to carry auto insurance in order to drive, the sad reality is that there are many people that do not have insurance coverage in place. In addition, many of those that are carrying car insurance do not have enough insurance in place to adequate compensate the other people that are in accidents they cause. Therefore, it is important to have uninsured and underinsured insurance in place in your policy. Why Uninsured and Underinsured Coverage is Important to Have In order to keep yourself adequately protected, it is important to have uninsured and underinsured car insurance in place. Although the person causing the accident is responsible for paying for your medical expenses and property damage expenses, you are not necessarily going to get the money you owed from that person. After all, if that person doesn’t have insurance and doesn’t have any money to give, he or she will not be able to give you the money you deserve. With uninsured and underinsured coverage in place, you will receive the money you need without having to worry about getting money from the person that injured you. Understanding Uninsured Motorist Insurance Uninsured motorist insurance is in place to provide you coverage if the person who caused the accident does not have insurance in place. It will also provide you with compensation of the person does have insurance but the insurance company is in financial trouble and is unable to pay. This insurance is also good to have in place in case you are injured by a hit and run driver. Since the driver cannot be identified, your claim would fall under the uninsured category as well. Understanding Underinsured Motorist Insurance Underinsured motorist insurance is used if the person who causes the accident does have insurance but does not have enough coverage in place. For example, the driver may have $50,000 worth of coverage for property damage but your vehicle and other property may have been worth $75,000. This means you would be left with $25,000 that still needs to be compensated. If you get into an accident and the other driver does not have enough insurance coverage to pay for all of the expenses, your underinsured motorist coverage will pay for the rest of the costs. Although all drivers are expected to carry insurance, there is always a chance that the person who causes the accident will not have insurance in place. Or, even if the driver does have the minimum required coverage, it still may not be enough to pay for all of your expenses. The only way to be fully protected is to have uninsured and underinsured coverage in place. |
About the Author
Shannon Kietzman is a freelance writer and an authority on car insurance issues, including methods for online auto insurance. She helps others learn the basics of car insurance so they can make proper and informed decisions when choosing the coverage that is right for them.
| previous: How to buy Rugs | next: Think about the future with income protection insurance |
Rating: Not yet rated
Login to vote