When would you use underinsured or uninsured motorist coverage?
When would you use Underinsured motorist coverage?
Underinsured motorist coverage is designed to provide protection in the event that you are involved in an accident with a driver who has automobile insurance, but their policy limits are not enough to cover all of the damages resulting from the accident. Here is an example of when underinsured motorist coverage may be needed:
Let’s say you’re involved in a car accident with another driver who is at fault. You sustain significant injuries and your medical bills and other expenses add up to $100,000. However, the at-fault driver only has insurance coverage with a policy limit of $50,000. In this case, if you have underinsured motorist coverage, your own insurance policy would cover the remaining $50,000 in damages, up to the limits of your policy.
Underinsured motorist coverage can also provide protection in the event that the at-fault driver’s insurance company disputes liability or the amount of damages, leaving you with unpaid expenses. It’s important to note that underinsured motorist coverage is not required by law in all states, so it’s important to check with your insurance agent to determine if it’s required in your state and if it’s a coverage that you should consider adding to your policy.
When would you use Uninsured motorist coverage?
Uninsured motorist coverage is designed to provide protection in the event that you are involved in an accident with an uninsured or underinsured driver. Here is an example of when uninsured motorist coverage may be needed:
Let’s say you’re driving on the highway when another driver suddenly swerves into your lane, causing a collision. After the accident, you exchange insurance information, but when you contact the other driver’s insurance company, you learn that they don’t have any insurance coverage. In this case, if you have uninsured motorist coverage, your own insurance policy would provide coverage for your medical expenses, lost wages, and other damages resulting from the accident, up to the limits of your policy.
Uninsured motorist coverage can also provide protection in the event of a hit-and-run accident where the other driver cannot be identified or located, or if the other driver has insufficient auto insurance coverage to pay for your damages. It’s important to note that uninsured motorist coverage is not required by law in all states, so it’s important to check with your insurance agent to determine if it’s required in your state and if it’s a coverage that you should consider adding to your policy.