Uninsured motorist insurance is an essential type of coverage that every driver should consider adding to their policy.
When purchasing car insurance, most people know that they need liability insurance to cover damages that they may cause to other drivers. However, many people overlook the importance of uninsured motorist insurance. It is currently estimated that 28 million people in the U.S. don’t have insurance, which is alarmingly high. If you want to ensure your safety when you’re out on the road, uninsured motorist insurance will give you the peace of mind you’re looking for; as it can protect you if you are hit by a driver who does not have insurance. Below are 5 reasons uninsured motorist insurance is important and why you should consider adding it to your policy.
1. Protection in the Event of an Accident with Uninsured or Underinsured Drivers
If you are involved in an accident with a driver who does not have insurance or does not have enough insurance to cover your damages, uninsured motorist insurance can help fill in the gaps. This type of coverage can provide you with the protection you need in the following ways:
Hit-and-Run Accidents: Uninsured motorist insurance often includes coverage for hit-and-run accidents. If you are involved in a hit-and-run incident where the at-fault driver cannot be identified or is uninsured, your uninsured motorist coverage can help cover your medical expenses and other damages.
Supplemental Coverage: Uninsured motorist insurance can act as supplemental coverage to fill the gaps left by the at-fault driver’s inadequate insurance. If the other driver’s policy limits are insufficient to cover your damages fully, your uninsured motorist coverage can make up the difference, up to the limits of your policy.
Coverage for Bodily Injury: Uninsured motorist insurance typically covers your bodily injuries sustained in an accident caused by an uninsured or underinsured driver. If the responsible driver lacks insurance coverage or has insufficient coverage to pay for your medical expenses, lost wages, and pain and suffering, your uninsured motorist insurance can step in to provide compensation.
Most importantly, this kind of insurance offers peace of mind when you’re on the road by providing an additional layer of protection; ensuring that you have financial support if you are involved in an accident with an uninsured or underinsured driver.
2. Added Sense of Security
Adding uninsured motorist insurance to your policy can provide you with an added sense of security while driving on the road. Knowing that you have supplemental coverage for situations where the other driver’s insurance policy limits are insufficient to cover the full extent of your damages is priceless. This extra coverage reduces your dependence on others’ insurance and gives you peace of mind, knowing that you have dedicated protection in case other drivers are uninsured or underinsured. Overall, uninsured motorist insurance provides an additional layer of security, giving you confidence and financial preparedness while on the road.
3. Affordable Coverage
Uninsured motorist insurance is typically very affordable, especially when you consider the potential costs associated with an accident with an uninsured driver. Most insurance providers offer this type of coverage as an add-on to your existing policy, while other providers already include it in your standard package. Since this kind of policy provides greater protection than normal liability policies do, they usually have a higher premium. According to a study done by the Institute Research Council in 2021, 12.6 percent of all drivers in the U.S. were uninsured. Given the potential perils associated with driving on today’s roads, the cost of uninsured motorist insurance can be well worth it in terms of peace of mind and financial security should an accident occur.
4. State Requirements
Minor car accident, police on the scene; image by Aaron Doucett, via Unsplash.com.
There are currently 22 states that require uninsured motorist insurance by law. If you live in a state that requires uninsured motorist insurance but you don’t have it, the consequences can vary depending on the specific laws and regulations of your state. Here are some potential outcomes:
Legal Penalties: Failing to comply with the state’s requirement for uninsured motorist insurance may result in legal penalties. This can include fines, citations, or even the suspension of your driver’s license or vehicle registration. The severity of the penalties can vary by state.
Limited Coverage Options: Without uninsured motorist insurance, you may have limited options for seeking compensation if you are involved in an accident with an uninsured or underinsured driver. Instead, you might have to rely on other sources such as personal health insurance or savings. However, these alternatives may not provide the same level of coverage or financial protection as uninsured motorist insurance.
Potential Lawsuits: In some cases, not having uninsured motorist insurance may leave you with no choice but to pursue legal action against the uninsured driver to recover your losses. This can involve filing a lawsuit, going through the legal process, and potentially facing challenges in collecting compensation if the uninsured driver has limited assets.
5. Peace of Mind for Other Passengers
Along with protecting yourself, uninsured motorist insurance can also provide peace of mind for other passengers in your vehicle. If you are involved in an accident with an uninsured driver, this type of coverage can protect your passengers as well, ensuring that they receive the medical care they may need. By having uninsured motorist coverage, you can rest assured knowing that your policy will take care of the damages incurred to either yourself, your passengers, or your vehicle. When assessing the cost-benefit analysis, uninsured motorist coverage is worth considering; as it could potentially save thousands in out-of-pocket expenses related to any accident with an underinsured driver.
Uninsured motorist insurance is an essential type of coverage that every driver should consider adding to their policy. If you are looking to protect yourself and others, this type of coverage gives you the added security you need while driving.
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