Whether or not a specific type of optional car insurance coverage will benefit you will often depend upon factors such as the value of your vehicle and whether your car is owned or financed. However, there is one type of optional coverage which all drivers truly can benefit from. This type of optional car insurance coverage is known as uninsured/underinsured motorist coverage. Continue reading to learn more about this type of coverage and why it is so important for you to have.
Uninsured Motorist Coverage
Currently, there are laws in most states that require drivers to carry liability auto insurance. Unfortunately, as is the case with most laws, there are always going to be people who fail to comply with the laws regarding car insurance. If one of these individuals hits your vehicle, you will not be able to seek compensation through their insurance company. Your only legal recourse in this situation will be to file a civil claim against the driver in the hopes that you will one day recover your losses. Sadly, many of the people who file these civil claims will never recover their money. Uninsured motorist coverage provides you with another option in this situation. Rather than paying for any repairs or medical bills out of your own pocket, you will be able to file a claim with your insurance company for any damages even if you do not carry collision or comprehensive coverage on your vehicle.
Underinsured Motorist Coverage
Simply because a driver does have an active insurance policy does not mean that this policy will automatically cover all of the damages associated with an accident. This is because each state only requires drivers to carry a minimal amount of coverage. If a driver chooses to purchase a policy that only offers this minimal coverage, it is possible that the policy limits will be less than the actual damages resulting from an accident. This is especially true if you have an expensive vehicle or were to suffer severe injuries. If the driver who hits you has an inadequate insurance policy, you could find yourself paying for some of the damages out of your own pocket once their insurance coverage has been exhausted. Underinsured motorist coverage allows you to file a claim with your insurance company for these excess costs so that you do not have to pay for them out of your own pocket. This can be extremely helpful if you require extended medical care after your accident or if you are left with a car loan that is not fully paid off by the other driver's insurance coverage.