KEY
POINTS
-
In most states, one out of every eight drivers do not have auto insurance. It is crucial to check your policy before purchasing it to make sure you're covered and protected.
-
If you are involved in a serious accident with someone on the road who has no protection and does not carry auto insurance, you may deal with the risk of substantial financial losses unless they have underinsured and uninsured motorist coverage.
-
There are options for uninsured motorist coverage which include three types of protection: uninsured motorist insurance, uninsured property damage coverage, and underinsured motorist protection.
As you review your auto insurance policies and shop for better and cheaper coverage, make sure that you have enough protection for your needs. Simply satisfying your State’s bare insurance minimums is not always your best financial option in context to your daily life. Make sure you are insured in the event of an accident, to avoid all potential financial losses.
Has Your Daily Life Changed?
In the answer to this question, you may find along the way that you want higher car insurance protection — or even qualify for savings. Maybe you had a young driver move away from the home and you haven’t updated your family’s auto insurance coverage to reflect that change? Or perhaps you actively carpool to work, school, or general activities? Did you move? Did your commute become shorter? Do you park in a garage now? To recognize and gain any potential savings you may need to shop for new quotes here and there. Getting a quote online generally takes less than 10 minutes.
What Happens If I am In an Accident and Uninsured?
In most states, one out of every eight drivers do not have auto insurance. It is crucial to check your policy before purchasing it to make sure you’re covered and protected. It is also important to note that if you are involved in a serious accident with someone on the road who has no protection and does not carry auto insurance, you may deal with the risk of substantial financial losses unless they have underinsured and uninsured motorist coverage.
Some states also provide programs that assist low-income drivers, to help ensure that everyone can obtain and have the option to have auto insurance.
Uninsured Motorist Coverage
There are three options when dealing with different types of protections:
- Uninsured Motorist Insurance: this coverage can help assist with medical bills for you or your passengers, if involved in an accident that was not your fault. It can also help cover you if you are a pedestrian and hit by an uninsured driver.
- Uninsured Motorist Property Damage: this coverage can help pay with any damages to your vehicle caused by an uninsured accident as well as any personal property that is damaged.
- Underinsured Motorist Protection: this coverage will kick in if the existing policy does not cover the full damage to your vehicle.
If you have purchased a home since you first purchased your auto insurance policy, you may want to consider upping your Bodily Injury and Property Damage Liability coverage levels. According to the Insurance Information Institute, if you own a home and make more than $75,000 a year, most insurance experts recommend that you own at least $100,000/$300,000 of Bodily Injury coverage and $100,000 total of Property Damage Liability coverage.
Sources: