Operating a vehicle comes with various risks. It's hard to predict the road conditions and the behavior of other drivers. Auto insurance protects you while you navigate those risks. However, an accident can occur at any moment. If you are hit by a driver who does not have insurance, uninsured motorist coverage will prove to be an asset.
You can rely on underinsured motorist coverage limits when you are in an accident with someone who does not have enough insurance to cover your damages. The underinsured motorist coverage limits ensure that your losses are covered regardless of the other party.
There are multiple reasons why you purchase auto insurance. Generally, you want financial protection if your vehicle is damaged or if you are held liable for injuring someone or damaging their property. What happens if you plan to file a claim against the other driver, but you couldn't collect any damages because they don't have coverage? If you try to go after their assets, they may file for bankruptcy. You can add coverage to your auto insurance to protect you in such situations. Any injuries to your family members or another passenger in the vehicle are also covered. If you plan to file a claim, the endorsement will cover the gap between the amount paid by the other driver's insurance and the full amount.
Remember that underinsured motorist coverage differs from uninsured motorist coverage. Uninsured coverage protects you if the other driver does not have insurance at all. The two policies are often available as a bundle. Many analysts point out that the coverage provides significant benefits at a relatively low price. These types of coverage have risen in demand because there are a growing number of underinsured drivers currently on the road. Operating a vehicle without insurance is illegal in almost every state. That's why most drivers at least opt for underinsured coverage. Keep in mind that many states have a unique definition for what underinsured coverage is. A driver may not have enough insurance to cover someone's damages if they are involved in an accident. They could also have coverage but low liability limits which leave them unable to cover any medical bills or repairs.
Uninsured and underinsured bodily injury coverage protects you if you or a passenger in your vehicle is injured in an accident, and the other party cannot cover your lost wages and medical bills. Consider researching Personal Injury Protection and Medical Payments Coverage as well.
Uninsured Property Damage and Underinsured Property Damage cover you if someone damages your vehicle and they don't have coverage to pay for the repairs. The extra coverage can also help cover any deductibles or rental car costs. In some states, the extra coverage is automatically added to your policy.
If you have multiple vehicles on your auto insurance policy, you may opt to stack your uninsured and underinsured coverage. Your limits would be altered based on the number of cars on the policy. It's important to note that stacking is illegal in some states.
Most underinsured motorist endorsements last for a year. If you have any questions regarding your auto insurance policy, our team at Little & Sons Insurance Services is here to assist you.
