What Is Uninsured Motorist Coverage?

What Is Uninsured Motorist Coverage?

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Liability auto insurance coverage is mandatory in all states except for New Hampshire, but not everyone complies with the law and carries adequate insurance coverage when driving. Even though you can face heavy fines and even a prison sentence for driving without car insurance, some people still do drive without insurance and end up in an accident that costs thousands of dollars in damages.

Uninsured motorist coverage protects drivers who are involved in an accident with someone who does not have insurance. It is an option when applying for insurance, so it is in your best interest to carry it even when you have adequate liability protection. You should consider getting a general liability insuranceto protect your business and your vehicle as well. Being insured gives you a sense of financial safety as well. So, here are the outcome of buying a uninsured motorist coverage.

Purchasing Uninsured Motorist Coverage

If you don’t have health insurance or live in an area where most drivers may not carry insurance, it is in your best interest to purchase uninsured motorist coverage as an extension of your existing insurance policy. Only some states actually require drivers to have this type of insurance coverage, but most states do not. Ultimately, this type of insurance coverage will protect you financially in the event of a serious accident with an uninsured motorist.

When you file a claim and have uninsured motorist coverage, your claim can be settled as quickly and efficiently as possible, and you can receive your claim checks for medical bills, car repairs and other costs associated with the accident in a short time period.

It’s important to remember that uninsured motorist coverage pays for all medical expenses up to the limit on the policy, but may not provide coverage for damages to property. Some insurance companies do offer uninsured property damage coverage options or underinsured property damage coverage as an extended insurance coverage option.

Benefits of Having Uninsured Motorist Coverage

Uninsured motorist coverage provides protection in several situations and can pay for lost wages, medical expenses and other collision or accident-related expenses that the offending party cannot pay for because of a lack of insurance. Some of the top benefits of having uninsured motorist coverage are that it:

– Pays out lost wages and pain and suffering associated with the accident.

– Covers the insurance policyholder, other drivers covered by the policy and passengers in the vehicle.

– Pays up to the limit the policyholder purchases.

– Offers adequate protection for individuals without health insurance.

– Provides coverage for bodily and personal injuries, damages or death caused by a driver who is uninsured, or by a hit-and-run driver.

Uninsured motorist coverage can be beneficial whether you live in a no-fault state or not. This type of “excess coverage” can provide reimbursement for pain and suffering associated with the incident when certain conditions have been met, and provides protection that you may not have with your regular insurance plan.