Being involved in a car accident can be a stressful and frightening experience, but it can be even more challenging if the other driver doesn't have insurance or doesn't have enough insurance to cover the damages. That's where uninsured motorist coverage comes in. In this blog post, we'll explore what uninsured motorist coverage is, why you need it, and how it works.
What is uninsured motorist coverage?
Uninsured motorist coverage is a type of insurance that provides protection for you and your passengers in the event of an accident with an uninsured or underinsured driver. This coverage is designed to pay for damages and injuries that are not covered by the other driver's insurance policy.
There are two types of uninsured motorist coverage:
Uninsured motorist bodily injury (UMBI): This coverage pays for medical expenses, lost wages, and other damages if you or your passengers are injured in an accident with an uninsured or underinsured driver.
Uninsured motorist property damage (UMPD): This coverage pays for damages to your vehicle or other property caused by an uninsured or underinsured driver.
Why do you need uninsured motorist coverage?
While car insurance is required by law in most states, not everyone follows the law. According to a report by the Insurance Information Institute, approximately 13% of drivers in the United States were uninsured in 2015. If you're involved in an accident with an uninsured driver, you may be responsible for paying for damages out of pocket.
Even if the other driver has insurance, their policy may not provide enough coverage to pay for all the damages. In this case, uninsured motorist coverage can help cover the difference.
How does uninsured motorist coverage work?
If you're involved in an accident with an uninsured or underinsured driver, you'll need to file a claim with your insurance company. Your insurance company will then investigate the claim and determine the amount of damages you're entitled to.
If the other driver is found to be at fault and uninsured, your insurance company will pay for the damages up to the policy limits. If the damages exceed the policy limits, you may be responsible for paying the remaining balance.
It's important to note that uninsured motorist coverage is not a replacement for liability insurance. Liability insurance is designed to protect other drivers and their property in the event that you're at fault for an accident. Uninsured motorist coverage is designed to protect you and your passengers in the event of an accident with an uninsured or underinsured driver.
In conclusion, uninsured motorist coverage is an essential type of insurance that can provide peace of mind knowing that you're protected in the event of an accident with an uninsured or underinsured driver. If you're considering purchasing this coverage, reach out to one of our insurance agents at Community Insurance Solutions to understand the coverage options available to you and to determine if this coverage is right for you.