Uninsured Motorist Coverage – Underinsured Coverage

Uninsured motorist coverage is a must even if it’s not required by law. Every state has addressed the problem of uninsured drivers not being able to take responsibility for the damages they cause to other people when they hit them in car collisions. They have done this by requiring that anyone who wants to exercise their privilege to drive purchase insurance to pay for any bodily injuries or property damages they cause. Even though it’s the law to do so, some people dare to drive without auto insurance.

What Uninsured Motorist Coverage Does

Uninsured motorist bodily injury coverage will take over the responsibility of the injuries suffered by people hurt in a car collision. Sometimes, people break the laws of their state and don’t purchase liability coverage before they begin to drive their vehicles. After they have caused an accident and are unable to pay everybody’s medical bills, if you have uninsured motorist coverage, you will be able to file a claim with your own insurance company.

The uninsured motorist coverage covers the person who purchased the policy, anyone who was riding in the vehicle at the time of the accident and anyone named on the policy. It comes into effect after the vehicle has been hit by someone without insurance or someone who decided to run away after hitting the car.

Bodily injuries resulting from the accident will require that you visit the hospital or attend several visits with doctors to obtain treatment. All of these medical bills will be paid by the uninsured motorist coverage. If you or your passengers were to pass away during the car collision, funeral expenses will be covered, also.

What Underinsured Motorist Coverage Will Do

Underinsured motorist coverage relates to people who have acquired the insurance that they are required to have by their states. They have purchased bodily injury and property damage liability at the limits that their states have set, but it’s not enough to cover all the medical bills of everyone hurt in the car collision.

Underinsured motorist coverage is for the policyholder, people riding within the policyholder’s vehicle who were hurt and everyone named on the policy who experiences damages after an underinsured motorist strikes your vehicle. The underinsured motorist’s liability coverage will pay for your medical bills until the insurance runs out and then your underinsured motorist coverage covers the rest until it runs out.

Uninsured Motorist Property Damage

After your vehicle has been hit, you will want to have it repaired, but if you have to wait for an uninsured motorist to pay for it, the repairs aren’t going to be done in a timely manner. Uninsured motorist property damage coverage pays to repair your vehicle in these circumstances.

Underinsured Motorist Property Damage

After the underinsured motorist’s insurance company has paid its portion of the repair bills on your vehicle, there may be something left over on the bill. You can sue the other driver, but this can be time-consuming and you won’t always be able to collect the money you need from the other driver.

Underinsured motorist property damage coverage will cover the difference between what the underinsured motorist’s insurance company paid and what is left over of the auto shop’s repair bills.

Which States Require Uninsured/Underinsured Coverage?

States that are no fault states never look for the at-fault party when a car collision has occurred; this is because they would like to reduce the number of times that their citizens sue each other during car collisions. They require that everyone purchase bodily injury liability coverage, but they may also require that their drivers purchase uninsured and underinsured motorist coverage.

Some of the no fault states that require their citizens to purchase uninsured motorist and underinsured motorist coverage are:

  • Kansas
  • Massachusetts
  • Minnesota
  • New Jersey and
  • North Dakota

Why Would It Be A Good Idea To Have Uninsured/Underinsured Motorist Coverage?

Even if your state doesn’t require that you have underinsured motorist and uninsured motorist coverage, it would be beneficial to have it. Every state has several people driving on their roads who don’t have liability coverage to pay any of the medical bills that you will have to pay if you are every hurt by someone in an accident.

There’s also the possibility that the underinsured motorist won’t be able to pay the remainder of the medical bills themselves after their insurance has reached its limits. This would leave you with increasing medical bills to pay, but underinsured motorist coverage prevents you from having to meet that burden.

Uninsured motorist coverage is highly practical. It wouldn’t be fair for you to have to pay mounting medical bills on your own because irresponsible drivers refuse to do what is right and purchase liability coverage. Your uninsured motorist policy can keep you from experiencing any of those types of headaches.