Underground Journal

Uninsured Motorist Coverage – 8 Answers You Need

Not everyone understands why they need to purchase the uninsured/underinsured (UN/UIM) option on their insurance policy. They don’t understand why they should have to pay for something someone else is responsible for. Today, the number of UN/UIM motorists is growing substantially. It has been estimated by the Insurance Research Council that by 2010 the number of drivers that fall into that category will reach at least 16 percent of all drivers. This is a serious situation as it affects all drivers because if they don’t have the UN/UIM options on their policies and they get into an accident with one of these irresponsible drivers, then there is no coverage for damages or injuries.

Following are a number of questions regarding this situation that a lot of people are asking. Many insured drivers don’t know why they have to purchase cheap inexpensive auto insurance on their policy that will cover other drivers who do not have insurance. This type of insurance is to provide protection for you, your loved ones, and other passengers. This insurance provides the money to have your car and medical injuries paid for without having to wait while you try to sue the other party. When you do sue, you might get a judgment, but you won’t get any money if the party doesn’t have any assets. Also, you will not be paying for any injuries or damages received by the uninsured party. Your insurance company will try to recover money from this person with their large lawyer firms that work for the insurance company.

Another question is does UM/UIM pay for property damage in a hit and run accident or damages from a side-swipe while it was parked? If your car is damaged by an unidentified driver, the answer to that question is no. It would be covered under your own Collision coverage, if you have any. Also, people want to know if they need to buy UN/UIM if they have health insurance. It is recommended by all auto insurance companies that you always purchase UM/UIM. This type of insurance covers others things like your salary if you missed work due to the accident, and also pain and suffering.

Some insureds want to know will happen if the other driver denies fault. The denial of the other driver is not enough, your insurance company with perform a detailed investigation and decide the fault in the accident. Another point not always understood by the insured is that they cannot make a claim against another driver’s UM/UIM coverage. This coverage is to protect the person who purchases the option on their policy from someone who doesn’t have auto insurance.

The option of whether or not to purchase Collision or UM/UIM is another thing that not all insureds understand. If you purchase Collision you are covered for all situations regarding accidental damage. If you just purchase UM/UIM you are only covered if you are in an accident with an uninsured driver. The best scenario would be for you to purchase both types of coverage. The main reason for this is that you have to be able to identify the uninsured motorist in order for your insurance company to pay for any property damage. It is different in the case of bodily injuries, which are covered under your UM/UIM coverage.

(0) Comments Permalink