Uninsured/Underinsured Motorist Coverage
Car insurance provides drivers protection in the event of an accident. The importance of having insurance is not realized until the unfortunate event of an accident. Laws in most states require drivers to have insurance policies that include liability coverage. While some drivers do not have the required coverage there are those who do have liability yet they have insufficient limits to cover damages when they are at fault. For this reason, it is very important to have coverage that will protect you in case of an accident involving you and such drivers to be a provision in the insurance policy. In the industry this type of coverage is known as uninsured-underinsured motorist coverage.
The uninsured-underinsured provision is an add-on to the basic policy for an additional premium. You might think the provision is an unnecessary expense; however, it is well worth the cost if there is an accident. Although there are additional premium involved, the coverage will pay for itself in the event you are involved in an accident and the other driver is underinsured or uninsured. Obviously those are not ideal circumstances but it is good to know that you are covered just in case.
Even in states where underinsured and uninsured policies aren’t a requirement, you should carry this policy. This kind of insurance doesn’t just cover you, it covers the passengers in your car, or anyone you list on your policy as an approved driver. This type of policy doesn’t just cover damage to your car, either. It can cover hospitalization, damaged or destroyed property replacement, and disability. The cost of an uninsured or underinsured motorist policy costs a lot less money than paying for the damages an irresponsible driver can cause.
This is especially important for drivers who only have liability insurance: although your insurance will cover any costs for property damage or personal injury that you may cause to yourself or another person if you are the at-fault driver, liability alone will not cover any damages caused by someone else.
The limits for this kind of coverage are generally similar to the other limits in your basic liability coverage. Some companies may have minimums required for uninsured motorist coverage, and some will allow you to increase your coverage to equal the limit on your liability coverage.
The uninsured-underinsured coverage includes provisions to protect you from the financial devastation that would result from having to bear the costs relative to an accident involving an inadequately insured driver and is a valuable stress reliever.
When buying new insurance or renewing your old policy, be sure to ask about optional coverage options such as this. There are many studies and statistics which show that the number of deaths from car accidents is quite high, and it would be unfair to you and your family not to protect yourself against the possibility of this kind of devastating financial burden. Look into uninsured motorist coverage and find out what it takes to add it to your policy.
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance.
