It’s called uninsured motorist coverage. It is important to think about automobile insurance, homeowners’ insurance or any type of insurance you buy as a series of individual policies.
You may hear people say, “I’ve got full coverage,” but what does that mean? Typically, insurance policies are divided into two categories, one being at-fault policies, which are designed to protect personal assets should you be involved in an automobile accident.
There are a series of no-fault policies and the most important of these is uninsured/under-insured motorist coverage. This type of policy protects you if you get hit by someone with no insurance or not enough insurance.
The minimum insurance requirements for drivers differ from state to state. According to the Insurance Research Council, around 13% of motorists, or one in eight drivers, are uninsured. Paying for uninsured motorists is a problem for those who follow the compulsory insurance laws. The costs are passed on to those who follow the laws to pay for those who do not.
So the chances are, if you are in an accident, the person who hits you either doesn’t have insurance or doesn’t have enough insurance to cover the damage they cause. This is why it is important to have a uninsured/under-insured policy to make up the difference for anything over and above what is covered by the other person’s policy.
In many accident cases clients are in motor vehicle collisions where they are hit by someone who is either not covered or has let their coverage lapse. It is tough when you don’t have the uninsured/under-insured policy because you will have injuries and damages and no way to recover for your suffering.
If you are unsure as to whether or not you have this coverage, contact your insurance company to find out. If you don’t have it, it is a good idea to add it just in case you find yourself on the receiving end of an accident with an uninsured motorist.
If you have legal questions and would like to speak with an attorney, please consult our Online Legal Directory to find someone in your area.