This article is quick but very valuable summary about underinsured and uninsured motorist coverages -- what is it and why is it so necessary.
In today’s fast-paced world, car accidents happen every day. Unfortunately, not all drivers on the road are insured, and even if they are, their coverage limits may not be enough to cover the damages they cause. That’s where underinsured and uninsured motorist coverage comes into play. Despite being relatively common, many people still do not understand the importance of these coverages. In fact, insurance agents often stress that underinsured and uninsured motorist coverage is among the most important coverage available. Here’s what you need to know.
Uninsured Motorists Are Common
According to the Insurance Information Institute, an estimated 12.6% of drivers were uninsured in 2019. That means that if you are involved in an accident with an uninsured driver, you may be on the hook for the damages. Even in states where auto insurance is mandatory, the number of uninsured drivers remains high. In some states, up to one in five drivers do not carry auto insurance.
Underinsured Drivers Can’t Cover All the Damages
Even if the at-fault driver in an accident is insured, their policy limits may not be high enough to cover all the damages they cause. For example, if the at-fault driver only has the state-mandated minimum coverage, it may not be enough to cover the full cost of medical bills, lost wages, and property damage. In such cases, underinsured motorist coverage can help bridge the gap between the at-fault driver’s policy limits and the actual cost of the damages.
Why Your Insurance Agent Pushes Uninsured and Underinsured Motorist Coverage
Your insurance agent is not trying to upsell you on unnecessary coverage when they suggest uninsured and underinsured motorist coverage. Rather, they are trying to protect you from the financial consequences of a car accident. Uninsured and underinsured motorist coverage can help you avoid having to pay out of pocket for damages caused by an uninsured or underinsured driver. Without this coverage, you could be on the hook for expensive medical bills, lost wages, and property damage. Moreover, with hit-and-run accidents on the rise, uninsured and underinsured motorist coverage can be a lifesaver. If you are involved in a hit-and-run accident, your underinsured motorist coverage can help cover your medical bills and property damage.
Talk to Notable Risk Today
If you’re still unsure about whether you need underinsured or uninsured motorist coverage, talk to Notable Risk today. At Notable Risk, we understand that accidents happen. That’s why we’re dedicated to helping our clients carefully find the right coverage to reliably protect them.
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