Insurance Curator 
The Importance of Uninsured and Underinsured Motorist Coverage
Picture this: you’re driving home from work, minding your own business, when suddenly, out of nowhere, a car comes barreling through a red light and slams into the side of your vehicle. You’re shaken up, but thankfully, you’re not seriously injured. However, your car is a different story. It’s totaled. And to make matters worse, the driver who hit you doesn’t have insurance. Now what?
This is where uninsured and underinsured motorist coverage comes in. It’s a type of insurance that many people overlook, but it can be a lifesaver in situations like the one described above. Let’s take a closer look at why this coverage is so important.
What is Uninsured and Underinsured Motorist Coverage?
Uninsured motorist coverage protects you if you’re in an accident with a driver who doesn’t have insurance. Underinsured motorist coverage kicks in if the other driver has insurance, but not enough to cover the full cost of the damages.
In both cases, your insurance company will step in to cover the costs that the other driver’s insurance should have covered. This can include medical expenses, lost wages, and property damage.
Why You Need It
You might be thinking, “But I have insurance, so I’m covered, right?” Not necessarily. If the other driver doesn’t have insurance or doesn’t have enough insurance, you could be left footing the bill for damages that weren’t your fault.
According to the Insurance Research Council, one in eight drivers on the road is uninsured. That’s a pretty significant number. And even if the other driver does have insurance, it might not be enough to cover the full cost of the damages.
Real-World Examples
Let’s look at a couple of real-world examples to illustrate the importance of uninsured and underinsured motorist coverage.
First, let’s say you’re in an accident with a driver who doesn’t have insurance. Your car is totaled, and you have $10,000 in medical expenses. If you don’t have uninsured motorist coverage, you’ll have to pay those expenses out of pocket.
Now let’s say you’re in an accident with a driver who has the minimum required insurance in your state. Your car is totaled, and you have $50,000 in medical expenses. The other driver’s insurance will only cover $25,000 of that. If you don’t have underinsured motorist coverage, you’ll be responsible for the remaining $25,000.
In both cases, having uninsured and underinsured motorist coverage would save you from having to pay those expenses yourself.
The Bottom Line
Uninsured and underinsured motorist coverage is an important part of any auto insurance policy. It can protect you from financial ruin if you’re in an accident with a driver who doesn’t have insurance or doesn’t have enough insurance.
Don’t overlook this coverage when shopping for auto insurance. It might seem like an unnecessary expense, but it could end up saving you thousands of dollars in the long run.
Conclusion
In conclusion, uninsured and underinsured motorist coverage is a crucial aspect of auto insurance that should not be overlooked. With the number of uninsured drivers on the road and the possibility of underinsured drivers causing accidents, it’s important to protect yourself and your finances with this coverage.
By having uninsured and underinsured motorist coverage, you can have peace of mind knowing that you won’t be left with a hefty bill if you’re in an accident with a driver who doesn’t have adequate insurance. It’s a small price to pay for a big safety net.
So next time you’re reviewing your auto insurance policy, make sure to consider adding uninsured and underinsured motorist coverage. It could be the difference between a minor inconvenience and a major financial setback.