Why You Need Uninsured/Underinsured Motorist Coverage

Here at Longevity Brokers, we understand that buying insurance can be a confusing process. There are dozens of different policy types and additional riders that you can add on to every policy, and auto insurance is no different. You’re required to have coverage, and a lot of people go with the most basic coverage, and they assume that it’s enough. If you’re one of those people, you could be putting yourself at serious financial risk.

Adult upset driver man in front of automobile crash car collision accident in city roadHaving car insurance is extremely important, in fact, law requires it. It protects you from having to shovel out thousands and thousand of dollars in case of an accident. Because the law requires auto insurance, there is a lot of confusion surrounding “uninsured/underinsured” motorist coverage. If everyone is supposed to have a car insurance policy, why would you need coverage for that? The problem is that while everyone is supposed to have insurance, not everyone does. In fact, one in eight drivers don’t have basic auto insurance coverage.

Uninsured/underinsured coverage is probably the most misunderstood aspect of auto insurance. Many people assume that their basic insurance plan will give them enough coverage in case of an accident, but that mistake could cost them thousands of dollars. It’s important that you understand what this coverage does and how it can benefit you. Having adequate auto insurance coverage is just as important as having life insurance or homeowner’s insurance.

How Uninsured/Underinsured Coverage Works

Let’s say that you’re driving home from work one day, and a person pulls out in front of you. You slam on your brakes, but you aren’t able to stop in time. You slam into the side of the car. Well, it’s their fault for pulling out in front of you. You’re upset, but you won’t be paying for the damages, so it could be worse, or could it? What if the other person doesn’t have car insurance? Your collision coverage won’t be enough. You could be left paying for all those repairs yourself, but this is where uninsured/underinsurance coverage comes in.

This coverage helps pay for the damage that the other insurance company would have paid for. It helps pay for all of the repairs and related costs that you would be paying for out-of-pocket otherwise. Because one in every eight motorist doesn’t have basic insurance, there is a one in eight chance that you could have your savings account drained because you’re responsible for paying for car repairs and medical bills. These riders work much like a liability insurance policy. They protect you from costs that you couldn’t control or that you have no fault in. You can’t control what other drivers are going to do, but you can protect yourself from any costs from their mistakes.

What Uninsured/Underinsurance Coverage Pays for

It’s important to understand what the additional coverage is going to pay for. Each state is going to have different coverage types, and some states even require that you have uninsured/underinsurance coverage. These coverages will pay for expenses related to underinsurance/uninsured motorist injury and property damage.

One of the best examples of how this additional coverage can benefit you, is if you’re involved in a hit-and-run accident. In those situations, your insurance is the only insurance on file.

If you’re in an accident with someone that doesn’t have auto insurance, you can quickly rack up thousands of dollars in medical bills, lost wages, legal fees, and much more. It’s easy to see why having additional coverage through underinsurance/uninsured is so important.

Do you need Uninsured/Underinsurance Coverage?

Some states REQUIRE you to have uninsured coverage, and in these states, you should obviously get the coverage. 19 different states across the U.S. require drivers to have a certain amount of additional coverage, but just because you don’t live in one of these doesn’t mean that you should automatically skip of the supplemental coverage. There are several other things you should ask yourself about your auto insurance.

The first question is can you afford NOT to have that coverage? Imagine that you’re in an auto accident with someone tomorrow, and that person doesn’t have auto insurance, or they drive off before you can get their license plate number, and you don’t have the supplemental insurance policy coverage. Think about how that is going to impact your bank account? If you’re injured and have any hospital bills, those are going to be coming out of your pocket.

At Longevity Brokers, we are dedicated to ensuring that you get the insurance coverage that you need. We can help you get adequate auto insurance and any additional coverage that you need. Auto insurance is just one of the several quality insurance products that we provide to the Denver, CO. area. If you have any questions about uninsured/underinsured auto coverage, please contact us today. We would be happy to answer those questions for you. Don’t let another driver drain you of your hard earned money, protect yourself with adequate coverage.

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