Uninsured and Underinsured Motorist Coverage

Jul 21

For U.S. drivers to be able to renew their driver’s license and car registration, they will have to prove that they carry auto liability insurance. Besides these, having coverage will also keep their license from being suspended, their driving privilege from being taken away, and the drivers themselves from being issued a traffic ticket for violation of their state’s mandatory insurance law. Getting involved in a car accident, however, which happens to be an uninsured driver’s fault, can result in big financial trouble for them.

To make sure that drivers are fully protected, especially from uninsured drives, some states require them to also carry either or both the Uninsured motorist (UM) coverage and Underinsured motorist (UIM) coverage. Uninsured motorist coverage is designed to cover the economic losses and damages suffered by victims in accidents wherein the at-fault driver does not carry insurance. This coverage also serves as a perfect financial safety net in the event of hit-and-run accidents, as well as in accidents wherein a stolen vehicle is involved.

Underinsured motorist coverage, on the other hand, is designed as a supplement for any insufficiency in the policy limit of an at-fault driver. This is usually the case if the at-fault driver carries only the minimum liability coverage required in his or her state. This makes the amount of his or her policy not enough to cover the full amount of damages suffered by the victim.

The mandated auto liability insurance, with the addition of UM and UIM, plus the many other factors considered by insurance providers, such as a driver’s age, driving history, driving experience, and type of car used, make insurance policies just too expensive for millions of drivers. It is because of this that many drivers rather risk driving uninsured than pay costly premiums.

According to Abel Law Firm, however, not carrying auto insurance can be more disadvantageous for a driver, especially if he or she causes an accident. Insure on the Spot is one of the many independent car insurance firms which offer clients free online insurance quotes which will help them compare different insurance deals for the purpose of finding the best, yet cheapest, policy. With help from an independent car insurance firm, getting insured is not only cheap; it is also fast and definitely easy.

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