What Does Uninsured Motorist Coverage Get Me?
Liability insurance is required by state law. Financial Responsibility is when a person is required to have enough money or assets to pay off damage costs in case of accident and they are not covered by auto insurance. Every car must be insured; otherwise you could go to jail or face fines.
In most states, mandatory liability insurance is an excellent public policy. Somebody who has been a victim of an accident may recover their expenses through the person who is at fault. However, car accidents might cost more than liability insurance could cover.
Not everyone follows the law regarding liability insurance. Car Insurance can cost so much that not all drivers can afford to purchase one, not even a basic liability policy. According to research, one out of 6 drivers is uninsured. It’s practical to hold on to an uninsured motorist or UM and underinsured motorist or UIM coverage.
Uninsured Motorist will pay for the damages caused by an accident occur and you’ve been hit by a hit and run driver or a driver with no insurance. Underinsured Motorist coverage is when an accident occurs but the person who is responsible does not have enough coverage for all the costs. Uninsured motorist and Underinsured motorist coverage also pay for lost wages if you are forced to stay at home due to your injury.
Health insurance can pay for medical bills that are related to an accident if both parties are uninsured. If a person has UM/UIM coverage, health care expenses will be paid as soon as the insurance kicks in.
However, health insurance does not cover lost wages in case you missed work because of injuries from the accident. The driver, who is at fault, will be the one responsible for lost wages, pain and suffering and other expenses that might have been incurred.
An uninsured motorist property damage insurance can also be added to an auto policy. If an accident occurred between an uninsured motorist and the victim does not have coverage, the only option is to bring the case into court. From here, you can ask for claims regarding the damages. However, this will not be a wise move because hiring an attorney alone can cost a lot. The expenses might be more than what you will be getting from the other driver.
Before an insurer can file a claim, insurance company is sure to look into this matter. They need to confirm that the other driver is either UM or UIM and that he caused the problem.
It is still a good idea to buy an uninsured motorist and underinsured motorist coverage even if you are residing in a no – fault state. In a no-fault state, the claim should be filed to your insurer, even if it wasn’t your fault. In addition, there are restrictions in suing the other party. If the case meets certain conditions, then a driver may be allowed to sue the other party. If in case he suffered from severe injuries, pain and suffering. If the other party in uninsured or underinsured and the suing party win, it’s possible that nothing will be collected.