Uninsured And Underinsured Polices

Although nearly every state requires that drivers carry at least liability insurance for their cars, the fact is that many do not. In some cases, uninsured or underinsured drivers can cause damage to your car, and then either don’t have enough in their policy to cover the damage or don’t have a policy at all, leaving you with no way to recoup the cost of the damages. This is a strong case for buying insurance that includes uninsured/underinsured motorist coverage.

Uninsured and underinsured coverage is not a separate policy. It can be included in your regular car insurance for additional fees. You might look at these additional monies and decide it’s not worth the price, but you have to think about the cost of NOT holding this sort of policy. Are you prepared to pay for damages to your car when an accident is not your fault? Even the most careful drivers are at risk. You wouldn’t want to regret your decision later.

Even in states where underinsured and uninsured policies aren’t a requirement, you should carry this policy. This kind of insurance doesn’t just cover you, it covers the passengers in your car, or anyone you list on your policy as an approved driver. This type of policy doesn’t just cover damage to your car, either. It can cover hospitalization, damaged or destroyed property replacement, and disability. The cost of an uninsured or underinsured motorist policy costs a lot less money than paying for the damages an irresponsible driver can cause.

?I already have that coverage?, you think. ?My policy covers hospitalization, property damage, funeral costs, and more?. Your regular auto insurance policy usually covers these things for accidents that are your fault. But if you aren’t at fault, the person who caused the accident is in charge of paying the bills. If that person has no insurance, they have to pay for it all outright. Unfortunately, people who can’t afford insurance can’t afford your hospital bills, either. This means you’ll have to pay those costs yourself, and can you really afford that?

The limits for this kind of coverage are generally similar to the other limits in your basic liability coverage. Some companies may have minimums required for uninsured motorist coverage, and some will allow you to increase your coverage to equal the limit on your liability coverage.

The uninsured-underinsured coverage includes provisions to protect you from the financial devastation that would result from having to bear the costs relative to an accident involving an inadequately insured driver and is a valuable stress reliever.

Your dollar-amount limits for this kind of policy is usually the same as your regular boundaries. Like with regular policies, some companies might have minimum and maximum amounts they require.

Susan Reynolds is a content coordinator for a leading South African Insurance Provider that specialises in Car Insurance Policies.