When you have the option of saving a few dollars on your auto insurance, one of the things you might cut back on is underinsured or uninsured motorist coverage. Before you decide to do that, it’s important to think about why that coverage is important and how it benefits you to have it in place.
Uninsured or underinsured motorist coverage does a few things to protect you if you’re involved in an auto collision.
Understanding uninsured and underinsured motorist coverage
Both underinsured and uninsured motorist coverage do different things for people. They provide another level of protection against financial loss in a serious collision and limit the overall cost of out-of-pocket expenses.
If you carry this kind of coverage, you don’t have to worry about getting into a crash with a person who isn’t carrying insurance, because you have insurance that will help cover your own personal injuries and the damages to your vehicle. If they aren’t covered, you’ll still have backup financial support and insurance coverage, in other words.
How much underinsured or uninsured motorist coverage should you carry?
That depends on your circumstances and how much security you want. For example, you may be able to get a policy that gives you $50,000 per accident and up to $25,000 per victim in compensation. Or, you may be able to opt for a larger policy that covers more.
The one you choose should be based on several factors, such as your age and health right now, the cost of your vehicle, how much the average cost of a crash is in your area, the likelihood of hitting someone in your area without insurance and other details. You can contact an insurance agency to discuss more specifics, such as how much a policy can have for its limit and what to do if you’re struck by someone without insurance.
If you don’t carry uninsured or underinsured motorist coverage and are hit, you may be able to fall back on your health care insurance or other policies to get coverage for your injuries. You might also be able to bring a claim against the at-fault driver in court.