Uninsured or Underinsured Motorists

Charles Goodman Group: Trusted Bedford Insurance Agents

When a motor vehicle accident occurs, after the parties involved check to see that no one is severely injured, the first thing that people do is exchange insurance information. But what happens if the individual who caused the accident either does not have insurance or they do not have sufficient insurance to cover the damages caused? This may be a circumstance where uninsured motorist or underinsured motorist insurance can be beneficial. A conversation with a Bedford insurance agent can help drivers decide how much of each type of coverage they will need.

A basic mistake drivers make is assuming that being insured for a collision with an underinsured motorist and an uninsured motorist are basically different degrees of the same thing. However, both types of insurance are drastically different and provide different types of coverage. A driver must understand these differences in order to avoid liability.

Uninsured motorist insurance provides protection from situations where the policyholder has a collision with an individual who does not have insurance. In times past, the only way for someone to get compensation in situations like these was to go to court. However, in recent years, the court realized that rising medical costs and expensive automobile repairs meant that many uninsured drivers would not have the financial resources to provide sufficient compensation for the accident they caused. As a result, many states have made it a requirement for drivers to carry uninsured motorist coverage.

A trusted Bedford insurance agent from the Charles Goodman Group can assist you with any questions regarding health insurance or life insurance.

Even in states where this is not a requirement, drivers may want to consider purchasing uninsured drivers coverage to protect themselves from unnecessary liability.

Underinsured drivers coverage is designed for when an at-fault driver does have some automobile insurance. However, their policy is not enough to cover the cost of the accident. This is something that is happening with more frequency because the basic liability requirements required by the state are not enough to cover the cost of collisions involving expensive vehicles. Underinsured motorist insurance will cover medical expenses and repair expenses that the underinsured driver’s insurance will not pay. Many view this form of insurance as a way to fill the gap between what the underinsured motorist policy will pay and the actual cost of damages.

The major difference between underinsured and uninsured insurance is that many states require uninsured motorist insurance, whereas underinsured insurance is optional. Drivers who are looking to create a policy that will adequately cover their insurance needs should speak to their insurance agent about getting both types of coverage. While it will mildly increase annual premiums, it can potentially save a driver tens of thousands, if not hundreds of thousands, of dollars in liability when an accident takes place with an uninsured motorist.