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Last Updated: Mar 26th, 2006 - 13:41:45 |
Types of Car Insurance Coverage: Uninsured/Underinsured Motorist
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May 20, 2005, 15:19
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Car insurance is one of those things necessary in today's world. While many states require proof of insurance before a car can be registered, not all states have this requirement. Some states, while they require liability insurance at the very least, do not actually enforce this law until there is a car accident. And by then, it is too late to protect yourself.
Additionally, even in states that do require proof of current insurance before registration, there is nothing to prevent an unscrupulous driver from getting in an accident with expired tags and no insurance. Even if he or she is arrested, it is small consolation when you are stuck with paying for the damages.
Another problem is a motorist whose insurance limit on liability is too low to cover damages. While it will help you, you may still be stuck with a large financial burden that is not your fault. The best way to protect yourself is to get coverage called uninsured/underinsured motorist.
Having uninsured/underinsured insurance means that if you are in an accident caused by someone else, and they do not have the insurance to cover the damage they cause, you can file a claim with your company to receive compensation. Depending on the amount of coverage you have, your insurance company can make up the difference. This can save you from complete financial ruin in the event of a costly accident.
It does not seem to fair to have to pay for something that is not your fault, and illegal to boot, but sometimes life is not always fair. You should evaluate your circumstances and decide if having this coverage is worth the cost. Usually, if you are buying other types of insurance as well, getting uninsured/underinsured motorist coverage does not add too terribly much to your premium. And, like other types of car insurance, the amount of money you expect the insurance company to pay out determines your premium.
Get "the whole package" of car insurance can seem very expensive. After all, there are different coverage options, you cannot just get "insurance" and expect it cover everything. You have to choose which types of coverage you want. But, if you are a good driver, and if you purchase other policies (home, life, and other insurance), you can receive special discounts that can lower your premium costs.
These factors combine to actually make a rather interesting insurance plan. You can tailor your coverage to match your needs. You can decide which types of coverage (beyond required liability) that you need. While you might not be able to control what another driver does, and whether or not he or she obeys the law, you can protect yourself. Having uninsured/underinsured motorist coverage is a good place to start.
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