Do You Really Need Uninsured And Underinsured Motorist Coverage?

Posted on: 10 February 2020

If you look at your auto insurance policy or need to buy a new policy, you might come across coverage types that are called uninsured and underinsured motorist coverage. Do you know what these are? Are you wondering if you really need them? Here are some answers for you if these are questions you have about uninsured and underinsured motorist coverages.

What They Are

Uninsured motorist and underinsured motorist are very similar types of coverages, yet they are very unique when compared to other types of coverage you can buy on your auto insurance policy. Uninsured coverage refers to coverage you can purchase to protect you if an uninsured driver is responsible for causing a collision you are involved in. Underinsured coverage kicks in when you are involved with a collision with a driver who had insurance, but not enough insurance.

As you can see, both types are designed to protect you from other drivers and their lack of insurance coverage, and both are important.

Why You Need Them

It is hard to say just how many people are out on the roads each day either without any insurance at all or with coverage that is extremely minimal. Because you could easily encounter a driver without coverage, you need protection, and this is the way to get it. If you did not have it and were a victim of a collision, you could experience problems collecting compensation for the damages to your car, your medical bills, and other expenses. If you did have this coverage, though, your insurance company would compensate you for all of these things and anything else you were entitled to receive compensation for.

The Costs for Adding Them to Your Policy

When you buy these coverages, they generally come together. In other words, you would not likely buy one type and not the other. Instead, you would buy them both, and the costs are generally very affordable. The average cost for adding these coverages is around 5% of your policy amount. If you pay $1,000 per year for auto insurance, adding these coverages might cost around $50 extra per year.

As you can see, it will not cost a lot to add these coverages, yet having them will be very handy if you ever get in an accident with a driver who does not have sufficient coverage. Talk to a car insurance agent to learn more about both types.