Preparing for the Worst
It’s every driver’s worst nightmare! You’re in an accident and the other driver doesn’t have enough insurance to cover the damages. Don’t panic…this scenario actually happens more often than you may think. Luckily, there is a contingency plan that you can get to make sure that you’ll be fully protected. It’s called “uninsured and underinsured motorist coverage.”
The main costs associated with auto accidents are damage to the vehicle and injuries incurred. As the name implies, underinsured motorist coverage pays the difference between the costs of the actual damage vs what the at-fault motorist actually has coverage for. It balances the bill to make sure the innocent party doesn’t get stuck footing the cost. If the other driver has no coverage, uninsured motorist coverage will take care of the entire bill, depending on the circumstances.
Sign Me Up!
No one wants to be caught in this dreadful scenario without a back-up plan. You can’t control if other drivers on the road choose to be irresponsible or lack adequate coverage. However, you can protect yourself by being aware and planning ahead. The good news is that it usually doesn’t cost much to add this coverage to your plan if it isn’t already included. Some states require uninsured and underinsured motorist coverage and some don’t. Double-check your coverage now to make sure you won’t be caught off guard in the event that this happens to you.