The Importance of Carrying Adequate Auto Insurance (Uninsured/Under-Insured Motorist)
No matter how careful you are, an accident can happen at any time. Because of how wildly unpredictable the world can be, we recommend that you make sure your insurance policy covers both Uninsured and Under-Insured Motorist Accidents. Without having coverage in these areas, you could run into a myriad of legal complications and fees. So what is the difference between the two? And who am I responsible for with these coverages?
Uninsured Motorist Accident
This is coverage that will protect you if you are in an accident with an at-fault driver that does not carry liability insurance. Typically, the person that is at fault is supposed to pay for the medical bill, auto damage and lost wages. But if the person at fault does not have any insurance, then the bill will fall into your lap.
Under-Insured Motorist Accident
Unlike Uninsured Motorist Accident coverage, Under-insured coverage is meant to protect you if the at fault driver’s insurance does not cover everything involved with the accident. They will cover whatever they can, then the rest of the bills will fall into your lap.
In both of these cases, you wind up being responsible for something. With Uninsured or Under-Insured Motorist coverage, you will be able to protect you and the people that you care about from one of these unfortunate accidents. The state of California requires that all Uninsured and Under-Insured Motorist coverage provides $30,000 for each injured person and $60,000 for multiple injured people in the same accident UNLESS there is a written waiver or an agreement to lower the insurance’s coverage to $15,000 per injured person and $30,000 for multiple injured people in the same accident. The monetary difference is significant, so it is best to not skimp on your insurance.
While it is great to protect yourself from financial ruin, you can also use Uninsured and Under-Insured Motorist insurance to protect your friends and family. The following groups of people can be covered under this plan.
1. Your Family and Personal Self
You are allowed to place any number of persons that is living in your household on your Uninsured and Under-Insured Motorist insurance, and it will cover you and everyone that was placed on the policy in the event that an accident with an Uninsured and Under-Insured Motorist occurs. Everyone on the insurance will get to enjoy the same coverage as you do.
2. Friends in Your Vehicle
This will cover anyone that is getting into or occupying space in your vehicle at the time an accident with an Uninsured and Under-Insured Motorist occurs. It is important to remember how narrow this clause is; just because your friend is with you at the time an accident is happening does not mean they will be covered under your plan.
3. People you are taking care of
This covers anyone that you are physically responsible for and they get injured in an accident with an Uninsured and Under-Insured Motorist. The type of care matters in this clause. For example, housekeepers are not covered. But an at home nurse that gets injured during an accident with an Uninsured and Under-Insured Motorist will be covered.
As you can see, there are multiple reasons why you should carry Uninsured and Under-Insured Motorist insurance. In the event that you get into an accident with someone that cannot pay or fully pay for the damage that they caused, you should be ready to protect yourself and the people that you care for. Without this coverage, you and your loved ones the people that you care for could fall into deep financial hardship. And this additional coverage adds very little to your monthly premiums so it is definitely worth the peace of mind you will have carrying this coverage on your plan.
It is important to note that even though Un-insured/Under-insured Motorist coverages are obtained through your own personal insurance company, they still require legal representation since it is an adversarial system and requires an advocate to make sure you get the full value of your claim. Our firm has exceptional expertise in dealing with these types of claims and will make sure your rights are adequately protected.