While there are several different types of add-on coverage that you can choose to purchase as part of your auto insurance plan, uninsured/underinsured motorist coverage is arguably the most valuable of these coverage options. This is because this type of auto insurance will ensure that you are protected in a wide variety of accident scenarios. Continue reading to learn more about how this coverage works to really ensure you are adequately protected from a financial loss in the event an accident occurs.
Protection Against Hit and Run Accidents
In a perfect world, the at-fault driver would always stop and take responsibility for the damage that they caused by hitting your car. Unfortunately, as the cliché says, this is not a perfect world. In some cases the other driver may choose to flee the accident scene to try and escape being held responsible or to avoid getting in trouble with the law if they do not have a valid license or insurance. In these hit and run cases, you will be stuck paying for all out-of-pocket expenses if all you choose to carry is standard liability auto insurance. However, this damage will be covered if you have chose to also purchase uninsured/underinsured motorist coverage.
The Other Driver Doesn't Have Insurance
Even if the at-fault driver does not flee the scene after hitting your vehicle, you will not be able to recover compensation for the damage they caused if this driver does not have insurance and is unable to pay for the damages out of their own pocket due to a lack of resources. In this situation, uninsured motorist auto insurance will cover the cost of damages to your vehicle so that you are not stuck paying for these damages yourself.
The Other Driver Doesn't Have Enough Coverage
Many people choose to purchase only as much auto insurance as the law mandates. In the event of a serious accident, this can result in you being stuck with excess property damage or medical bills that are not covered by the other drivers policy limits. While the law does allow you to seek a judgement against the other driver to collect any additional expenses directly from the at-fault driver, effectively collecting this compensation can be next to impossible if the other driver does not have substantial income or assets. When purchasing uninsured/underinsured motorist coverage, this auto insurance will pick up where the other driver's insurance left off. This ultimately ensures that all of your out-of-pocket expenses are covered after an accident.