Is It Compulsory to Have Uninsured Motorist Coverage?

Your basic auto insurance has 5 major coverages. These include personal injury protection, liability, collision, comprehensive, and underinsured/uninsured. Some are designed to protect another motorist from you (liability coverage), while some are there to protect you from other motorists. One such coverage designed to protect you from other motorists is the uninsured coverage.  This article summarizes what uninsured coverage is and whether or not it is important to have it.

What Do You Mean by Uninsured Motorist Insurance?

You having insurance is not a guarantee that other car owners have insurance. Uninsured motorist coverage is an insurance plan that covers policyholders from any damage caused by an uninsured driver.

Types of Uninsured Motorist Insurance

There are two main forms of uninsured motorist coverage:

  • Uninsured Motorist Bodily Injury Liability

It covers the cost of any bodily injury suffered due to a collision with an uninsured motorist. It covers medical costs and lost wages caused by the accident to you and any other passengers in your car at the time of the accident. However, this coverage has a per person and a per accident limit.

  • Uninsured Motorist Property Damage

This insurance coverage plan pays for damage to your property and vehicle caused due to an accident with an uninsured motorist. This form of coverage is not available in every state.

Why Do You Need to Purchase Uninsured Motorist Coverage?

Not all drivers have this insurance, partly because some states, e.g., Texas, do not make it mandatory to have one. However, about 10% of drivers do not carry car insurance, and several others only purchase the minimum coverage required. By not purchasing uninsured motorist coverage, you are exposing yourself to financial damages resulting from an accident with an uninsured/ underinsured driver while you are on the road, making it extremely difficult to get proper compensation for damages, medical bills, lost wages, etc., resulting from the accident.

What Happens When You Don’t Have this Coverage?

In states where having this policy is compulsory, it may be slightly difficult not to have it because it comes with your policy. The only to avoid it is not to have auto insurance which is a punishable offense. Additionally, you will have to pay out-of-pocket for the repair and damage cost when you don’t have it and are involved in an accident with an uninsured driver.

How Much Does Uninsured Motorist Coverage Usually Cost?

Apart from the National average, every state has its average insurance coverage rate. However, some factors affect this rate, like what has been covered, your deductible, and your insurer. You may need to increase your insurance rate above the state average for adequate coverage that would pay for replacing your vehicle, damage to your property, medical bills, etc.

How Does Uninsured Motorist Coverage Plan Function?

Like every other insurance, you need to purchase a policy and select a deductible. It covers not just you, but also other members of your family and even a friend driving your car with your permission. If you are involved in an accident with an uninsured driver, your coverage will activate when your damages go beyond your deductible amount.

What Does an Uninsured Motorist Coverage Plan Cover?

  • Personal belongings inside your car during the accident
  • The depreciated value of the vehicle after repair from an accident
  • Medical expenses
  • Lost wages
  • Hit-and-run
  • Damage to personal property

Accidents cannot be predicted, and the risks of driving on the same road with an uninsured motorist cannot be completely avoided.  Pierce Insurance is here to help you in such situations. We provide uninsured motorists coverage at affordable rates, customized to your requirement. For any queries and to get a quote, contact our team of auto insurance experts today!