We’re all looking to save money on our car insurance (or at least are told to be), but the process is continually made more difficult, as it seems like insurers are constantly adding more coverage options.
Liability, comprehensive, collision, med pay, PIP, rental, towing, GAP, death benefit…where does it all end?
And how do you know if the coverage you are buying is legitimate? You want to be adequately covered, but don’t want to pay for unnecessary insurance.
In short, auto insurance is designed to protect you against financial hardships you may be subject to as a result of causing another party bodily injury or property damage…but what happens if you are injured or your property is damaged as a result of another person’s negligence?
Uninsured motorist coverage is one of the most important and often misunderstood coverage types available on a personal auto policy.
It protects you against financial loss caused by another person who does not have insurance. Don’t think you need it? Note that approximately one in six Americans drove without insurance last year.
If an uninsured driver injures you or damages your car and you do not have this coverage in place, you could be out of luck.
Of course, you have the option to sue the negligent party for damages, but if they don’t have insurance, which is mandatory in most states, what are the odds of seeing any money via a lawsuit?
How will you get to work or pay your medical bills while waiting for your money? Do you think creditors will give you a break on your bills if you explain you were injured by an uninsured motorist? Think again.