The Importance of Uninsured/Underinsured Motorist Coverage in Auto Insurance

Written By Charlotte Insurance on April 21, 2023. It has 0 comments.

people in a car discussing The Importance of UninsuredUnderinsured Motorist Coverage in Auto Insurance

When you’re looking at those cars sitting alongside yours at a red light, you have no way of knowing how much insurance the other drivers have. Do they have full coverage? Do they meet state minimums only? Or worse, do they not have any insurance at all? While this may seem like it’s none of your business, it will quickly become so if they end up causing an accident that damages your vehicle. Thankfully, you have uninsured and underinsured motorist coverage, right?

What is Uninsured Motorist Coverage?

As the name implies, uninsured motorist coverage covers you should you end up in an accident with a vehicle driven by someone without insurance. If it turns out that the other driver was at fault, your car insurance will pay to have your vehicle repaired.

Usually, if the other driver is found to have caused the accident, their vehicle insurance policy will pay to have your car repaired. Their policy may also cover things like any medical costs if you were hurt in the accident, or even your lost wages if you needed to miss any days of work due to your injuries. However, if they don’t have insurance, you could end up paying for all of these things out of pocket.

If you have uninsured motorist coverage as a part of your vehicle insurance policy, you won’t have to worry about this because your insurance will take care of you. It’s a solid safety net for those just in case incidents.

Underinsured Motorist Coverage

Even if the other driver (who is found to be at fault in the accident) has car insurance, this doesn’t mean that they have enough to cover all of the costs of repairs, medical bills and more. In this particular case, the driver is considered to be underinsured. They might just have state minimum coverage, which isn’t always enough to pay for everything.

What happens when you have injuries, damage to your vehicle, and other expenses related to the accident that the other party’s insurance won’t cover? This is when your underinsured motorist coverage kicks in. Your insurance will take over where the other party’s fails and will cover all of those additional expenses, including medical bills, vehicle repairs, and even lost wages, depending on your coverage.

Basically, underinsured motorist coverage provides a backup, should you end up in a car accident caused by someone who doesn’t have enough insurance to pay for every possible expense. You won’t end up paying out of pocket for the gaps in their coverage.

The Importance of Uninsured and Underinsured Vehicle Insurance

As you can see, uninsured and underinsured vehicle insurance is designed to protect you. If you end up getting into a car accident with someone who doesn’t have enough insurance coverage, or even any car insurance at all, you won’t be left high and dry having to pay for repairs and other things out of pocket. Instead, your own vehicle insurance will take care of you.

Have Questions? Contact Charlotte Insurance

Wondering if you have or need uninsured/underinsured motorist insurance? Contact Charlotte Insurance. Our agents can explore and explain all available options with you and put together the coverage plan that meets your needs.

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