Two motorists get into an accident and begrudgingly pull themselves out of their cars and exchange information. When the at-fault motorist’s insurance is contacted, however, it’s found that their insurance has lapsed, meaning the victim in the accident has to pay for their bodily injuries and their repairs as well. Sitting on the hook for $25,000, the motorist wonders why he didn’t expand his coverage beyond simple liability.
Even though the law in most states requires basic liability coverage to drive legally, this coverage is often not enough to cover bills in an accident. Worse yet, it won’t pay a single cent for your bodily injuries or property damage to your car. Fortunately, there are additional types of coverage you can add to your policy that will improve your protection and prevent a financial catastrophe in the event of a motor vehicle collision.
Let’s take a look at how expanding your coverage can help you feel secure on the road.
The Risk of Underinsured and Uninsured Motorists
Right now, about 10-15% of all motorists on the road either have not enough insurance or no insurance at all. In an accident, your bills will be completely on you, and that can be tens of thousands of dollars in hospital costs and repairs to your car.
Additionally, because of the pandemic, many insurance companies are offering lenient premiums options, like deferred payment plans. These are fantastic for motorists, but they do come with the concern that if they’re not paid up at the time of an accident, their insurance won’t payout, which again means costs you become liable for.
Underinsured motorists are people who have liability coverage, but the maximums are low, or at least too low to cover the costs incurred by collisions. Limit terms are represented by two numbers, such as 25/50. These numbers represent the amount the insurance company will pay, in thousands of dollars when an accident occurs. The first number is the amount per person, and the second is the total they’ll pay for each accident. If your bills exceed these amounts, they’re considered underinsured, and you’re on the hook for the rest of the costs.
A Better Alternative to Simple Liability Coverage
By adding additional protections to your policy, you can avoid the financially catastrophic incidence of colliding with an underinsured or uninsured motorist.
- UI or uninsured motorist coverage protects you by paying for your medical bills when the other driver doesn’t have insurance.
- UIM or underinsured motorist protection will help cover additional costs when the other motorist has cut-rate insurance that won’t cover you or your passengers’ medical bills.
- UMPD, which is uninsured motorist property damage, will pay for repairs or replacements for your vehicle when the other driver is at fault and under or uninsured.
There are a variety of other coverages you can add to your auto insurance policy that an online broker won’t be able to explain well. The advantage of seeing a professional, independent insurance agent is that they will sit with you and explain how to get the most bang for your buck.
Independent agents work with dozens of insurance companies to find coverage that works for you, at a price you can afford, without adding protections you might not need. Agents like Mark Gilbertson with Patriot Insurance in Blaine, MN have decades of experience helping motorists like you in Blaine, the Twin Cities, and all the surrounding areas, enjoy the open road without worrying about if you have enough insurance coverage. Give him a call today to find out how the personal insight of an in-person insurance consultation can save you money and give you peace of mind.