The Benefits of Uninsured / Underinsured Motorist Coverage on Your Auto Insurance Policy

When considering which automobile insurance policy to purchase, it can seem a bit overwhelming at times. What coverage do you need to have? Whether you opt for just the basic liability package or you decide to purchase the full comprehensive and collision as well, you should always make sure that you consider uninsured motorist coverage and underinsured motorist coverage too.

First of all let's define what these coverages are. Uninsured motorist coverage pays for any injuries you may have incurred in the case that you are in an accident with a driver who does not have any insurance coverage. Uninsured motorist coverage also protects you by paying for your injuries if you are involved in a hit-and-run.

Underinsured motorist coverage, on the other hand, helps cover the cost of your injuries in the event that the driver who causes the accident doesn't have enough insurance to completely cover the cost of your injuries. That is, underinsured motorist coverage will make up the difference for you. In addition, both of these, uninsured and underinsured, will pay for any wages lost during the time that you may have to stay home due to your injuries and sometimes reimburse you for some pain and suffering. These are the benefits of having uninsured and underinsured motorist coverage.

Before deciding if you do or do not need these coverages, there are a few other things you need to take into consideration. Although most states have a mandatory law that requires all drivers to have at least basic liability coverage, many drivers still drive uninsured because of the high price of insurance costs, especially during hard economic times. This is an instance in which it would be beneficial to have uninsured motorist coverage. Next, if somebody hits you and is only insured by the state's minimum liability limit, then their coverage may not be enough to cover the cost of your injuries. This is when it would be prudent to have underinsured motorist coverage. Also, even though you may have health insurance that would cover the expenses of your health care, health insurance will not compensate you for your lost wages or any pain or suffering as would uninsured and underinsured motorist coverage.

Basically, it would be better to play it safe and to have uninsured and/or uninsured motorist coverage than to not have it. The benefits to having it are much better than the risks you assume by not having it.