Do I Need Uninsured and Underinsured Auto Insurance?
It is estimated that 1 in 8 drivers are UNinsured in the United States–and that doesn’t even count UNDERinsured drivers. Everyone is required to carry insurance coverage in order to register their vehicle with the state, but unfortunately, many drivers let their policies lapse or only carry the bare minimum. What happens if one of those drivers hits you? It would be too late to ask, “Do I need uninsured and underinsured auto insurance?” but you can certainly weigh the risks and reduce your vulnerability now.
If you’re hit by a driver with minimum coverage ($25,000 in Kentucky) and your injuries cost more than $25,000, you’d need an underinsured insurance policy on your own auto insurance plan to kick in once the liable party’s limit is met. Then your underinsured insurance would pay your remaining bills, lost wages, future medical, etc. This is a really big deal. Imagine having a horrible accident in which your car is totaled and you break a bone and need surgery, rehab, physical therapy, time off work, and pharmacy purchases. $25,000 could be exhausted after the ambulance service and a thorough hospital workup of CT scans, X-rays, and an MRI, let alone the surgery and after-care. Many of those items would be out-of-pocket expenses unless you carry an underinsured auto insurance policy to help with the balance.
The same goes for uninsured auto insurance coverage: If you get hit by someone with no auto insurance at all–especially someone with no personal assets to pursue in litigation–then you’d use your uninsured insurance coverage to pay your bills.
There are two types of uninsured and underinsured auto coverage to consider:
- Uninsured and underinsured motorist bodily injury coverage (UMBI):
This can cover medical expenses, lost wages, and injury-related expenses for you or any drivers or passengers your allow in your vehicle. It can also cover you for hit-and-run accidents.
- Uninsured and underinsured property damage coverage (UMPD):
This can cover your car’s damage but doesn’t protect against hit-and-run collision damage.
Adding uninsured and underinsured auto insurance coverage to your auto policy usually costs less than 10% of your current rate. It’s completely doable and could save you and your family from being hung out to dry. Check your policy today and add uninsured underinsured coverage if it’s not already there.
The Law Office of Todd W. Burris can answer your questions today at 859-252-2222.