The Dif­fer­ence be­tween Unin­sured and Un­der-in­sured Cov­er­age

The Weekly Vista - - News -

Both unin­sured mo­torists and un­der-in­sured mo­torists in­surance cover you when an­other driver is at fault in an ac­ci­dent and is not ad­e­quately in­sured to cover the ex­pense of your in­juries, prop­erty dam­age, and even lost wages. In some states, you are re­quired to buy unin­sured/un­der-in­sured mo­torists cov­er­age, and in other states age, and you are in­volved they are op­tional. Make sure you check with your agent. While they sound sim­i­lar, unin­sured and un­der-in­sured mo­torists cov­er­age pro­vide two dif­fer­ent types of in­surance, as fol­lows. Unin­sured Mo­torist Cov­er­age: Unin­sured mo­torist cov­ers your costs in the event that he at-fault driver does not have even the min­i­mum li­a­bil­ity in­surance, and has no cov­er­age to pay the costs of your bod­ily in­jury and prop­erty dam­age. Peo­ple who drive with­out car in­surance may feel that the fine for not be­ing in­sured is likely to be less than the cost of in­surance. These drivers are there­fore un­pre­pared for the pos­si­bil­ity of be­ing re­spon­si­ble for in­jury, fa­tal­ity or prop­erty dam­age they may cause oth­ers. This is where the unin­sured mo­torist cov­er­age

on your pol­icy re­sponds. It cov­ers ex­penses you in­cur, up to the lim­its you set on your own auto in­surance pol­icy, and af­ter you pay your de­ductible. Note, how­ever, that if you have a col­li­sion de­ductible waiver as­so­ci­ated with your pol­icy, your de­ductible may be waived if you are in an ac­ci­dent with an unin­sured mo­torist.

Un­der-in­sured Mo­torist Cov­er­age: Un­der-in­sured mo­torist in­surance cov­ers your costs in the event that the at-fault driver has the min­i­mum cov­er­age, or a very low amount of in­surance. Li­a­bil­ity lim­its can be as low as $15,000 in some states. When you con­sider the fact that you can in­cur costs in that ball-park for a sin­gle night’s stay in a hos­pi­tal, it helps to pro­vide per­spec­tive on the im­por­tance of un­der-in­sured mo­torist in­surance. If you have this cov­er­age, and you are in­volved in an ac­ci­dent with a driver who has in­suf­fi­cient li­a­bil­ity cov­er­age, you will have ac­cess to the max­i­mum lim­its of that driver’s li­a­bil­ity pol­icy, af­ter which your unin­sured mo­torist cov­er­age will kick in to pay for your in­juries and prop­erty dam­age up to your pol­icy’s lim­its.

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