Is Uninsured Motorist Recommended for Auto Insurance?
Almost every state requires liability insurance if you drive a vehicle on the highways of the state, and the required amount varies. Most drivers purchase the minimum liability insurance and hope nothing happens to them; others do not purchase insurance at all, hoping the police will not catch them. Uninsured and underinsured motorist insurance coverage is beyond the legal requirements, but many who understand insurance recommend it.
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Significance
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Automobile liability insurance insures you if you cause an accident that injures another driver or damages his vehicle. If every driver on the road has liability coverage as required by law, you would have the same protection, up to the policy limits. If the other driver is at fault and damages your car or injures you, his liability insurance will pay, up to the policy limits. Liability insurance policy limits are usually $25,000 or $30,000 for an individual, $50,000 or $60,000 for an accident, and $10,000 or $15,000 for damage to a vehicle or property. If the driver has no insurance or if the limits are not enough to cover your injuries, uninsured motorist insurance on your policy will cover your claim.
Function
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Uninsured and underinsured motorist insurance protects you if you have a collision with a driver who is at fault and who does not have insurance or does not have enough insurance. It also covers hit and run drivers. This insurance coverage will pay your lost wages, your medical expenses and pain and suffering.
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Underinsured Motorist Coverage
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If the other driver has insurance but you are seriously injured or have a high-paying career, his policy limits may not provide enough coverage to meet your loss of wages, pain and suffering and medical expenses. If you have a high uninsured/underinsured coverage on your policy, you will protect yourself from all the drivers who purchase the minimum liability insurance coverage. If you have a very expensive automobile, you might want uninsured motorist property damage as well, to cover the vehicle beyond the other driver's policy limits.
Benefits
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Even if you have health insurance, your uninsured/underinsured motorist coverage will pay first for medical care from injuries as a result of the accident. If you are partially at fault for the accident in a comparative negligence state, you will probably only be able to collect the percentage of the damages for the other party's fault. Your insurance company will not pay the percentage of your fault, just the percentage of the other driver.
Solution
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The Insurance Research Council estimated in 2009 that 16 percent of drivers on the road in 2010 would be uninsured. With one in six vehicles on the road uninsured, the likelihood of meeting one of them face to face is high. In some states, the figures are even higher than 16 percent. About 24 percent of Alabama drivers do not have liability insurance, according to Alabama Cooperative Extension website. Insure.com suggests that uninsured/underinsured coverage can help reduce the financial impact of a serious accident. Uninsured and underinsured motorist coverage protects you and others driving your car, but it also provides peace of mind.
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