Should You Get Uninsured Motorist Protection

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Car insurance comes with a lot of optional coverages and clauses but choosing them all is not a good option. It is important to determine your car insurance needs in order to avoid paying for unnecessary coverages. Today we are going to talk about the pros and cons of an uninsured motorist protection.

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  • Definition

An uninsured motorist clause is a common car insurance clause in the United States. A policy that includes such a clause offers financial protection in case the policy is in a car crash which involves a negligent, uninsured driver. This is not a mandatory clause and you need to pay extra in order to include it in your policy. In case of an accident, the insurance agency pays the difference between what the guilty driver can pay and what the policy holder is entitled to receive. A driver can also be underinsured meaning that the guilty driver doesn’t have enough coverage to cover the damages suffered by the other driver.

  • Qualifying for the uninsured motorist payment

In order for a policy holder to qualify for the uninsured motorist coverage, the car crash must fall under one of the following categories. The first category refers to situations when the policy holder is in a car crash provoked by a person who does not have liability coverage for the vehicle that he is operating. As car insurance is mandatory in the USA an insured motorist is a person who is breaking the law and some states require you to sue that person. The second category of uninsured motorist situations involves hit and run drivers. The third category refers to people who have been hit by stolen vehicles. When a vehicle is declared stolen, it is no longer covered by the insurance company and as so an accident provoked by a stolen vehicle is subject to the uninsured motorist protection.

  • Do you really need the uninsured motorist clause?

Whether you have an expensive car or not, you should definitely consider uninsured motorist protection. However, it is very important to determine how much coverage you need in this situation. With most insurance companies in the US, uninsured motorists coverages range from $20.000 to $1.000.000. In order to decide how much coverage you need you need to consider a few factors such as the value of your car, your medical insurance and wages disability protection offered by your employer. The best thing to do is to put yourself in the worst case scenario and consider how much money you would need in order to maintain your lifestyle. Some people choose an uninsured motorist coverage equal to the value of their car of their bodily injury liability.