Auto Insurance
4 min read

Uninsured Or Under-Insured Motorist Coverage: Why You Need It

Published on
March 21, 2023

Did you know that about 1 in 8 drivers in the United States are uninsured?

Imagine being involved in a car accident caused by someone else, only to find out that the at-fault driver has no insurance or insufficient coverage. This scenario can leave you with a hefty financial burden that can be easily avoided by knowing what kind of coverage to add to your car insurance policy.

In this article, we will discuss what under-insured coverage is, why you need it, and how it can protect you on the road.

What's Uninsured or Under-insured Coverage?

Uninsured or under-insured coverage, also called under-insured driver protection, is an optional insurance policy that can be added to your auto insurance policy. It protects you if you get into a car accident with an uninsured driver or one with insufficient insurance to cover the cost of any damage to your vehicle.

Why Do You Need Uninsured Motorist Coverage?

If you are involved in an accident with an uninsured or under-insured driver, you may be left with significant financial burdens. Without this coverage, you'd have to pay for your own medical bills, car repairs, and any other damages out of pocket. This can be extremely expensive and may even result in financial ruin. By adding uninsured coverage to your policy, you can protect yourself from these potential costs and gain financial protection from uninsured drivers.

How Can This Type of Coverage Protect You On The Road?

Uninsured or under-insured coverage can provide a safety net in case you're involved in an accident with an uninsured or under-insured driver. This coverage is particularly important if you live in a state with low minimum coverage requirements.

In some states, ‌minimum liability coverage is as low as $15,000 per person and $30,000 per accident. If you're in an accident with someone who has only the minimum coverage, their insurance may not be enough to cover your medical bills and other expenses. Uninsured or under-insured coverage can help make up the difference, providing coverage for under-insured accidents.

For example, if you have $100,000 in under-insured coverage and the at-fault driver only has $50,000 in coverage, your insurance company would cover the remaining $50,000 in damages. It’s an extreme example, but it can help you understand why this type of coverage is important to have.

How to Add Uninsured or Under-insured Coverage to Your Policy

If you're interested in adding uninsured or under-insured coverage to your existing auto insurance policy, the process is relatively simple. First, contact your insurance company to see if this type of coverage is available. Insurance companies may have different coverage limits and pricing options, so it's a good idea to compare quotes from multiple insurers to find the best coverage for your needs.

Once you've decided on the coverage amount and insurer, you can usually add the coverage with a simple phone call or online request. Your insurance agent or company will be able to guide you through the process and answer any questions you may have. Remember that adding uninsured or under-insured coverage increases premiums, but it's worth it to protect yourself from uninsured drivers.

What to Do If You're in an Accident with an Uninsured or Under-insured Driver

If you're involved in an accident with an uninsured or under-insured driver, it's important to know what steps to take to protect yourself and your finances. First, make sure to exchange information with the other driver, including their name, contact information, and license plate number. If the other driver is uninsured or under-insured, it's especially important to get a police report documenting the accident.

Next, contact your insurance company as soon as possible to report the accident and start the claims process. If you have uninsured or under-insured coverage, your insurance company will work with you to cover your expenses and damages. Be prepared to provide documentation, such as medical bills and repair estimates, to support your uninsured driver accident claims.

If the driver is uninsured or under-insured, you may need to take legal action to get money for your expenses. Consulting with an attorney who specializes in personal injury or car accident cases can help you understand your options and navigate the legal process.

Don't Leave Yourself Vulnerable

Uninsured or under-insured coverage protects you from financial hardship if you're involved in an accident with an uninsured or under-insured driver.  While it isn't required by law in all states, some states require drivers to carry this coverage. By adding this coverage to your car insurance policy, you can rest easy knowing that you have auto insurance for uninsured motorists.

In addition to uninsured or under-insured motorist coverage, you may also want to consider adding uninsured motorist property damage coverage to your policy. This type of coverage can help cover the costs of repairs to your vehicle if it is damaged in an accident with an uninsured or under-insured driver.

You can protect your finances from car accident costs by investing in uninsured or under-insured motorist coverage. This adds important protection against medical expenses and property damage caused by an accident with an uninsured or under-insured driver. Add this coverage to your auto insurance policy today.

About the Author: This article was crafted by the LOOP Marketing Team. Comprising of seasoned professionals with expertise in the insurance industry, our team is dedicated to providing readers with accurate, up-to-date, and valuable information. At LOOP, we're passionate about helping families navigate the world of car insurance, ensuring they get the best coverage at the most affordable rates. Learn more about our mission and values here.

For more insights on auto insurance and other related topics, visit our blog.

Quick Navigation

You don’t need a good credit score to have great car insurance!

Check out how much you could save today.

Check Our Prices
You don’t need a good credit score to have great car insurance!

Check out how much you could save today.

Check Our Prices
A weekly newsletter with useful info to help you get to where you’re going.
By subscribing you agree to with our Privacy Policy and provide consent to receive updates from our company.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.