Todays topic Uninsured/Underinsured Motorist Coverage:
Hopefully you all read my section on Bodily Injury/Property Damage Coverage and as a reminder that coverage is for Other People that you injure.
OK, I failed to mention that Bodily Injury/Property Damage is required in all states which his why you have to provide a proof of insurance card if you are in an accident or pulled over by the cops.
So...."Why do I need Uninsured/Underinsured Motorist if everyone is required to carry Bodily Injury/Property Damage insurance"??
Easy answer. Because.they.don't.
Unfortunately a significant amount of the poplulation does not feel compelled to buy insurance and so what happens if one of those folks hit's your vehicle and now you are injured?? Well, we know that in most cases the legal system will take care of that guy and you get to file a claim against your own insurance company for your bodily injury. This time the per person limit of Uninsured/Underinsured Motorist coverage IS for you! The per accident limit applies if you have a passenger that's also injured.
What happens with my damaged vehicle you ask??
Well, if you carry Collision, your company will pay and Yes you will pay your Collision deductible and if your insurance company recovers money for the now hopefully incarcerated person who hit you, then you will receive your deductible back but that might take years.
What if you don't carry Collision on your vehicle?? In SELECT states Uninsured/Underinsured Motorist Property Damage Coverage is available and you can make a claim for damage to your vehicle under this coverage which also might or might not have a deductible.
If your domicile state does not have the Uninsured/Underinsured Motorist Property Damage Coverage and you do NOT carry Collision, then guess what....you might recover the money to pay for the damages from the person who did the damage or you might not.
Uninsured/Underinsured Motorist Bodily Injury Coverage is available on all policies I sell. It is not mandatory and you may reject it but you WILL have to sign a form stating that you wish to reject it and I WILL try to talk you out of rejecting it. It's a Good Thing.