You are driving to the market when another driver runs a red light and strikes you from the side. Your neck starts to hurt and your car appears to be a total loss. You check on the other driver who then tells you: “I have no insurance.” Now what? Are you protected? Who will pay for the damage to your car? Who will pay your medical bills? What about your pain and suffering? Hopefully, you covered yourself by having uninsured motorist coverage.
California law requires that all motorists carry automobile liability insurance. Nevertheless, there are those who, because of financial constraints, may have dropped their automobile liability insurance. So, if you are unfortunate to get into an accident with such a motorist, carrying uninsured motorist coverage on your auto insurance policy would be the best way to protect yourself.
Your uninsured motorist coverage can also provide you with additional coverage you may need in a serious accident or in case of a major injury. How? The limits for satisfying the requirements of carrying liability insurance are very minimal. In most cases, a motorist meets this requirement by carrying $15,000 in coverage. But what if your injuries exceed $15,000? What happens if you get into an accident with a driver carrying $15,000 and your medical bills total $25,000? How will you pay for the additional $10,000 in medical bills, and who will reimburse you for your pain and suffering?
Underinsured Motorists:
Well, uninsured motorist coverage generally protects in cases of “underinsured” motorists as well as uninsured motorists. In such a case, you can tap into your uninsured motorist coverage who would pay for the difference between your (uninsured motorist) policy limit and the other driver’s insurance policy limit.
So, for example, you carry $100,000 in uninsured motorist coverage. You get into an accident with a driver who carries $15,000 in coverage, and your medical bills total $25,000. You then have $85,000 under your uninsured motorist coverage - the difference between $100,000 (your uninsured motorist policy limit) and $15,000 (the other driver’s insurance coverage) - to help you pay for your medical bills, loss of income and pain and suffering.
That being said, keep in mind that if your uninsured motorist coverage is less that the other driver’s policy limit, you will probably not be able to use your uninsured motorist coverage to cover your medical bills, etc. in case of an “underinsured” motorist. So, check the limits on your uninsured motorist coverage.
Hit-and-Run Accidents:
Uninsured motorist coverage also applies to hit-and-run accidents. If you are involved in a hit-and-run accident and have uninsured motorist coverage, you need to contact law enforcement to file a report and report the accident immediately to your insurance company (some insurance policies may require that you report the accident within 24 hours - so check your policy or call your insurance agent). Make sure to review your policy regarding the steps you need to take in such a scenario.
Pedestrian Accidents:
Uninsured motorist coverage may even protect you if you or a family member, as a pedestrian, are struck by an uninsured or underinsured motorist.
Property Damage:
Uninsured motorist coverage is generally inexpensive, but its benefits are invaluable. So, review your auto policy to make sure that you carry uninsured coverage for both “bodily injury” and “property damage”.
This article strictly talks about California law. Laws in other states may differ. This article is for educational purposes only and is not meant to serve as legal advice. You should always contact an attorney to discuss any legal matter.
