Being involved in an accident with uninsured motorists can be a nightmare especially since more often than not, they don’t have enough money to pay for whatever damages they may have caused you. Chances are, you’d end up paying for whatever property damage or injuries you suffered out of your own pocket.
So how can you protect yourself (and your pocket) against them when you’re out on the road? While being a safe and defensive driver is always the best way to keep out of motor vehicle accidents, you can also obtain either an uninsured or underinsured motorist insurance policy.
Uninsured Motorist Coverage (UM)
Uninsured Motorist Bodily Injury Policy (UM) – If you purchase this kind of policy, this covers you and insured members of your household as well as passengers in case of any injury, damage, or death caused by an uninsured or hit and run driver who is at fault for the accident.
The policy covers up to the limit of your purchase of the maximum amount for each person and incident.
Uninsured Property Damage (UMPD) - Your vehicle will covered by this policy if you were hit and sustained property damage because of an uninsured driver who was negligent. This will pay for repairs for your car although it may be again limited depending on your policy or state.
Underinsured Motorist Coverage (UIM)
Underinsured Motorist Bodily Injury Policy (UNDUM) – In case of a car accident caused by a negligent person with insufficient insurance, this will meet the difference-up to the limit of liability for any injury, damage, or death sustained. In order words, since the other driver is underinsured, whatever expenses were unpaid because of his limits, shall be paid by your insurance.
Under this policy, you, your insured family members, and passengers shall be covered unless the amount exceeds the limit.
Underinsured Property Damage (UNDPD) – Should the negligent driver have insufficient insurance to cover the property damage after a car accident, this insurance policy will cover the difference for the car repair or replacement costs.
In California, it is estimated that as much as ¼ of all drivers on the road are uninsured. So protect your savings in case of a car accident, make sure you get uninsured or underinsured motorist insurance policy to cover any losses or liabilities you incur as a result.
