What Everybody Ought to Know About Uninsured or Underinsured Motorist Liability

Ok, so here’s a scenario for you. You are stopped at a stoplight, just minding your own business, when all of a sudden WHAM! You are slammed into from behind.

Your car is smashed, and your neck REALLY hurts. It is pretty darn obvious who is at fault, and you get out of the car to exchange information. The person you are talking to is not exactly giving you the detailed information you were hoping for, and you begin to suspect something is wrong. The next day, when you DO try to verify the info that they gave you, you realize the truth…THEIR CAR WAS NOT INSURED!!!


What do you do now??? That’s why you have UNINSURED MOTORIST IABILITY protection! This coverage will protect you for medical injuries AND property damage that occurs by  someone who does not have insurance, or who has limits that are too low. The same coverages of BODILY INJURY (BI) and PROPERTY DAMAGE (pd) as are found in the REGULAR  liability portion of your insurance policy apply, except in this case, they cover YOU. Because the accident was not your fault, using this coverage does not go against your insurance record either.

Most companies DO charge a fixed deductible, however, to even out the costs of those who are lying to use this coverage. One reason for this is that this coverage will cover you even if the incident is a hit and run. SO, there are SOME people, unscrupulous as they are, that will go out and hit something with their car, and claim that someone did it while they were parked, but left the scene. Check with your insurance  company to find out exactly what the fixed deductible is for your state.

I will go more into coverages at a later time, but here’s a quick note about UNINSURED MOTORIST LIABILITY…the premium for this coverage is very inexpensive, and I recommend you choose the same liability limits for this coverage as you did for your REGULAR liability portion of your policy. If those limits are good enough to protect SOMEONE ELSE, why not have the same limits to cover YOURSELF? Also, some states require that you mirror the liability limits that you have for your regular BI/PD liability limits UNLESS you specifically sign a waiver. Just to sum up UNINSURED LIABILITY: If someone hits you and is uninsured or underinsured, or you are the victim of a hit and run either parked or while driving, it is this coverage that will protect you. It is usually subject to a fixed deductible, but DOES NOT affect your insurance record negatively.

Photo credit/Flickr/matthiasschack
Photo credit/Flickr/Mr.thomas

This entry was posted on Friday, July 24th, 2009 at 7:14 am and is filed under article. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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