|
Despite laws requiring auto insurance in practically
every state, a lot of people are driving without
any -- or without enough -- liability insurance.
This happens to be a growing trend. Tickets for
being uninsured tend to cost less than the insurance.
This makes not using insurance a tempting option
for those that are cheap or financially strapped.
Unfortuately uninsured motorists don't have a
record of safer driving.
The uninsured/underinsured motorist section of
your policy protects you if you or family members
who live with you are hurt by one of those drivers
while you're in your car, walking or, in some
policies, bicycling. Your guests also qualify
if they are hurt while in your car.
This coverage also applies when you are struck
and injured by a hit-and-run driver and, in some
cases, by a driver insured by a company that becomes
insolvent.
In order for this coverage to kick in, the other
driver has to be declared at fault. In most states,
when blame is in doubt or the amount payable is
contested, you and your insurer have to submit
your differences to arbitration.
This kind of insurance usually covers only costs
arising from bodily injuries. In states in which
property damages are included, claims may be reduced
by a deductible.
Generally, companies are obligated to pay claims
up to the minimum amount fixed by your state for
liability insurance. But often you can purchase
higher limits for an additional premium.
Most states require insurance companies to offer
uninsured or underinsured coverage; some companies
combine them. If your company offers them separately,
buy both.
|
