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Auto Insurance 101

Uninsured/Underinsured Motorist Coverage

Tell Me Why I Should Carry This Coverage Again?!

As we continue our Auto Insurance 101 series we now move on to Uninsured/Underinsured Motorist Coverage. I'm sure your probably thinking "Why would I need to carry this coverage?” To be honest, I'd probably ask myself the same question! We shouldn't have to carry this coverage! Or should we? I mean, if you get in accident, and their "at fault", shouldn't their current Insurance policy cover me? Well have no fear! We are going to break this coverage down and explain some of the benefits of carrying this type of Insurance.

PART 1 - Let's start with the Uninsured part first. The "uninsured" portion is exactly what you’re thinking it is. They don't have insurance! It protects you and/or your passengers in the event that someone doesn't have Insurance OR it's a type of "Hit and Run" accident. It will cover your injuries and/or any damages to your car. You can also get a rental car under this coverage! The deductible in the State of Texas is a standard $250 dollars.

Example of How it Works:

"You’re on your way home. Your spouse calls and asks if you can stop by the store and pick up some ground beef for dinner. It's taco night! And who doesn't LOVE tacos!? So you’re excited! You get to the store, park your car, run in, and pick up a few other things while you’re in there. You come out with your cart FULL! YIKES! And then realize you forgot the ground beef! UGH! Just then you notice a HUGE dent with markings of a different color going down the driver side of your car. You look around. Nothing! No note, no witness, nothing......... You think to yourself "What the frick! I can't believe someone did this and just left!” This would be a good time to call up your Insurance agent and talk about using your Uninsured Motorist Coverage.

PART 2 - The second part to this coverage is the Underinsured portion. Keyword "Under" meaning not enough coverage. It protects you and/or your passengers in the event that you exceed the policy limits of the person "liable" for the car accident.

Example of How it Works:

"It's Friday night! You're getting ready to meet up with some friends, singing and fist pumping in your newly purchased 2018 Mercedes Benz C Class. You’re excited to show it off! You pull up to a red light and the driver in the car behind you is checking there Facebook! They have forgotten they were behind the wheel of a moving vehicle! When they remember, it's too late! BAM! They didn't stop and now they hit you from behind. You face minor injuries but your car is totaled! The replacement cost is around 40k and their Liability Insurance policy only pays out the maximum limit allowed of 25K. Now you’re left wondering "How am I going to get the rest of the money to replace my car?” So you call your Insurance Agent for help and they advise you that you can use the Underinsured Motorist Coverage on your Insurance policy. You’re happy again!"

Uninsured/Underinsured Motorist Coverage is basically a "back-up" type of coverage. Most people will add this coverage even if they only have Liability Insurance. The pricing is usually pretty cheap. However, in some states, the coverage can get expensive. It just depends on how many drivers out there aren't carrying Insurance and get in an accident. In fact, according to the Texas Department of Insurance, around 22 to 28 percent of drivers on the road aren't insured! And in some states the uninsured motorist’s rate is almost 50 percent!

So take the time to double check your policy and see if you have this coverage. Cause you never know! And if you have any questions or comments please let me know! Until next week! Be Alert, Be Safe and Be a Happy Driver! :)

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