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Uninsured and Underinsured Motorists

Uninsured and Underinsured Motorists

It’s important to know what you’re getting when selecting an auto insurance policy. With different types of coverage options, how does one decide what should be included in their policy? There are two options you can add to your policy that often get put on the backburner that can make a huge difference if you’re involved in an accident. It’s important to remember underinsured and uninsured coverage options when deciding on what auto insurance policy and what coverage options are best for you and your drivers at home.

What is the difference between uninsured and underinsured motorists insurance coverage? We break down everything you need to know about these two options.

Uninsured:

While most states, like Wisconsin, require auto insurance policies, there are still those on the roads who don’t have insurance coverage on their vehicle. Uninsured coverage helps cover medical expenses and other related damages if you’re involved in an accident with a driver who does not have liability insurance. Your insurance company will assist with medical expenses, pain and suffering and lost wages should an incident occur and you have uninsured motorist coverage through your auto policy.

Underinsured:

Underinsured coverage works very similarly to uninsured, but in this situation, underinsured protects you if you’re in an accident with an at-fault driver whose liability limits are too low to cover the damages or expenses. The at-fault driver’s insurance will usually pay for all damages up to policy limits, and then your underinsured coverage will cover the rest up to the limits you select.

Both underinsured and uninsured coverages are a great way to protect yourself in the event of an accident, but why do these coverage plans often go overlooked? Read more about a few common myths about underinsured and uninsured coverage options and why they aren’t true.

  1. You can sue those at fault for medical/damage expenses.
    You can attempt to sue someone who doesn’t have insurance and use that money for medical or damage expenses. Chances are if they didn’t have insurance to begin with, they probably couldn’t afford it and would be less likely to afford to pay you through a lawsuit.
  2. You’ll never need to use underinsured and uninsured coverage.
    The roadways are unpredictable. You could be the best driver on the road and still be involved in an accident. It’s better to be prepared and have the right coverage than to pay out of pocket for an accident later.
  3. The coverage is expensive.
    Contrary to popular belief, auto policies with underinsured and uninsured coverage can be affordable. Give one of our helpful agents a call to discuss options and the cost of adding coverage plans to your policy.
  4. “I can choose if and when I want the coverage.”
    Depending on what state you live in, you may be required to have both underinsured and uninsured coverage plans as part of your auto policy. If you live in a state where this coverage is optional, take precaution and talk to your agent about coverage options and requirements for your state.

We understand that picking the right auto insurance policy can be a difficult task but by adding coverage plans like underinsured and uninsured coverage, you can likely reduce future out-of-pocket expenses in the case of an accident with an at-fault driver. Contact a Lindow Insurance agent to learn more about coverage options for your auto insurance policy!

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