Nobody plans for an accident, but it’s good to be ready and effectively plan for them in case any occurs. You can prepare for accidents by taking motor insurance policies such as third-party and comprehensive covers. As the number of accidents increases, one of the ways to keep yourself safe is by obtaining uninsured motorist coverage.
Most insurance coverage only covers accidents caused by insured cars; the challenge is what happens when an uninsured car causes an accident. In case of such accidents, you should have uninsured motorist coverage to meet the cost. The cover saves you the burden of such expenses, and here are the advantages of uninsured motorist coverage.
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What is Uninsured Motorist Coverage (UMC)?
The uninsured motorist coverage is usually included as an add-on for the insurance coverage even if you have comprehensive coverage. It is not compulsory but can be helpful, especially if you have a family car commonly shared by many family members. Uninsured motorist coverage covers accident liabilities caused by someone without insurance coverage.
It also covers an accident caused by other family members not having an insurable interest in the car. In short, it saves you the burden of accidents caused by other people driving your car or accidents caused by other drivers without insurance.
Someone without comprehensive coverage can take a third-party cover and a different uninsured motorist coverage. It is not compulsory coverage but one of the best policies you need for your family car. This cover also meets liabilities for damages caused by other drivers without insurance. If someone without insurance hits you, you can be sure UMC will pay for the damages caused.
Keeping this in mind, for insurers, particularly in densely populated ted states becomes mandatory. They can buy cheap Oklahoma auto insurance from various prominent outlets in the state.
Merits of Obtaining Uninsured Motorist Coverage
There are many benefits your protection cover will offer; the benefits include:
1. Liability Protection
The essence of taking uninsured motorist coverage is to protect you from out-of-pocket payments in case of an accident. For instance, it protects you when the accident breaches the warranty and terms of coverage; as such, your insurer is unwilling to pay for the damages. It also saves you from damages caused by uninsured drivers, such as hit and run, and the car owner can’t be traced. You do not have to look for cash to pay the person, but the other insurer can meet such costs.
2. Extensive Coverage
The policy will cover nearly all the damages arising from the accident without having too many limitations. It covers the following damages:
- Lost wages from time off work
- Pain and suffering
- Present and future medical expenses
- Death
- A portion of medical bills
- Loss of the future enjoyment of life
With such coverage, you do not have to worry about additional payments since it meets the limitations of other covers, such as third parties. In short, it covers the areas such other motor covers may ignore.
3. Use It For Excess Payments
Suppose someone caused an accident and the damages exceed what third party or comprehensive coverage pays for; this cover can help you meet the excess costs. This is in the interest of risk sharing amongst the insurers; hence you do not have to be a part of the co-insurance arrangements or risk sharing.
In case of any policy limitation i.e. the insurance policy paying only up to certain amounts, you can rely on this cover to top up the rest of the costs. Instead of using your money, you can rely on insurance to cover the remaining costs.
4. Stacking Coverage
You can easily stack up the payments if you have many vehicles under the same coverage. This means that you do not pay independently but the same amount for all the cash, regardless of the risk imposed. For instance, if you have five vehicles and three pay $2000, you can stack up the payments and pay $10 000 instead of paying individually.
Stacking saves you the burden of paying different amounts and paying on different days. It works just like the provisions of motor fleet coverage.
5. Ease of Purchase
Whenever you go for a comprehensive or a third-party cover, you can talk to the same insurer to provide the uninsured motorist coverage. For the comprehensive cover, you can make it an add-on. For third-party, you can buy it alongside the coverage. It helps increase your coverage potential, nearly meeting that provided by comprehensive protection.
6. Different Variations to Select
There are different uninsured motorist coverage variations you can select from. Here are the four main coverage variations.
- Uninsured motorist bodily injury (UM or UMBI): It covers bodily injuries arising from the accident.
- Uninsured motorist property damage (UMPD): You need this cover if your car is hit by another car without insurance. It is also vital coverage in case of hit-and-run incidences. It covers damages to your car.
- Underinsured motorist bodily injury (UIM or UIMBI): This coverage will only be activated when another driver causes an accident. However, they cannot meet all the costs due to policy limitations. It only applies to medical expense excess costs.
- Underinsured motorist property damage (UIMPD): This coverage will only be activated when another driver causes an accident but cannot meet all the costs due to policy limitations. It only applies to property damages.
7. Meeting State Requirements
Different states have different requirements for uninsured motorist coverage. Therefore, having one is additional safety if you drive to other states where it is compulsory. On such occasions, you do not have to worry about buying one to ensure compliance.
Conclusion
Uninsured motorist coverage is an additional safety measure for drivers and all car owners. It helps you meet all the liabilities in case someone else causes an accident using your car or someone without insurance hits you. It is not a requirement in all states, but it is good to have one, just in case.