Uninsured car insurance pays for your bodily injury or property damage if you are hit by an uninsured or underinsured motorist.
It's dreadful, but there are times when someone seemingly comes out of nowhere and runs right up your back end.
Although it is the law in all states to have at least auto liability insurance, not everyone obeys the law.
If you are hit by a driver that does not have auto insurance, uninsured motorist insurance will protect you and cover your damages.
Underinsured motorist coverage is similar, but it differs in that it
pays the difference if the at fault driver doesn't have enough coverage
to pay for the full amount of your damages.
For instance, each state has a minimum requirement of liability car insurance coverage. It may be $40,000.
If someone just purchases the minimum amount but then is found at fault in an accident where the damages exceed that amount, say $50,000, than underinsured motorist coverage will be the excess of $10,000.
When I first started investigating "no fault insurance," another name for uninsured or underinsured coverage there was one point of confusion to me.
I mean, I understand the concept, certainly, but it seemed to me that this coverage is much the same as personal injury protection and collision. After a little investigation, I discovered that we don't really need both in some cases.
Ask your insurance provider if you have any overlapping or duplicate coverage, and to give you a clear explanation of your coverage. You don't want to pay for something twice when you only get to claim it once, if you know what I mean. ;)
The important thing, I believe, is to be sure to check with the insurer of your choice to find out the specific conditions associated with the different types of auto insurance coverage you are considering and uninsured car insurance in particular.
You want to be sure of your deductibles, limits of liability, and other policy details.
Don't be afraid to ask questions until you understand fully. After all, this is money coming out of your pocket and could be even more than that if you get hit by a driver who is driving without insurance.
And don't forget, Uninsured Underinsured Motorist insurance can sometimes be referred to as no-fault insurance, so be sure you find out what terminology is used in your state. This way you can speak with confidence and get your best deal possible.