When drivers are considering what type of insurance they need, the question of “What does uninsured motorist auto insurance cover?” is an important one. This type of coverage is not required in all states, but it is a good idea for drivers to add it onto a policy when they are arranging for coverage.
Uninsured motorist auto insurance pays for damages caused by a driver who doesn’t have coverage. It also pays out when a hit and run accident has occurred, since the person responsible for causing damages cannot be identified. This part of the policy also pays out when the at-fault driver’s auto insurance company denies the claim or does not have the financial resources to cover it.
Uninsured Motorist Auto Insurance Coverage
Uninsured motorist auto insurance is made up of two components: bodily injury and property damage coverage. Each one has its own coverage limit, and a driver may want to match them to the limits of his or her third party liability auto insurance coverage.
Bodily injury uninsured motorist coverage pays for medical bills and rehabilitation costs incurred by the policyholder, his or her family members, and passengers traveling in the vehicle when the accident occurs. If the accident resulted in one or more fatalities, this part of the policy will pay out a funeral benefit.
The uninsured motorist bodily injury coverage also protects the policyholder and his or her family members who are hit by a car while walking. It also pays for medical bills and other damages incurred when a person covered under the policy is injured while traveling in someone else’s vehicle.
An important advantage to adding uninsured motorist property damage coverage to a policy is that it compensates accident victims for lost wages. Someone who has been hurt in an accident may be able to make a claim for medical bills against his or her health insurance plan, but this type of coverage does not pay for economic losses.
The property damage component of uninsured motorist coverage is used to pay for the cost of repairs to the policyholder’s vehicle. If the car is totalled in an accident, the insurance company pays out based on its cash value, not the replacement cost or what the owner paid for it originally.
How to Get Uninsured Motorist Auto Insurance Coverage
Drivers who want to buy uninsured motorist auto insurance coverage can ask their existing auto insurance company to add it to an existing policy. Consumers can also shop around and get quotes for coverage which includes this type of protection if they wish.
An easy and effective way to find out how much it would cost to put it in place is to go online to get quotes from a number of providers. The cost of coverage does vary, depending on the company writing the policy and how much risk is it prepared to assume on a policyholder’s behalf. Spending some time shopping around can help a driver find affordable uninsured motorist auto insurance coverage.