Even though the law currently requires all motorist to carry liability insurance, there are many who do not.
What happens if you are in an accident with another person who does not have insurance and they were at fault in causing the accident? Your car is damaged and you are hurt, who is going to pay for all of it? Common sense would tell us the at fault party should still pay for it, but reality tells us that more than likely that person does not have the cash or the assets to pay all of the damages. So, what do you?
You would turn to your Uninsured Motorist coverage to pay for the damages. Here is how the property damage to your car and your injuries would be paid.
- Damage to Your Auto- Your Uninsured Motorist Property Damage limit would be used to pay for the damages to your car, that is why it is EXTREMELY important that the limit on your policy is high enough to totally replace one of your vehicles.
- Medical Bills and Lost Wages- Your Uninsured Motorist Bodily Injury limits would be used to pay your medical bills, lost wages and other damages such as pain and suffering. We always recommend to clients to carry the same limit for Uninsured Motorist Bodily Injury as the do under the Liability coverage and that these limits be as high as the client can afford.
What's the difference between Uninsured Motorist and Underinsured Motorist coverage.
Underinsured Motorist coverage is applicable when the other at fault party has insurance, but their limits are not high enough to pay all of your damage and or injuries.
What happens to the at-fault party, do they just get away with it?
Your insurance company has the right to subrogate against the responsible party to seek reimbursement for the monies your insurance company to you under the Uninsured Motorist coverage. Whether they actually recover those monies depends on each situation.
Review your policy
Review your current policy to see what limits you carry for Liability, Uninsured Motorist and Underinsured Motorist. Consider raising those limits to properly protect your property and family. If your limits are already at the highest level on your auto policy, consider purchasing and Excess/Umbrella policy to extend those limits even higher.
Give us a Call at 806-763-7311
The Shropshire Agency has been helping families with their auto insurance for over 65 years. We would be glad to review your policy with you and even give you some comparable quotes. We can also help insure your home to get you all the credits you deserve. If you own a small business, we can help with that.
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Check out our other Blogs on Auto Insurance