If you\u2019ve ever heard the terms \u2018underinsured\u2019 or \u2018uninsured,\u2019 you may have wondered exactly what they mean. Being uninsured is pretty straightforward\u2014 it means you don\u2019t have any insurance coverage at all. But what does it mean to be underinsured?<\/p>\n\n\n\n
Being underinsured means that either you don\u2019t have enough insurance coverage to meet the state required minimums (a crime), or your policy maximums simply don\u2019t cover the full cost of all expenses associated with a specific claim.<\/p>\n\n\n\n
For example, if your collision coverage maximum is $15,000 but a claim results in costs of $20,000, you\u2019re considered underinsured to the tune of $5,000 for which you are financially responsible.<\/p>\n\n\n\n
That leaves the most important question\u2014 what can you expect if you\u2019re underinsured and you\u2019re in an accident, particularly if you\u2019re found to be the one at fault? Here\u2019s what you can expect if you\u2019re underinsured and are in an accident.<\/p>\n\n\n\n
If you don\u2019t have proper insurance and you\u2019re involved in an accident where you are found to be at fault, you will be 100% financially responsible for all costs associated with that accident. If you\u2019re completely unable to pay, the other party\u2019s uninsured motorist coverage may kick in\u2014 but that doesn\u2019t save you entirely from financial obligation. You\u2019ll have to cover all costs associated with damage to your own vehicle or personal injuries that you incur as a result of the accident. These costs can stretch into the thousands and transform your financial outlook for years.<\/p>\n\n\n\n
Because driving while uninsured means that there\u2019s no 3rd party insurance entity to act as your legal representative, you leave yourself completely exposed to legal action depending on the state where the accident occured. You could be sued for vehicle damage, property damage, personal injury, pain and suffering, and even psychological damage resulting from the accident. You could find yourself in a long and costly legal proceeding that can derail your life.<\/p>\n\n\n\n
Because driving without the legally mandated minimum coverage for insurance is technically a crime, driving while uninsured could result in the suspension or loss of your license and driving privileges. This can be a huge burden, considering most people commute to work in their personal vehicle and use their license for everything from getting groceries to getting around. Don\u2019t risk losing your driving privileges for months or even years\u2014 always make sure you\u2019re properly insured.<\/p>\n\n\n\n
We\u2019ve addressed what can happen if you\u2019re underinsured and involved in an accident. But what happens if the situation is the other way around, and the other driver is at fault but doesn\u2019t have adequate insurance coverage to cover the costs of the accident?<\/p>\n\n\n\n
That\u2019s where underinsured and uninsured motorist coverage comes into play.<\/p>\n\n\n\n
Underinsured motorist coverage is insurance coverage designed to protect you from financial liability in the event that you receive injuries as a result of an uninsured or underinsured driver who acts negligently and causes an accident. This can apply to someone who is driving without any insurance, someone driving with less than what their state legally requires to carry in terms of insurance minimum liability requirements, or someone whose insurance company denies their claim and who is financially unable to pay the cost themselves. <\/p>\n\n\n\n
For the purposes of uninsured motorist coverage, hit and run drivers are also considered to be uninsured\u2014 at least when it comes to bodily injuries. Underinsured motorist coverage can also apply to someone who has a legally permissible amount of insurance, but which won\u2019t properly cover the injuries you sustain. For example, a state may require a minimum of $15,000 per person for bodily injury liability coverage. If you sustain injuries totalling $30,000 in costs, underinsured motorist coverage can help make up the difference.<\/p>\n\n\n\n
Underinsured motorist insurance coverage can step in in the event of property damage from a driver who is underinsured or uninsured, depending on the extent of your policy. If an uninsured driver strikes your car due to their own negligence and doesn\u2019t have adequate insurance to pay for the costs, this coverage will pay for your collision deductible or the costs to repair your car, up to the policy limit.<\/p>\n\n\n\n
It\u2019s important to note that most underinsured motorist coverage will not cover healthcare expenses resulting from bodily injury in an accident with an uninsured or underinsured motorist.<\/p>\n\n\n\n
For the 28 US states for which uninsured motorist coverage isn\u2019t legally required, drivers may be wondering\u2014 should I still get uninsured motorist coverage if it\u2019s not a necessity?<\/p>\n\n\n\n
Our answer? Yes. Even if your state doesn\u2019t legally require uninsured motorist coverage or underinsured motorist coverage, it\u2019s still a safe bet to help ensure that you won\u2019t be left financially liable as a result of someone else\u2019s poor decisions or irresponsible driving. <\/p>\n\n\n\n
Plus, while every state (besides New Hampshire) legally requires its drivers to hold some level of auto insurance based on their specific state minimum requirements, choosing not to obey this law is unfortunately very frequent. In fact, over 13% of all Americans in 2015 were found to be driving without insurance. That\u2019s nearly 1 in every 7 people you pass on the roads with no insurance coverage whatsoever. It adds up to nearly 30 million total uninsured drivers, and some states are even worse than others. Florida, for example, features a rate of 26.7% uninsured drivers\u2014 over a quarter of the population. Mississippi\u2019s figures are around the same. And they\u2019re not alone. States like New Mexico (20%), Michigan (20%), Tennessee (20%), Alabama (18%) and more are all experiencing epidemics of uninsured drivers causing problems on the road.<\/p>\n\n\n\n
At Freedom National, our mission isn\u2019t just to provide cheap car insurance online for people all over the country. We want to help you become a more informed, safe, and confident driver, and that begins with knowing the secrets to vehicle safety<\/a>, important insurance facts, and how to navigate the rules and regulations<\/a> of your state or area.<\/p>\n\n\n\n If you want to learn more, explore our knowledge base<\/a> for a range of articles to help you expand your car insurance expertise. <\/p>\n\n\n\n If you\u2019re ready to receive a free online quote<\/a> from Freedom National for vehicle and get coverage in minutes, get started now. Freedom National is one of the most trusted providers of cheap car insurance online in the nation, automatically comparing rates from several major and minor insurers to find you the best possible rate and coverage. We even help people get insured who may have negative events on their driving record, from DUIs to required SR-22s<\/a>.<\/p>\n\n\n\n Get covered for less today, with Freedom National.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019ve ever heard the terms \u2018underinsured\u2019 or \u2018uninsured,\u2019 you may have wondered exactly what they mean. Being uninsured is pretty straightforward\u2014 it means you don\u2019t have any insurance coverage at all. But what does it mean to be underinsured? Being underinsured means that either you don\u2019t have enough insurance coverage to meet the state required minimums (a crime), or your policy maximums simply don\u2019t cover the full cost of all expenses associated with a specific claim. For example, if your collision coverage maximum is $15,000 but a claim results in costs of $20,000, you\u2019re considered underinsured to the tune <\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"yoast_head":"\n