You shouldn’t be surprised to find out that not every road user has the right coverage or any at all. This is where uninsured motorist coverage comes in – when you encounter such people in an unfortunate event. Still, many people don’t know how this applies to road users and what it may do for them.Â
Keep reading to learn more about this in a very brief read.Â
What is uninsured motorist coverage?
According to research, one of every eight drivers does not have vehicle insurance. Hence, what happens if you sustain injuries in an automobile accident that someone without liability insurance causes? Medical bills and deductibles on your health insurance may result in considerable out-of-pocket expenses.
You may lose money if your injuries keep you from working. Fortunately, uninsured motorist insurance is available to assist you with this problem. It comes in if you and your passengers get into an accident that one of the following causes:
- A driver who is not covered by liability insurance on their car.
- Drivers who don’t have enough liability insurance to cover your medical bills.
- A driver whose insurance company refuses or cancels to cover him.
What does uninsured motorist coverage covers?
The following expenditures receive coverage under uninsured motorist coverage:
- Expenses you incur as a result of medical treatment
- Lost wages if you cannot work due to an automobile accident.
- Compensation for hardship and agony.
- Expenses relating to a funeral
- Car damage
Uninsured motorist coverage is required in certain jurisdictions, while others require your insurance company to offer you the coverage. Whichever way, UM coverage is worth considering if your state allows it.
What is the coverage limit in uninsured motorist coverage?
UM coverage usually comes as a two-digit number, such as 100/300. Here’s what it entails:
- Physical damage for each person for up to $100,000.
- A total of $300,000 in bodily injury coverage is available per accident.
If four passengers sustain injuries and you have a 100/300 coverage, the maximum UM payout is $300,000. When your UM coverage expires, you should typically look into health insurance.
