3 Car Insurance Policy Add-ons You Need to Know Before a Car Accident

1/16/2020 By webmaster Read in 3 minutes

You don’t want to get into an accident with an at-fault, uninsured driver and then find out you don’t have enough coverage. Learn more here.

You don’t want to get into an accident with an at-fault, uninsured driver and then find out you don’t have enough coverage. Learn about the three auto insurance add-ons that will protect you but not benefit the insurance company, then speak to your agent. 

What If the Other Driver in a Car Accident Doesn’t Have Insurance?

It’s a beautiful Sunday afternoon and you’re driving with your wife and children to your parents’ house for dinner when out of nowhere a car slams into the passenger side of your car. Everyone is injured. 

Then you find out the other driver doesn’t have car insurance. You have insurance so you figure everything will be fine. What you don’t realize though, is that while you do have car insurance you don’t have uninsured motorist insurance and without this coverage you and your family won’t be covered for your injuries, and they are expensive.

You wonder how this is possible. You have car insurance and you thought you were covered. You’re covered for the damage to your car but if you didn’t purchase uninsured insurance you won’t be covered for the injuries. As it turns out, you didn’t know about uninsured insurance and your insurance agent didn’t mention it.

Unfortunately, we see this scenario all the time. 

What You Need to Know About Car Insurance

When you’re shopping for car insurance it’s important to ask questions and be informed. Most car insurance agents don’t mention some of the important policy add-ons like uninsured motorist coverage. About 1 in 8 drivers in the United States are uninsured, according to a study by the Insurance Information Institute in 2017. You don’t want to find yourself in a car accident with an at-fault driver without insurance and then find out you aren’t covered. 

Uninsured Motorist Coverage (UIM)

Many times when you get into a car accident that isn’t your fault you file a claim with the at-fault driver’s auto insurance company. Their company pays for the damage to your car, lost wages and your medical bills. If you get into a car accident with someone who doesn’t have car insurance and it’s his or her fault you will be responsible for the expenses associated with the car accident. 

If you have UIM coverage your insurance company will pay for the medical bills, damage to your car and lost wages up to the limits of your policy. 

Underinsured Motorist Coverage

You use underinsured motorist insurance if you have a car accident with an at-fault driver who doesn’t have enough coverage. This car insurance add-on covers damage to your car, lost wages and medical bills up to your coverage limits. 

Collision Coverage

Collision coverage is another protection you can add onto your policy. If you’re involved in an accident with an at-fault uninsured driver or a hit and run accident collision coverage will pay for the repairs to your vehicle up to the limit of your coverage. 

Choosing the right car insurance policy is important. You may be looking for the best price and choose not to include some of the important add-ons because you’re on a budget. Staying on a budget is important but car insurance isn’t the area where you want to be conservative. You can save money in a different area of your life but making sure you’re covered in a car accident is critical. Keep in mind, you never expect to have a car accident, especially one with serious injuries but it can and does happen.

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