What Does Uninsured Motorist Insurance Not Cover?
Uninsured motorist coverage is required in many states because it provides coverage when the other driver may not have any. Because of the financial costs and risks that one accident could bring about, it certainly is worth having. Insurance of any kind, however, does not cover everything.
For one thing, uninsured motorist insurance will only provide coverage for part of the damages done to your vehicle. This typically is around $3,500 (may be more or less in your state), which may be enough for a small accident. For a larger one, however, your Collision insurance coverage should take care of it, but your uninsured motorist coverage may only take care of the deductible.
Uninsured and underinsured motorist coverage only provides coverage up to the limits specified in your insurance policy. Any damages, medical bills, liabilities above that amount are up to you to pay.
In addition, your coverage limits that you set are the total amount that you will receive for any accident. In the event that another auto insurance company pays, you will still receive only an amount up the coverage limits in your policy.
Property damage limits are another consideration. Setting your limits too low on your uninsured motorist coverage will make you financially responsible if you are found to be at fault.
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Posted by Allen Davis on May 1st, 2010 4:43 pm