There is another unfortunate side of the economic downturn that impacts every driver on the road: The number of uninsured drivers is expected to rise. The definition of an uninsured driver is simple- some one that has no insurance on their vehicle. However, if you are in an accident with an uninsured driver and do not have the proper coverage it may not be that simple.
According to recent studies, about one in eight drivers across the United States may be driving uninsured. This means responsible drivers who purchase insurance may end up paying for injuries caused by uninsured drivers. Some people often confuse uninsured and underinsured motorist coverage to be the same.
They are two separate coverages:
Uninsured Driver
This is exactly what we said earlier. It is someone who decides to drive a vehicle without any liability coverage. Liability coverage is there to pay for your vehicle or injuries incase they are at fault in an accident.
Underinsured Driver
This coverage is for someone that is insured but may not have enough coverage to take care of your injuries and damage to your vehicle. That is why it is important for you to make sure you are adequately covered so there is no confusion after you have been involved in an accident. If you add underinsured coverage to your policy, it helps to fill in the gaps someone else’s policy may have. Read our other article on How Your Auto Insurance Can Cause You to Lose Your Home. You can watch our video here.
If you have not reviewed your policy coverage in the last two years, now is a good time to revisit your auto coverage. We’re happy to help – and we can often increase your coverages without a significant increase in premium. Just call Lora at 803-286-1161 or email her at Lora@hfcbenefits.com.
