There are two kinds of people a driver never wants to be (and never wants to get into an accident with either, for that matter): an uninsured driver, and an underinsured driver.
Online PR News – 08-January-2010 – – The No. rule of driving: Always be insured. At least that’s the advice a recent InsuranceAgents.com article is highlighting for drivers who don’t want to lose a lot of money in a nasty auto accident. Not to mention, it’s also illegal to drive without insurance. According to InsuranceAgents.com, having a sufficient auto insurance policy will protect drivers from the loss of thousands of dollars—or more!—in property damage and liability costs.
Furthermore, getting the state required minimum isn’t exactly ideal, either.
“With such a large number of uninsured and underinsured drivers cruising the highways and byways of America, there is a strong possibility of getting into a collision with one. There is a minimum amount of car insurance coverage required in each state but that will not cut it should you get into a collision,” the article states.
In an accident with an uninsured motorist, even if it is the other guy’s fault, the insured driver’s policy may not cover the accident (all of the liability and damages). They may, however, cover their policyholder’s damages only, but at expense to their premiums.
In an accident with an underinsured driver, assuming that the responsibility lies with them, that driver’s insurance will pay for victim’s damages up to their policyholder’s limit. After that, it’ll be up to the victim’s insurance to cover the rest (which can also be at expense to their premiums).
Obviously, neither option is ideal, since the driver who is responsible enough to get insurance and is not at fault may still have to pay for the accident—either directly, or through increased premiums. And the driver who didn’t think to obtain the right amount of insurance may face a heavy lawsuit from the other, angry driver.
The importance of appropriate auto insurance can’t be stressed enough. Drivers are encouraged to talk to their local auto insurance agent to find a quality policy at a competitive rate. Drivers can get free and competitive auto insurance quotes at InsuranceAgents.com.
Read full article: http://www.insuranceagents.com/car-crashes.html