When you own and operate a vehicle, there are inherent risks. If you accidentally cause an accident, for example, you will be responsible for any resulting injuries or property damage. These costs will usually be covered by your insurance. If another motorist causes an accident, you assume that the individual responsible will take care of any financial losses using his or her own insurance policy.
Unfortunately, some motorists don’t purchase the insurance required by law, leaving you with unexpected losses. You can protect yourself in these situations by maintaining uninsured and underinsured motorist coverage.
About Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage is designed to reimburse you when you suffer losses in an accident that involves a driver who does not have adequate insurance. This type of coverage may also apply when you are involved in a hit-and-run accident.
While some states require you to purchase this type of coverage, it is optional in the state of Indiana. According to the Indiana Department of Insurance, all newly written auto insurance policies must contain a minimum amount of uninsured motorist coverage, underinsured motorist coverage, and uninsured/underinsured property damage coverage unless you reject these options in writing.
Why You Should Carry Uninsured and Underinsured Motorist Coverage
Historically, as many as 15 percent of drivers will remain uninsured despite legal requirements. As of 2015, the percentage of uninsured motorists was even higher in the state of Indiana, calculated at 16.7 percent. This percentage does not include the number of drivers who don’t purchase adequate insurance coverage.
In this time of economic uncertainty, the number of uninsured and underinsured drivers is likely to grow even more. Because people are not driving as much and the number of accidents has dropped, many insurance companies are offering premium refunds to policyholders. Likewise, some companies are even offering payment plans to deferred billing to ease economic burdens. These bills will become due eventually, and many motorists may choose to reduce or eliminate their insurance coverage altogether.
With a higher number of uninsured and underinsured motorists on the roadways, the chances of being involved in an accident with one of these drivers is greater than ever before. Thus, having uninsured and underinsured motorist coverage is essential.
How Much Coverage Do You Need?
Some insurers may offer policies with low limits at a low premium, but this is rarely the best choice. If you want to protect yourself in the event of an accident involving an uninsured or underinsured driver, you need to purchase coverage beyond these low limits. Talk to an insurance agent to find out exactly how much coverage you need to offer the appropriate amount of protection.
The Bottom Line
In the state of Indiana, you are required to purchase liability coverage to protect you if you cause injury or property damage. However, these policies won’t protect you when someone else is at fault. When the person who causes your accident does not have the proper insurance, uninsured and underinsured motorist coverage can reimburse you for your losses.
The best way to make sure you have the coverage you need at the right price is to consult an independent insurance agent. An independent insurance agent will review your situation and help you make the most advantageous choices. Please contact Tolbert Tower Insurance today to learn more.