My insurance agent is trying to sell me uninsured motorist insurance. Does that mean I'm paying for insurance for other people who aren't paying?
People drive without insurance for a number of reasons. You are responsible for paying your medical and hospital bills that result from an accident even if it is caused by an uninsured driver. The cost of an emergency room visit or hospital stay can add up quickly and become a financial burden. Many families go bankrupt due to uninsured medical bills. Without this important coverage, you may find that there are limits and caps on your own policy. Your health insurance also may not cover the entire gap. Because we spend so much time in our cars it is a very good idea to purchase Uninsured Motorist coverage AND Under-insured Motorists coverage. It is not expensive and it provides financial resources to you in case you are hurt by someone without any insurance.
In many states, the injuries caused by a "hit and run" driver would also be covered under the Uninsured Motorist coverage. Because this can be different from one state to another, you must check your policy and verify your coverage with your agent or company. Purchasing insurance on the Internet may not provide the coverage you need if you are not insurance savvy. | 03.11.14 @ 16:13
Erin, Nancy makes great points so I'll simply add this: If you were in an accident with someone who did not have insurance, and it happened to be their fault, your insurance company and / or attorney would have no one to make a claim to in order to have your own medical bills / time loss from work, etc. covered and you'd be forced to use your own insurance coverage for this. Your policy may not cover everything you need and it could also drive up your own insurance rates. For the small amount of cost, this insurance is truly a bargain after the fact. I would advise any client to always have this coverage. Life happens and you just never know. | 04.17.15 @ 17:56