Most people are anxious to get to the office of their insurance agents as much as they want to visit their dentist. Insurance is complicated and forms intimidating. In most states, car insurance is required by law. It is dangerously easy to think of insurance dollars as pennies. But if you are ever the victim of a serious accident caused by the negligence of another driver, you are at the mercy of his insurance coverage – unless you are smart enough to have under-insurance coverage. assured reasonable.
Car insurance is required to protect the other driver from your negligence. Liability insurance does this and is usually purchased on a ladder. For example, a 25/50/25 liability insurance policy covers a driver you injure for $ 25,000 per driver, $ 50,000 per accident for bodily injury and $ 25,000 for property damage. The amount of this coverage is set by law, which requires you to have some minimum coverage. The more coverage you have, the less you will have to pay for a judgment in a lawsuit on your own. But if your pockets are empty, it’s easy to find yourself looking for bargains when you buy a policy.

You cannot refuse uninsured coverage. If a driver hits and injures you and is uninsured, your uninsured coverage is your source of recovery. In most states, the law requires uninsured coverage for the same amount as your liability coverage. In this way, drivers who obey the law and carry insurance are never forced to pay for the negligence of drivers who are not as careful.
There is a type of voluntary coverage that can be denied, but these are the pennies that you shouldn’t be pinching. Underinsured motorist coverage is the part of your policy that will provide you with additional coverage in the event of a serious injury in a car accident. If the other driver has only minimum limits, an injured driver may find that their medical bills alone are more than the other driver’s policy. In this case, there would be no cover to pay for your pain and suffering or lost wages unless you provide it from your policy. Yes, your lawyer could ask for damages on the other driver’s property. But, will you play the cream of a rich man carefree enough to expose his wealth to a judgment of personal injury? The odds are longer than those that favor the house in a casino.

You can purchase underinsured coverage in at least the amount of liability insurance you hold and some insurance companies will allow you to purchase more. If you are allowed to buy more and can afford it, splurge on this part of your policy. You protect yourself, your spouse and your children, so be generous with this part of the budget.
When you purchase auto insurance, you will be offered underinsured coverage, which is not mandatory but should never be rejected. It offers you, your spouse and your children, additional coverage that will pay for bodily injuries suffered by a negligent driver with minimum limits insurance. In today’s economy, minimum limits are more the norm than the exception. Underinsured motorist coverage gives you the security of knowing that you and your family are protected.