Many motorist think having uninsured and underinsured insurance is a waste of money. The truth is that it is just the opposite. In the case of an accident uninsured and underinsured insurance will save you more money than you can imagine. Nearly every state now requires motorist to have uninsured and underinsured insurance as part of their policies
To really understand why uninsured and underinsured insurance is so important you need to understand what they are. Uninsured motorist insurance is insurance that covers your repair cost when the other person does not have insurance. It replaces the insurance they should have and it will pay your cost up to the amount that your policy covers. Underinsured motorist insurance covers your cost when the person at-fault’s insurance enough to cover the cost. The underinsured insurance picks up where their insurance leaves off and goes all the way to the max of your policy.
By definition alone it is clear that this insurance is meant to help protect you not swindle your money. There are more people driving around with little to no insurance coverage than most people realize. In the case of an accident not having this extra coverage could leave you paying for quite a bit out of your own pocket. There is a way to recoup some of your money when this happens. Online companies offer discounts via a website called Groupon.com. By going to their website, you can have access to all the discount a company has to offer. This includes companies such as rental car companies. Other than these discounts the rest of the cost will fully be on the motorist without the uninsured and underinsured insurance coverage.
There are exceptions in most uninsured and underinsured insurance policies. The common ones are if you’re transporting someone and charging them a fee, if it is owned by the government, a railroad car, and if it being used as a residence (campers & trailers). There is also the exception of when it really doesn’t make sense to carry uninsured and underinsured insurance. This would be in any state that is a no-fault state. The in no-fault state, the motorist are required to carry personal injury protection insurance. This covers the entire cost for your injuries no matter what the other person has for insurance. The other exception would be if you carry comprehensive and collision insurance. With this insurance, any car damage will be covered, regardless if the other driver is insured or not.
Unless you fall into one of these three exceptions, not having uninsured and underinsured insurance policies, just does not make sense. It is always to have the coverage in case something happens than it is to have something happen and to be stuck with the cost all out of pocket.