2 Types Of Optional Auto Insurance You Should Not Decline

Insurance Blog

When purchasing an auto insurance policy, the law requires you to purchase liability and bodily injury coverage. If your vehicle is currently being financed, your lender may also require you to purchase collision and comprehensive coverage. Any additional coverage will be completely optional. Unfortunately, many people automatically choose to decline this optional coverage simply to save a few dollars on their monthly insurance premiums. Before you make this same mistake, you should take the time to learn more about the two types of optional auto insurance coverage you should not decline. 

Uninsured Motorist Coverage

Currently, the law requires that drivers in all states maintain basic liability coverage in order to legally operate a vehicle. Unfortunately, the laws that mandate this coverage are just like any other type of law in the fact that there will always be some individuals who choose to break the law. If you are ever involved in an accident with a driver that does not have insurance, you have the legal right to sue this individual in order to collect any damages that you are due. The problem is that collecting on a civil judgement can take quite a long time and there is no guarantee that the individual will ever pay this debt. Uninsured motorist coverage provides you with an alternative way to collect the damages that you are entitled to by allowing you to file a claim with your own insurance company even if the other driver was found to be at fault for causing the accident. This will allow you to get the money you need to make vehicle repairs or cover medical costs much faster than pursuing a civil lawsuit. 

Underinsured Motorist Coverage

Just as the law requires that people carry auto insurance, the law dictates exactly how much coverage people must have. In many cases, individuals will choose to purchase an auto insurance policy that provides nothing more than the bare minimum required by law. The problem with this is that insurance policies that only provide the minimum amount of coverage may not provide enough coverage to take care of all the costs associated with your accident. For example, if you are driving a new or expensive vehicle, the minimum amount of property damage coverage may not be enough to cover the value of your vehicle. The minimum amount of bodily injury coverage may also fall short if you are seriously injured in an accident. Underinsured motorist cover provides you with additional coverage in order to close the gap between what the other driver's auto insurance covers and what your actual out-of-pocket costs are.  

For more info, contact a local auto insurance company. 

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