Uninsured Motorist Coverage vs Underinsured Motorist Coverage

Your car insurance policies may vary in their coverage. Such is the case of these important coverages: Uninsured Motorist Coverage, which protects you from a guilty driver who does not have auto insurance; and Underinsured Motorist Coverage, which protects you from a driver whose insurance is not enough to cover the costs of an accident.

Expanding a little more on these coverages, coverage against uninsured drivers is a part of your auto insurance that protects you, your passengers and your car in case of injury or damage when the guilty driver does not have car insurance.

Coverage against an uninsured or underinsured driver is one of the four components of a complete auto insurance policy. The other main components are civil responsibility, shocks and all risks, and MedPay / PIP.

The national average of uninsured and outstanding drivers is 12%. It may seem like a smaller number, but it means that at an intersection with traffic, there is likely to be at least one uninsured driver. In some states, those rates increase significantly. The state of Florida maintains the lowest rate of people driving insured, according to a report from the personal finance company SmartAsset, 73% of drivers lack insurance.

On the other hand, the coverage against drivers with insufficient insurance covers the injuries caused by a driver who has insurance, but their policy is insufficient to pay all medical expenses.

If you are involved in an accident caused by an underinsured driver, your costs may not be covered by your policy. Coverage for underinsured drivers can protect you in the following cases: coverage for bodily injury caused by underinsured drivers can pay lost wages for you and your passengers; and medical care expenses, among others, in a covered accident that exceeds the limits of the policy of the driver responsible for the damages.

Coverage for property damage caused by underinsured drivers can pay the costs of damage to your car or other property, such as a fence or mailbox, in a covered accident that exceeds the limits of the policy of the responsible driver of the damages.

The Florida insurance law imposes a duty on all drivers to have minimum insurance coverage of $10,000 in personal injury protection (PIP) and $10,000 in property damage insurance. Unfortunately, many people in Florida drive without insurance and in most cases choose to get a minimum insurance policy that may not be enough at the time of an accident.