Should I Carry Uninsured or Under Insured Motorists Coverage?
What is Uninsured Motorists coverage and how does Uninsured Motorist coverage work? Uninsured Motorists (UM) and Under-Insured Motorists (UIM) coverage is there to protect you. If you’ve ever been in an accident, you know the immediate, sickening feeling that follows. You also know how that feeling mounts when you start wondering if the at-fault driver has insurance or enough insurance to pay your damage or medical bills. Now imagine how sick you’d feel if you did find out the driver didn’t have coverage or speeds off, leaving you with the bill. Stats show that at least 1 in 7 drivers in Mississippi are driving without car insurance.
If the person that caused the accident is uninsured and can’t pay for your medical bills, legal costs, property loss, and other incidental expenses like lost wages, the UM/UIM coverage on your policy would pay for these things. If you don’t have this coverage and the person at-fault doesn’t have insurance, you could be out of luck when it comes to recouping any damages, losses, or expenses you incurred from the accident. The only thing you could do is take the person to court and cross your fingers, but odds are, if they don’t have insurance, they’re probably not going to have thousands and thousands sitting in their checking account to pay for your damages. If you’re lucky, they’ll have assets that can be seized to pay for the judgment, like a home or savings, or have substantial wages to garnish. Once again, they probably don’t have enough in assets to cover your losses either. If they’re employed, their wages can be garnished until the judgment is paid, but states have limits on how much a person’s wages can be garnished, meaning it could take a very long time for you to see any compensation. Worse yet, wages can only be garnished if someone is employed and for as long as they stay employed. What happens if the person is self-employed, retired, or starts working under the table to avoid garnishment? Unfortunately, the odds are against you if you’re in an accident with someone who doesn’t have auto insurance.
What if the person who hit you has insurance, but it isn’t enough to cover your bills? Read up on Under-Insured Motorists Coverage.
Call or email Pearson & Company Insurance to quote your auto insurance policy, (601)482-6699.