When you pay for car insurance, you spend hundreds of dollars for something you hope you will never have to use. After all, car insurance is based on liability, which means you would only make a claim against your own policy if you caused a wreck.
However, some drivers pay extra for coverage that protects them rather than other people after a collision. Uninsured and underinsured driver coverage is optional in Pennsylvania, but it can be valuable if you are ever in a situation where you need it.
Many drivers don’t have insurance
Everyone with a driver’s license knows that state law mandates liability insurance coverage. You can’t drive if you don’t have a policy on your vehicle. Unfortunately, while you have always carried the insurance you need to be safe on the roads, not everyone does the same thing.
There are always a few people willing to gamble with their own financial future and the well-being of others by letting their policies lapse. There are even more people who only carry the bare minimum insurance required by law, which may not be nearly enough to cover your medical treatments or replace your vehicle after a wreck.
When another driver doesn’t have enough insurance coverage, uninsured and underinsured motorist (UM and UIM) coverage is an important protection for you. It allows you to make a claim against your own policy for medical costs, lost wages and vehicle expenses not covered by the other driver’s policy.
You could lose thousands without the right coverage
A driver who only carries as little insurance as they can while legally driving passes some of their financial responsibility off to you. You have to proactively carry coverage to protect yourself from long-term financial losses. UM and UIM coverage is one way to do that.
Figuring out the value of a major claim can be difficult, especially if you need to claim future medical care or lost wages. Trying to negotiate with two insurance companies at once can also be challenging in a UIM claim scenario.
Identifying your biggest risk factors on the road can help you carry the best coverage and connect with the most compensation possible after a car crash.