subject: The Problem With Uninsured Motorists [print this page] When you buy car insurance, your state has specific guidelines that it must meet. However, there are often options on the table that sound like a great way to save money but can have major costs later on. Here we're going to study uninsured motorists and how they impact you.
One of the first things you to know about personal injury coverage is that every state in the United States will have different rules on who is liable for what. Hence, while we will give some general advice, it is absolutely necessary to talk to your agent about what is needed in your state. (Further disclaimer: we are neither professional agents nor are we providing professional advice). With that said let's get under way.
If you get into an accident, one of the many important things that are decided is who is at fault. This is important because it may determine whose insurance is responsible for the bulk of any cause in bills of medical and repair. If the other driver has no insurance for example, and your personal liability coverage is lacking, basically you are in one deep chasm with the other guy. That's why some or most states will have mandatory laws for auto insurance.
One of the best ways to avoid any problems is to have adequate liability coverage, with left over amounts for the other side if needed. In fact, in many states you can actually sue or be sued for issues of injury or damages. That is why it is crucial to have good personal liability coverage in your car insurance.
There is also a category of drivers who don't have adequate liability coverage. Here, provided that this is a case where is the other drivers fault, your own insurance program will pay benefits to you, since the other guy has inadequate coverage. Of course, this is why lawsuits are available. You can sue and try to collect what is fair in terms of damages received.
A good rule of thumb is to buy enough coverage so that you can cover the injuries that you might get yourself as well as the other guy's problems. Even though it may not seem fair to provide for the other person, especially when it's an uninsured motorist's fault, that is what most states have decided (since somebody needs to pay the bills). The term for this type of coverage is actually sort of an oxymoron and it is called reverse liability. It is sad that if the other person injures you and he has no insurance, your insurance ends up paying you.
There are other strange clauses that apply in certain states and not others. For example, some states require liability coverage to also include lost wages. Now if you're at fault and the other guy demands as lost wages as well, you can imagine how things might get messy if you don't have adequate personal liability coverage in your car insurance.
by: Casey Trillbar
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