Most people are still sticking to their budgets due to the financial situation of the nation. This usually means that families are looking for ways to cut costs and reduce their budget. Sometimes, necessary insurance coverage is cut or never added in efforts to save money. Not having the coverage can cost you more in the end.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage usually won’t protect you in the event of a true hit-and-run where the driver of the at-fault vehicle is not ascertainable. Meaning, neither of these types of policy coverage will apply if the police don’t find out who hit you. Sometimes, there is just no way to find a hit-and-run driver and it can cost the innocent driver a lot.
Most insurers follow logic where it relates to uninsured and underinsured claims. If you can’t point to who the driver was, then you can’t legally declare that they didn’t have insurance or that they didn’t have enough insurance. That means that the uninsured and underinsured motorist coverage that you pay for won’t pay a dime in this situation.
Liability insurance is great because it protects you by paying claims when you are the at-fault driver. What protects you if you are not at fault, but the person at fault is ascertainable? Collision insurance protects you in the event you are the victim of a hit-and-run driver. If a person has no collision insurance then the ramifications could be very serious.
Say for example you have a car that is paid for in full and worth $10,000. You are hit by a drunk driver who runs from the scene and is never located by police. Insurers will not pay one penny for your claim under your liability policy. You are left with a mangled piece of metal that may be worth $300 if scrapped. That fact alone makes a collision policy worth paying.
An umbrella policy may also protect you from the issues that arise in a fatal hit-and-run situation. If someone dies as the result of a hit-and-run, an umbrella policy may help with the property damage and pain and suffering damages that may be in order.
The amount of umbrella policies sometimes makes people shy away from them. An umbrella policy may be for $500,000 coverage, but may not increase your policy premium by much at all. An umbrella policy may come into play if there is a really bad hit-and-run accident with excessive medical bills.
Nobody expects to find themselves the victim of a hit-and-run driver but accidents do happen. Whether that driver runs because they are drunk or they run because they don’t have a driver’s license, you are left to pick up the pieces. Protect yourself, your family and your wallet by making sure your coverage protects you in the event of a hit-and-run driver.
Everyone should examine their current insurance coverage to determine if they are protected in the event of a hit-and-run. Check with your insurance agent to clarify what policies will protect you and what policies you may need to revise.