Automobile Liability Insurance and What You Are Buying
By: Rachel Scott Decker
Underinsured motorists coverage is similar to and just as important as uninsured motorists coverage. This insurance provides benefits to you and to family members who live with you when someone else injures you and that person has insurance, but not enough to cover all of your damages. For example, if the person who hit you only has $30,000.00 in insurance, and your medical bills, lost wages, and other damages are more than $30,000.00, your insurance will pick up the difference. Like with uninsured motorists coverage, the state allows people to reject this coverage if they do not want it. Also like uninsured motorists coverage, the difference in premiums for this type of insurance is negligible. Generally speaking, people should not reject this coverage.
Finally, you can purchase medical payments coverage. This coverage will reimburse you for medical bills up to the amount purchased when you are hurt riding in an automobile, regardless of who is at fault in causing the accident, and regardless of what car you were riding in at the time of the accident. It will also pay the medical bills up to the amount purchased for anyone that is hurt while riding in your car, even if you were not at fault. This coverage can be extremely helpful right after a car accident and the insurance companies are arguing over who was at fault in causing the accident because it permits initial medical bills to be paid, no matter who was at fault.
Understanding what insurance you are purchasing can make the decisions surrounding the purchase of insurance a lot easier. It can also prevent headaches later when an accident happens, because you will know what you have bought.