With an estimated twelve to fourteen percent of motorists on the road today driving without any insurance coverage whatsoever, uninsured or underinsured coverage is an important part of any auto insurance plan. In the event of a vehicle collision, many expenses may pile up; car repair or replacement, medical bills and lost wages are all expenses that need to be taken into consideration when deciding on the amount of coverage you require.

Uninsured Motorist Coverage

When an uninsured motorist causes damages to you or your vehicle and is at least partially at fault, uninsured motorist coverage on your automobile insurance plan will cover both repair expenses and medical expenses up to the amount allowable by your plan. If you do not have this coverage, you will not be reimbursed by your insurance company in the event of a collision with an uninsured driver; in addition, uninsured motorist coverage also covers you in the event of a hit and run event, where the other driver does not stop to give you his or her insurance information. The financial safety and peace of mind afforded by having this type of coverage on your automobile insurance plan very often outweighs the required increase in premiums; in fact, some states, especially those with large numbers of uninsured drivers, legally require that drivers carry uninsured motorist coverage on their insurance plans.

Underinsured Motorist Coverage

Many drivers carry insurance that conforms to only the state-mandated legal minimums. In the case of an insurance claim with these drivers, their level of coverage may not be enough to pay medical expenses that you incur after the accident. Underinsured motorist coverage on your auto insurance plan will cover the gap between their liability insurance and your expenses. For example, if you incur $250,000 in medical expenses as a result of an accident, and the other motorist is only insured for up to $100,000 in personal liability, the insurance company of the other motorist will only pay up to that maximum amount. Without underinsured motorist coverage, your only recourse in such a situation is a lawsuit to recoup expenses; however, even in the event of a judgment in your favor, the other motorist may not have the necessary personal funds to pay the remainder of your medical expenses. Underinsured motorist coverage on your car insurance makes you much safer in the event of a car accident, because your financial well-being is not contingent on the other motorist's level of car insurance coverage or ability to pay.

Overall, car insurance with uninsured or underinsured coverage functions as a guarantee that a driver that is partially at-fault in a collision will not ruin your finances, regardless of his or her level of insurance coverage. Auto insurance with this coverage safeguards both your peace of mind and your financial stability in the event of an accident. For more information, check out http://www.unitedsecurityagency.com.