If you are involved in an accident that is another person’s fault, trying to figure out who is responsible for paying what can sometimes get to be a little confusing. This is especially true if the other party does not have enough money or insurance coverage in order to pay your claim. This is the reason that it is important for you to carry uninsured/underinsured coverage as a part of your auto policy. But exactly how much coverage do you need? Understanding what it will cover, as well as several other factors, may help you choose the correct amount of coverage.
What Will Your Uninsured/Underinsured Insurance Cover?
When you are involved in an auto accident, it can quickly become expensive. You may be looking at the following:
- Hospital bills
- Rehabilitation
- Medications and other medical devices
- Time out of work
- Vehicle repairs
- Temporary transportation and more
You may even have to pay someone to take you to your medical appointments, as well as incur other incidental expenses. Unfortunately, if the driver who hits you does not have insurance, or does not have enough insurance to cover your expenses, you will be responsible for the remainder.
If you have adequate uninsured/underinsured motorist coverage, you will be able to file your claim against your policy. Your policy will then make up the difference, or pay for your claim up to the limits that you have chosen to put into place.
How Much Uninsured/Underinsured Coverage Do You Need?
Most states offer a lot of flexibility in allowing you to decide how much uninsured/underinsured coverage you are required to have. While many people choose to match the amount of this coverage with the amount of bodily injury liability they take out, this is not required. When choosing your coverage limits, consider the following:
How much is your car worth? The average cost of a new car is now more than $33,000. Luxury high-end vehicles, or those with a lot of options, can cost a whole lot more. This means that if you only have $30,000 worth of coverage and an uninsured driver hits you, you will not have enough coverage in place to fully replace your vehicle. Consider carrying at least enough coverage to replace your vehicle if you have to.
What type of health insurance do you have? The average costs of one day in the hospital could easily exceed more than $1,700. If you ended up in acute or intensive care, it could quickly triple, or even quadruple that. Even an emergency room visit with x-rays and other types of testing could exceed $2,000.
If you have private health insurance, your health insurance would have to cover these expenses no matter who was at fault. Unfortunately, you would still be responsible for your co-pays and your deductibles. Just think, if you have a $30,000 hospital bill, and your health insurance is an 80/20 plan, you would still be responsible for coming up with $6,000 of that bill out of pocket.
Do you have access to short-term and long-term disability insurance at work? Could your household afford for you to be out of work for an extended period of time with no income coming in? If you are in an accident with an uninsured/underinsured driver and they do not have enough coverage, you may not be able to be reimbursed for your loss wages as a part of your settlement.
If you have access to short-term and long-term disability insurance through your employer, this will help to offset the wages you may not be receiving. You will at least have some type of income coming in while you are recovering.
If you are involved in an auto accident, after you receive the medical care you need, you need to contact an experienced accident attorney. They will know how to work with the other person’s insurance company, as well as your own, to ensure that you are fully compensated to the limits of any insurance available. There is no harm in increasing the amount of uninsured/underinsured coverage that you carry. If you ever have to use it, you may benefit from it more than you could have ever imagined. Visit http://daglawteam.com for more info.
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