Avoiding Gaps In Car Insurance

Signing up for car insurance is the first step to remaining compliant with all state driving laws and being a responsible, safe citizen while on the road. Though the majority of states require minimum liability coverage, this level of insurance is merely a ground floor and shouldn't be the only type of auto policy you hold. In fact, liability coverage covers only a small portion of costs in a limited number of circumstances, so the rewards are hardly grand.

Having insurance comes down to knowing which policies to purchase to stay on top of damage costs or medical expenses. However, many people have gaps in their coverage, which leads to insured drivers having to pay out of pocket because they simply didn't have the foresight to buy a more comprehensive plan. When this occurs, you could be left with higher premiums and additional costs that your insurance company doesn't pay. The key is identifying where your coverage is lacking and making sure you're filling all the gaps.

One of the most common instances where gaps in auto insurance come into play is when another driver doesn't have insurance at all. Millions of people choose to drive without insurance despite it being against the law. Further, if you get into a wreck with an uninsured driver, your liability coverage doesn't pay for your damages - it pays for theirs.

If the other driver is at fault and doesn't own insurance, then who's to pay for your expenses?

Dealing with the uninsured

If you're looking to keep your monthly insurance rates low but are wary of being the victim of an accident with an uninsured driver, then you can purchase additional coverage at a minimal cost. Known as uninsured motorist coverage, this policy will pay for your expenses in the event the other driver does not have insurance.

In addition, this plan is beneficial to you because it pays for costs regardless of who was at fault, which means it will come in handy in every situation. If you're the victim of a hit-and-run, then UM coverage applies as well. This policy provides protection against those who aren't as responsible as you.

However, there are limits that you should be aware of. For instance, the most basic form of UM coverage doesn't protect against property damage. If your car is considerably damaged, then the expenses are still yours to pay. UM coverage typically applies to only medical costs, emergency room visits and lost wages if you're not able to work.

There are policy additions that can be included if you're inclined. Though some states do not even have companies that carry uninsured motorist property damage coverage, this plan will factor into car repairs as well. This added benefit provides you with greater protection, covering both bodily harm and vehicle-related costs.

Speak with your insurance agent to update your car insurance package today.

CoverHound can help you find quotes online and provides industry-leading assistance for drivers in the U.S.