Coverage on the road has numerous facets. You want to protect your own vehicle and passengers, but you also have a responsibility to drive safely in order to protect other drivers and their vehicles. This is why Auto Liability Insurance is required in all 50 states — as it provides protection to those affected by an accident caused by the policyholder.
In fact, liability coverage is so important that you can increase your policy limits by adding on Umbrella Insurance. Essentially, Umbrella Insurance adds another layer of financial protection onto underlying policies. So for Auto Insurance, umbrella coverage increases liability limits to offer even more financial protection in the event of an at-fault accident. But what happens if the accident involves an uninsured motorist?
If You’re Uninsured
First off, it’s important to note that it’s illegal to drive without insurance. But if you find yourself doing so and you cause an accident, things could get messy. Technically, you would be responsible for the damages to the other driver(s).
Without your own Auto Insurance policy to pay, the other driver would have to rely on the Uninsured/Underinsured Motorist portion of his or her auto insurance policy. If the other driver does not own this coverage (or if the limits aren’t high enough), he or she could sue you to recover the cost of damages. The best thing you can do is to take care that you remain insured while on the road.
If Another Driver is Uninsured
On the other hand, if an uninsured driver crashes into you, you may be able to turn to your Auto Insurance. Like above, Uninsured/Underinsured Motorist coverage is a big help in this area. It can assist with paying your expenses if the other driver’s insurance cannot.
But even with this coverage on your vehicle, there will still be policy limits. Umbrella Insurance can increase those limits to better protect you while behind the wheel. Better yet, your independent agent can personally assess your coverage needs so your policy offers just what you need.
Are you covered? Contact Clockwork Insurance Services, Inc. for more information about the auto insurance policies we offer.