Risks Of Not Enough Insurance Coverage

What is Uninsured/Underinsured Motorist Coverage?

Some states require drivers to carry uninsured/underinsured motorist coverage, which extends to you and your passengers if you are involved in an accident in which you are not at fault. This coverage will pay your and your passengers' medical bills up to the policy limit if the at-fault driver does not have insurance or their insurance is insufficient to cover the injuries you incur in the accident. Even if your state does not require this coverage, purchasing it is a good idea. The upfront costs of injuries resulting from an accident can be large, but if you need ongoing care due to your injuries, this coverage can help cover some or all of that cost.

How to Get Car Insurance if You are Uninsured

If you are currently uninsured, it's time to get covered. Consult with your state's Department of Motor Vehicles to determine the minimum required liability and property damage limits for your state. You can purchase a car insurance policy through an independent insurance agent, directly from an insurance company or by using an online rating tool such as A-MAX Insurance to get quotes from multiple insurance carriers. Regardless of where you purchase your insurance, buy as much liability and property damage coverage as you can afford to protect yourself financially. Also, consider purchasing personal injury protection, medical payments coverage, or uninsured/underinsured motorist coverage to protect yourself better.

Whether you are purchasing your first policy or have had a lapse in your car insurance, buying a new policy can be expensive, but protecting yourself and the others on the road is necessary. To make sure that your auto insurance is affordable for you and your budget, be sure to ask your insurance agent or insurance company about discounts you may qualify for, such as:

• Good Student Credit: This is a discount awarded to drivers under 25 who are enrolled full-time in school and have a grade point average of 3.0 (B) or higher.

• Driver Training Discount: If you have completed an optional driver training program, you usually qualify for a credit.

• Distant Student Credit: If you are a student and attend a school that is more than 100 miles away from your home and you do not have a car on campus, you can qualify for a distant student credit because you will not have access to a vehicle full-time.

• Tracking Device Credit: Most car insurance companies offer discounts if you sign up to use their mobile app or install a small device that reads your driving activity and reports to the insurer.

• Billing Discounts: If you are willing to pay your car insurance policy in full when you purchase it or allow the insurance company to directly debit your checking account or charge your credit card for your monthly insurance payments, there is usually a discount through your car insurance carrier.

• Homeownership Discount: Some car insurance carriers will give you a discount if you own a home.

• Bundling Discount: If you have a home or renter's insurance policy with the same carrier through which you purchase your car insurance, you will be eligible for a bundling discount, which can save you up to 20% on your car insurance premium.

• Veteran Discount: If you are serving or have served in the U.S. military, your car insurer may offer you a discount for your service to your country.

These discounts can make your car insurance policy more affordable and allow you to buy more of the coverage you need.

Not Enough Insurance FAQs

Q: What happens if I cause an accident and do not have car insurance?

A: If you cause a car accident while uninsured, you may have to pay fines and possibly serve jail time. Your driver's license and vehicle registration may be suspended, and your vehicle may be impounded. In addition, you will be responsible for the cost of the injuries you cause to others and the damage to their property, as well as your own, out of your own pocket.

Q: How much liability insurance should I buy?

A: You should buy as much liability insurance as you can afford to protect yourself from financial ruin after a serious car accident.