Why do you need uninsured motorist coverage?
Even though car insurance is mandatory in RI, meaning that everyone is legally required to have it, did you know that estimates show approximately 15% of cars on the road in our state are uninsured? That is a lot of people!
So contrary to what some may think, uninsured motorist coverage is important! Uninsured motorist coverage protects you from people who don’t have insurance or who don’t have enough insurance. Basically, the coverage takes the place of what the other driver should have purchased but didn’t. We know it doesn’t seem fair, but unfortunately, it’s the way our system works. We don’t make the rules, but it’s our job to explain them to you!
Here are two examples of how uninsured motorist coverage works:
If you are rear-ended by a driver without insurance and he damages your car and you are injured in the crash, the only way that you would be able to be reimbursed for the damages and for your injuries would be to utilize your uninsured motorist coverage.
You could also be involved in an accident with someone who does have insurance, but their liability limits may not be enough to pay for your damages. For example, if the damage to your car is $40,000 and the other person only has $25,000 of coverage (the state minimum limit for property damage liability), then you would have to use your uninsured motorist coverage to pay the difference.
In RI, you can decline to purchase uninsured motorist coverage if you are only buying a policy with the state mandated liability limits (Read our blog about RI Car Insurance Requirements). However, if you are purchasing higher limits, then you must purchase a minimum amount of uninsured motorist coverage as well. We strongly recommend this coverage to all of our clients.
For further information on uninsured motorist coverage or auto insurance, visit us online or give us a call at (401) 723-8510.