KNOW WHAT TYPE OF UNINSURED MOTORIST COVERAGE YOU HAVE. IT CAN BE REALLY IMPORTANT IF YOU ARE INVOLVED IN A SERIOUS CAR ACCIDENT.
It is vitally important that you know what type of uninsured motorist coverage you have. Most insurance agents do not take the time to explain to consumers (you) the various types of auto insurance policies and products available. As a result, many people learn what type of coverage they have after they have been injured in a car accident by a driver that has no or insufficient insurance coverage. Unfortunately, you cannot modify your insurance coverage after you have been injured in a car accident. Today's Tip of the Day takes no more than 5 minutes but it could be the difference between you and your family receiving adequate compensation following a car accident or not. First, you must know the policy limits of your uninsured/underinsured motorist coverage. Second, and perhaps most importantly, you must know if you have add-on or reduced-by uninsured motorist coverage.
As explained in the video here, added-on uninsured motorist coverage means that your available recovery following a car accident is increased. For an added-on uninsured motorist policy, your available policy limit is added on top of the at-fault party's insurance policy. Let us presume that your injuries are valued at $50,000.00. The at-fault party (the driver that caused your injuries) has $25,000.00 in available liability coverage. If you have $25,000.00 in added-on uninsured motorist coverage, your available coverage will be $50,000.00. If you have reduced-by uninsured motorist coverage, your maximum recovery will be $25,000.00, and you will not be adequately compensated for your injuries resulting from the car accident.