Why Today's Economy Means That Drivers Need To Have Enough Car Insurance Coverage
It is important for drivers to have enough coverage on their vehicles because every year millions of accidents both minor and major occur on roads everywhere. It pays to have under or uninsured motorist coverage because in the United States almost fourteen percent of drivers are currently uninsured. The two states that have the highest number of uninsured drivers are Florida and Michigan which are coincidentally no fault car insurance states.
The state of Florida’s uninsured driver rate is above 23 percent while Michigan’s is almost 20 percent. Almost 33,000 people die each year in car crashes while over two million are injured so it is a good idea to know if you have enough coverage because not knowing can have huge financial consequences.
For example, a person who is at fault for a four car pileup and has basic liability insurance coverage could walk away owing the victims hundreds of thousands of dollars. Most people think that having an insurance card will protect them financially but now the average compensation awarded for larger accidents exceeds $180,000.
This is a hefty sum for people to have to pay out of pocket if they are uninsured or are underinsured. Most minimum liability coverage policies offer drivers between $25,000 and $50,000 worth of coverage. It is important for drivers to have underinsured motorist coverage because the driver who hits you might not have enough coverage to pay your hospital bills.
One young college student was driving his car when a drunk driver hit him after crossing over the yellow line. The man had only $50,000 but the student had $500,000 worth of underinsured motorist coverage which paid for all of his medical bills. It was a financial lifesaver for him.
Most people would be shocked to learn that spending an extra $200 to $250 per year on car insurance coverage can increase their minimum liability coverage to one million dollars. Health care costs are expensive and the college student had to have multiple operations and even radiation treatments. If drivers are not insured enough then they can end up having to file for bankruptcy.
Many drivers think that just doing the bare minimum is more cost efficient for their personal finances. While this may seem to be the case, it is not in reality. This is a day and age where people drink and drive, text, talk on the phone and get distracted everyday while driving. Anyone who is in a car can be a victim so having additional coverage is an important safety net to have in place.
Drivers should consider having underinsured and uninsured motorist coverage because it is quite affordable. It is worth the extra expense especially for drivers who live in states with high percentages of uninsured drivers.
