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Why do I need to cover uninsured and insured motorists on my car insurance?



  Alan Galvez Insurance - Uninsured Drivers and Insured Drivers Coverage There are several reasons why we recommend uninsured motorists coverage in your Ohio car insurance. Before we dive too deep, however, it is always a good idea to start with some definitions. Because if you are not in the insurance industry like us, you may not know what uninsured motorists' coverage really is and what it does. We start with a discussion about the three different types of uninsured motorists' coverage (with examples from real-life claims) and then end with reasons why you should consider having one or all three on your insurance.

What are uninsured motorists Liability for bodily injury? (also known as UMBI)

This coverage provides coverage for bodily injury to you and the occupants of your car who are injured in an accident caused by another vehicle that has no liability insurance. It is important to note that this is an OPTIONAL coverage in the state of Ohio. It is also important to note that it may match your limit for personal injury liability OR be at a lower limit, but can NEVER be higher.

Here's an example of what a car insurance policy would look like in Ohio:

Personal injury liability – $ 100,000 per person / $ 300,000 per accident

Uninsured drivers Liability for bodily injury – $ 100,000 per person / $ 300,000 per accident *

* may be lower – for example $ 50,000 per person / $ 100,000 per accident.

Here is an example of how UMBI would work in a tort situation:

You are hit by another vehicle. The other driver is wrong. Both you and your passenger are injured. The other vehicle is not insured. In this situation, your car insurance pays up to the insurance limit for damages to you and your passengers. Let's say you have $ 100,000 per person and $ 300,000 per accident for UMBI. This means that your insurance will pay up to $ 100,000 for you and up to $ 100,000 for your passenger for bodily injury caused by an uninsured vehicle.

What is the liability insurance of underinsured motorists (UIMBI)?

This is similar to uninsured motorists bodily injury, except that the other vehicle is insured but does not have sufficient coverage to pay for the damages.

Here is a UIMBI statement that actually happened to one of our customers:

Our customer (let's call him George) drove in the country . Another driver (let's call him Fred), drove a stop sign and t-legged George. The other vehicle was insured at the lowest limits (which at the time of the accident were $ 12,500 per person and $ 25,000 per accident for bodily injury liability). George's medical bills amounted to $ 125,000. The other company paid the insurance a maximum of $ 12,500 per person and closed the claim (because a maximum is the maximum after all). That left $ 112,500 of medical bills left to pay.

George filed an underinsured motoring claim under his car insurance to help pay the excess costs. Let's say George had $ 50,000 per person and $ 100,000 per accident for UIMBI. Before you think he's raising a whopping $ 112,500, we need to talk about Ohio law that prevents "stacking boundaries." It is designed to prevent you or your passengers from collecting MORE than what is available in policy ONLY. So in this example, the most UIMBI available is George & # 39 ;s $ 50,000 limit per person because it is the highest limit available for his policy. This leaves a balance of $ 62,500. Either George would need to use his health insurance or sue Fred in civil court. Catalog

Side note – This is a good case for buying a higher liability limit and then uninsured / underinsured motorists' coverage. It protects you from situations like above.

What is uninsured damage to motorists' property? (UMPD)

This covers property damage to your vehicle. So if your car is damaged by an uninsured driver, you can use this coverage to get the vehicle fixed. It is purchased at a fixed coverage limit ($ 7,500 is the lowest available with higher limits available) and with a deductible.

So now that we've defined the three types of uninsured / uninsured motorists 'coverage, let's go into the reasons why we recommend uninsured motorists' coverage on your Ohio car insurance. insurance to pay for damages that you or your passengers suffer. The state of Ohio only requires a limit of $ 25,000 per person and $ 50,000 per accident to be considered "financially responsible." For the sake of cost savings, many people buy this lower limit. You must buy an amount that protects YOU and your passengers. It's the only thing you have control over.

  • If you follow this idea, if the other vehicle does not have sufficient liability insurance and you have to sue, it does not necessarily mean that you will get the money. . What happens if the vehicle owner has no assets or very few? Nothing to collect from there. If the vehicle owner is employed, payroll decoration is an option for collection. But what if the person is unemployed? Again, nothing to collect from. If there is nothing available to take, no money will come your way.
  • If you do not have health insurance, UMBI / UIMBI gives you a way to help pay for your accident-related injuries. Otherwise you pay out of pocket.
  • Even if you have health insurance, if you have a higher deductible (let's say $ 2500 or $ 5000 which seems to be even more common now), you will pay by pocket up to that deductible before the insurance starts paying. It is important to note that many health insurances contain a provision that any damages related to a "car accident" must be paid for by someone else valid and collectors' insurance before paying. A car insurance really fits that category.
  • Why you should have uninsured motorists' coverage for property

    Although this coverage is not seen as often as personal injury coverage, it still serves a valuable purpose. [19659029] As vehicles get older, customers tend to remove collision coverage, which pays to fix your vehicle as a result of an accident. If an accident occurs where your vehicle is hit by a vehicle without car insurance and you do not have a collision insurance, you can use UMPD to get your vehicle fixed. So you are not completely out of this situation.

    The Morality of History? Only YOU have control over YOUR insurance. So choose the coverage that protects you (and all passengers) should you be involved in a car accident where the faulty vehicle has no or little insurance. Uninsured motorists coverage does just that – paying medical bills so you can get back on your feet and move on with your life. There is more useful information where this comes from. Call us at (937) 592-4871 to discuss your insurance or submit your quote request today . W would like to help you get an insurance that protects YOU!


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