Reader’s Question:

What is underinsured and uninsured covers? How much coverage do I need for those?

Denver

Los Angeles CA

It depends on several factors when determining the amount of car insurance an individual needs. It is important that your consider risk that you and the passengers and your vehicle will likely to encounter. Most insurance agent will probably tell you to purchase as much as you can afford- which I believe is true.

If the other party that get involved in an accident is underinsured, Uninsured/Underinsured will be very helpful since it covers what the other party’s auto insurance covers and what your BI coverage will pay. If you do not have health insurance, you can benefit from Motorist Bodily Injury because if the limits that was chosen is insufficient then you will be liable for the payment of the additional cost or amount.

To cover all vehicle repair/replacement costs Underinsured Motorist Property Damage alone is not enough, and this Underinsured Motorist Property Damage will only be applied if you are involved in an accident caused by a motorist without enough liability insurance coverage.

Tags: auto insurance