Are you currently shopping around for car insurance? If so, you may be debating about if you need underinsured and uninsured motorist coverage. Here are some common questions you are likely to have before you purchase a policy.

Why Do You Need Uninsured Motorist Coverage?

The main reason for having uninsured motorist coverage is to protect you from another driver that does not have insurance. While you may think that you can always sue the other driver for damages and recover them in court, that is not always the case.

If someone does not have insurance coverage and they cause an accident with you, know that it will be a struggle to get the compensation you deserve. Even if you take them to court and win, it is not a guarantee that you will receive compensation. It is entirely possible for someone to be judgment proof, meaning they do not have any income that can be garnished or assets that can be sold to pay for a court judgment. Your uninsured motorist coverage picks up the cost related to the accident if you find yourself in this situation. 

Does Uninsured Motorist Coverage Cover Hit And Run Accidents?

While an accident with an uninsured driver is the most obvious situation to use uninsured motorist coverage, it can also be used to cover hit and run accidents in most states. This is when you are hit by another driver and they drive away without exchanging information, even if they have auto insurance. For the states that do not allow uninsured motorist coverage to be used, then you will need to use collision coverage to pay for the damages.

However, you may be wondering what happens when someone hits your parked car and drives away without leaving a note? This situation would actually use collision coverage, because you were not driving the vehicle at the time. 

When Can You Use Underinsured Motorist Coverage? 

It is possible that you get into an accident with another driver who is at fault, and they have small limits on their auto insurance policy. Much like with the uninsured motorist coverage, underinsured motorist cover prevents the need to sue the other driver and take them to court for any damages beyond their policy limits. It can give you peace of mind that your accident bills will be covered, even if the other driver is underinsured and judgment proof.  

For more information, contact a local auto insurance agency.