FAQ: What Is Uninsured Motorist Coverage and Who Needs It?
Article by Gregg Marcus
The Insurance Research Council estimates that one of every 20 motorists on the road in New York is uninsured. The declining state of the economy has led many drivers to stop paying for their car insurance. In this article, Gregg S. Marcus, a Long Island Insurance Executive answers this common question about Uninsured Motorist (UM) coverage.
This coverage protects motorists and also their passengers from other drivers who drive illegally without insurance. New York state law requires all motor vehicle insurance policies include uninsured motorist coverage. Every motor vehicle registered in the state must carry personal injury liability insurance with coverage amounts of at least:
1. For one person injured in an accident: ,000 in coverage2. For all of the persons injured in an accident: ,000 in coverage3. For property damage in an accident: ,000 in coverage
If a driver fails to keep this amount of coverage, they will be underinsured.
The law is on your side if an uninsured or underinsured driver is at fault in an accident. In many instances, you are legally entitled to recover damages when you can prove:
• That the uninsured motorist was at fault in causing your damages or injuries, and• That damages can be measured and a certain amount of money will fully pay for your damages.
The weak economy always affects the number of uninsured motorists. A one-percentage point increase in unemployment translates into an increase of three-quarters of a percentage point in the rate of uninsured motorists, according to the Insurance Research Council. So during an economic downturn, like the one we’re currently experiencing, the number of uninsured motorists is higher than normal. It is never a good idea to let your insurance policy lapse. Driving without insurance is illegal in New York and the driver will face criminal charges if they are caught. Uninsured motorists also face financial risks; if they are in an accident, they could lose any assets that are owned in a court judgment against them. Also, motorists who default on their policies for any reason often must pay an initial 25% to 50% surcharge to begin a new policy. Insurance companies consider them irresponsible, so they charge them more.
If you are facing financial trouble and are having problems paying your bill, contact Gregg S. Marcus today for a quote. He may be able to get you a lower rate on your Homeowner’s Insurance, Automobile insurance or Renter’s Insurance!