In order to save money, some people choose to carry only minimum liability coverage – just enough to drive legally. This choice often leaves them underinsured, and unable to pay for vehicle damage or medical expenses resulting from an accident caused by them. That’s why underinsured motorist coverage from Nationwide is so important for you.
The benefits of underinsured motorist insurance
If you’re involved in an accident caused by an underinsured motorist, your costs might not be covered by their policy. Underinsured motorist can protect you in two ways:
- Underinsured motorist bodily injury coverage may pay for you and your passengers’ lost wages, medical expenses and other expenses that exceed the limits of the underinsured driver’s policy in a covered incident.
- Underinsured motorist property damage coverage may pay for damage to your car or other property, such as a fence or mailbox, in a covered incident that exceeds the limits of the underinsured driver’s policy.
Underinsured motorist bodily injury coverage
Suppose you are hit by an underinsured driver carrying the minimum bodily injury liability insurance required in that state – say for example, $15,000 per person and $30,000 total per accident. If your medical expenses exceed $125,000 and your health insurance doesn’t cover such costs, you could be in serious financial risk. Underinsured motorist coverage would help pay some of those expenses in a covered incident.
Underinsured motorist property damage coverage
Say your car is damaged in an accident, and the bill for repairs cost $15,000. If the driver who caused the accident carries only a state minimum limit of $5,000 for property damage liability, you could possibly get stuck paying for a significant chunk of the repairs yourself. Underinsured motorist insurance would help pay for the property damage expense in a covered incident.
Underinsured motorist coverage can be sold as a package with uninsured motorist coverage, depending on the state where you live.
And where it is offered as a separate coverage, underinsured motorist coverage is sometime required and sometimes it isn’t. Regardless of how it is offered, find or talk with an agent today to see how you can add this vital protection and enjoy peace of mind.