People often think of car insurance as a frustrating expense, not as a form of protection. After all, Arizona laws force people to carry coverage protecting them from liability if they are at fault for a car crash. Many motorists looking for insurance prioritize keeping their costs as low as possible. They may carry the bare minimum of coverage required under state law.
While basic bodily injury and property damage coverage is important, it is far from the only kind of insurance drivers can carry. Some people need to have collision and comprehensive coverage on their policies because they have a financed vehicle. Other people choose to add uninsured and even underinsured motorist coverage.
Why is insurance coverage based on the policies of other motorists so valuable?
Not everyone follows state statutes
Uninsured and underinsured motorist protection may be the only form of financial support available after some collisions. If a crash is the result of an uninsured driver running a red light or rear-ending someone due to distraction, the party not at fault is financially vulnerable.
Their only recourse might be to sue the other driver. Not every lawsuit after a car crash ends up in immediate compensation for the plaintiff. Those who can’t afford insurance often don’t have the income or assets necessary to cover crash costs for other people. It can take years for them to pay the costs generated by the crash they caused.
Uninsured motorist coverage applies in cases where the driver at fault for the crash cannot provide the necessary insurance coverage. Drivers can use their own policies to repair their vehicles and pay their medical bills.
Uninsured motorist coverage also pays for the damages caused in hit-and-run situations. When drivers flee the scene of a crash without filing a police report or exchanging insurance information with the other people involved, securing compensation can be difficult. Uninsured motorist protection is one type of insurance coverage that can pay for hit and run expenses.
Drivers preparing to switch to a new insurance company or to renew their policy may need to think about different car crash risks when determining what coverage to purchase and what policy limits to set. Considering sources of risk and all available insurance options can help people limit their losses if they ever end up in a wreck.