Why You Need Uninsured/Underinsured Motorist Coverage

Hope you`re covered if you get into a fender-bender and discover that the at-fault driver is uninsured. In that unpleasant situation, your auto insurance will kick into gear if you have uninsured/underinsured motorist protection, and among those who would steer you in the direction of those sentiments are auto insurance industry representatives such as Nicole Mahrt, Dave Snyder, Dan Kummer and Sharon Cooper.

Think of uninsured/underinsured motorist coverage as an important self-help tool that generally is pretty affordable. It`s important for people to protect themselves in case they get into an accident with someone who either has no auto insurance or doesn`t have enough coverage, says Mahrt, western regional public affairs director for the American Insurance Association. "You probably can`t afford to drive without it."

"Everyone does need it if you live in a state that mandates that coverage, and about a dozen states do," says Mahrt`s colleague, Dave Snyder, vice president and assistant general counsel for the American Insurance Association in Washington, D.C. "Your auto insurance provider should be able to tell you whether that coverage is mandated or is optional. Beyond that, if you buy it, you need to determine how much coverage you need. How much you need depends on whether you have health insurance and whether you want to be compensated for ‘pain and suffering,` which you get with UM/UIM."

"You can protect yourself from being hurt financially by buying uninsured/underinsured motorist protection," points out Kummer, director of auto insurance for the Property Casualty Insurers Association of America in Des Plaines, Ill. "Without uninsured/underinsured motorist coverage, you have little likelihood of gaining payment for damages you or your vehicle sustain if you`re involved in an accident with a driver who is either underinsured or driving without any coverage," says Kummer.

Selective Insurance Senior Vice President Sharon Cooper characterizes uninsured/underinsured motorist protection as "an important coverage for consumers because it protects them in situations they can`t plan for. Without the coverage, their only recourse may be to sue an individual to cover their losses if (that other driver) doesn`t have insurance or enough insurance."

Uninsured coverage also covers you if a hit-and-run motorist hits your vehicle. "With this coverage," Kummer continues, "you and your passengers receive compensation for medical expenses, lost wages and other injury-related losses. You can sue that person, but if that driver has nothing, you`ll get nothing even with a favorable judgment."

Underinsured motorist protection pays you for damages that surpass the amount of coverage carried by a driver who is underinsured. "That's valuable, because many drivers carry minimum limits, and that may be insufficient to cover your injuries and lost wages," notes Kummer.

The Insurance Information Institute's Carolyn Gorman extolled the virtues of such catastrophic coverage. "You absolutely need this coverage, because, if you get into an accident with someone who is driving without insurance or doesn`t have enough of it, you want to be made financially whole again. You have to protect yourself fiscally and physically, and uninsured/underinsured motorist protection can help you in that regard."

Uninsured motorist protection can help you in another way. "Let`s say you`re a pedestrian. If you carry this coverage and you get hit by a car while you`re trying to cross the street, the coverage could pay your medical expenses and lost wages," says Gorman, vice president for III, based in New York.

Insuring Your Home-Based Business Car

To buy commercial or personal car insurance coverage for your car: That is the question…asked by most home-based business owners when considering what kind of car insurance to purchase for their car. As luck would have it, most business owners have enough coverage under their personal auto insurance policy to protect their investment; however, that is not always the case for all home-based business owners!

“As long as you’re not driving other people around a lot of the time, you're probably fine with a personal auto insurance policy,” says Ed Charlesbois of The Travelers. “For instance, if you operate a delivery service out of your home, you're going to need a commercial car insurance policy that will cover your business assets in the event you're involved in a car accident. However, if you're a real estate broker and you drive clients around from time to time, you can get away with having just a personal auto insurance policy.”

Auto Insurance Costs For Your Home-Based Business
Home-based business owners need to pay attention to liability limits in order to protect their personal and business assets as well. That’s why your liability limits and deductibles are major factors in how much you’re going to pay for auto insurance. The higher your car insurance limits and the lower your deductible, the higher your car insurance premium rates will be. When determining your car insurance premium, auto insurance companies typically look at the number of miles you drive, who drives your vehicle, your driving record and your claims history.

“To help minimize their financial risk, home-based business owners should consider heightening their liability limits,” noted an official from Insurance.com. “In the event of an accident, the injured party may come after you as an individual and as a business, so by having higher liability, you are saving yourself from potential headaches in the future.” Whether or not you choose commercial or personal auto insurance, your protection is the same, but the cost of commercial may be slightly higher than that of personal.

Insure What You Haul
If your business requires you to shuttle equipment from job-to-job, and you have a home-owners or renters policy, your business equipment will have minimal coverage. However, depending on the value of your equipment, your home-owners or renters policy may not be enough and you may need to take out a rider to cover your equipment.

Business Owners Policy
Business Owners Policies cover property damage and your liability risks on and off the business premises. On the average, Business Owners Policies will cover up to $10,000 to replace lost, stolen or damaged equipment, so long as it isn’t a permanently attached piece of equipment.

If you are a home-based business owner and would like to make sure you are getting the most out of your car insurance, log on to Insurance.com’s auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers – helping you find the best and cheapest auto insurance coverage for your home-based business.

Car Insurance Costs May Vary for Select SUVs

Insurance premiums depend on several factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This explains why one driver might pay a different premium than another for the same make of motor vehicle.

But why might it cost you more to insure one sport utility vehicle (SUV) than another?

In addition to the factors listed above, insurance companies also:

• Consider the likelihood that a particular brand of vehicle will be stolen, vandalized, or involved in an accident
• Track the costliness of repairs
• Obtain their information by consulting various claim statistics

The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.

In addition to these industry wide statistics, insurance companies consider their own experience with claim payouts. For instance, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance rates for that type of SUV than another company would. For that reason, it's wise to obtain quotes from several insurance companies before insuring your SUV.

Note: In some cases, the state, not the insurer, decides how each vehicle is rated.