Vol. 7, No. 4

March, 2000

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by Timothy A. Shollenberger, Esq.


Uninsured Motorist Coverage- What Is It And Should I Have It?

While stopped for a light, John's car is struck from behind. John suffers serious injuries which keep him from working. His medical bills are piling up. He wonders why he has not heard from the other driver's insurance company. He soon learns the answer- the other driver has no car insurance.

Unfortunately, this kind of 'coverage tragedy' occurs far too often. Uninsured motorist coverage protects you, your family members who live with you and those who occupy your car if the vehicle causing the harm is uninsured by its owner.

Uninsured motorist coverage is optional, you can buy it or can choose not to. It is relatively inexpensive, especially in comparison to the cost of collision coverage. Uninsured motorist coverage can be purchased in different amounts. It is there to protect you from the irresponsible owner of the uninsured vehicle and basically replaces the bodily injury liability coverage the owner should have purchased. And uninsured motorist coverage pays for the damage done to the person, not the vehicle. (Collision and comprehensive cover the car.).

In our example above, John could still sue the person causing the harm. We've all heard the old saying, 'You can't get gold from a turnip.' In reality, if the other driver does not carry insurance, it is highly unlikely that he will have any assets worth going after. And even if he did, there are so many exceptions to the rules about attaching assets to pay a debt that even people with assets can't be effectively sued.

That's why is it essential that you purchase as much uninsured motorist coverage as you can afford. What does uninsured motorist coverage pay for? Basically, the following:

1. Uncovered medical bills.
2. Unreimbursed lost wages.
3. Pain and suffering.
4. Effects of the injury on the quality of life (sometimes called loss of life's pleasures).
5. Loss of future earnings.
6. Loss of future earning capacity.

If you are unclear as to whether and how much you uninsured motorist coverage you have, call us and we will be happy to review your policy with you. Rejecting this coverage is almost always a bad idea. Protect yourself against becoming another 'coverage tragedy'. Buy as much uninsured motorist coverage as you can reasonably afford.

In our next article, we will talk about underinsured motorist coverage, another essential element of a good insurance policy.

Statistics compiled by the Pennsylvania Department of Insurance show that the average cost of $25,000 worth of uninsured motorist coverage is per year in 1999.