Will Uninsured Motorist Car Insurance Pay For Auto Accident?
Reader’s Question:
If I get involved in an accident here in Minnesota where the other driver has no car insurance, will my insurance company pay the damages? What if the costs incurred exceed the limits on my coverage?
Jill
Minneapolis, MN
Minnesota observes the no-fault act. This means that following an accident, individuals involved will have to file claims against their own insurance companies initially for benefits. This law has been adopted to minimize long court battles to determine who is at fault and who needs to shoulder the liability after the accident. Having the no-fault act also means that all motorists are required to obtain the no-fault insurance policy. This type of coverage actually means having Personal Injury Protection (PIP) where an amount up to $20,000 pays for bodily injuries and another $20,000 for funeral expenses and lost wages. Having this type of insurance coverage hinders the ability of a driver to sue the other. However, if medical costs exceeded the limit, the other driver reserves the right to sue the at-fault driver to pay any remaining amount that the PIP cannot cover.
Motorists who have extensive health insurance elect to have the minimum PIP policy. Make sure to read the declarations page on your car insurance policy. If excess medical expenses are stated then you will have to look to your health insurer first. Any amount remaining will be shouldered by your car insurance company. In your case, if you get hit by an uninsured driver, your PIP insurance will definitely assist you financially. But if costs exceed those stated in your coverage limits, then you can sue the other driver for the remaining amount.
How Do I Protect Myself Against Uninsured Drivers?
Reader’s Question:
I have recently moved to Nevada for a one-year work assignment. What do I need to know about car insurance laws in this state in regards to uninsured motorist?
Bobbie
Carson City, NV
Nevada’s only requirement to its motorists is to have a minimum liability insurance coverage. Minimum coverage means the car insurance company will shoulder the medical expense and repair cost incurred following an accident that you caused.
Medical payments insurance covers 15 thousand dollars for a single driver’s treatment of bodily injury, or up to a total of 30 thousand dollars for all the passengers in the car involved in the unfortunate accident. A maximum 10 thousand dollars is assigned to cover repairs and/or replacement of the other motorist’s car.
But despite laws obligating Americans to have auto insurance, people still drive around without or with not enough coverage. This is why purchasing the Uninsured/Underinsured Driver’s Insurance is always a smart move. This type of insurance protects you and your family members from those kinds of drivers.
Uninsured/Underinsured coverage in your policy pays for medical expense incurred for treatment of bodily injury resulting from an accident where a driver with not enough liability coverage or having no auto insurance of any kind is at fault. This coverage also pays for medical treatment if you were injured by a hit-and-run driver. Remember, though, that for this type of auto insurance to kick in, the other motorist has to be declared at fault.
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