When you sign up for insurance, there’s always a lot of paperwork to fill out. But David Greene from the law firm of Greene and Phillips tells Cherish Lombard you should never sign an Uninsured Motorist Coverage Waiver. He says it not signing the waiver may save you a little money on your insurance bill, but signing it could cost you tens of thousands of dollars if you’re hit by someone who doesn’t have insurance, or someone who doesn’t have enough insurance.
Uninsured motorist coverage and is not the same as liability insurance. If you cause an accident, liability insurance pays the other driver’s vehicle damage and medical bills, and you’re required by law to have it. If you have liability insurance but not uninsured motorist coverage and you’re hit by someone who doesn’t have insurance, you’ll be out of pocket for your vehicle damage, your medical costs and any other costs from the accident. Uninsured motorist coverage covers you in case someone hits you without insurance, or with insufficient insurance. A recent study showed that one in four vehicles is not insured.
There’s also a different between uninsured and underinsured coverage. If you’re in a car accident, the other driver is at fault and that driver doesn’t have car insurance, uninsured motorist coverage will help protect you. It can cover injury-related medical expenses and costs associated with repairing damage to your car. So if the other driver only has $25,000 in coverage and they cause more than $25,000 worth of damage , then your underinsured motorist coverage would make up the difference, up to your total coverage amount. David Greene recommends carrying as much uninsured motorist coverage as you do liability insurance.
If you have questions about your car insurance coverage, you can call Greene & Phillips. Someone there will be happy to help you find out if you have the right amount of insurance.
Greene and Phillips
50 North Florida Street
Mobile, AL 36607