(925) 449-5674

Insurance Read Time: 2 min

Protection Against Uninsured Drivers

About 12.6 percent of all motorists, or one-in-eight drivers, do not have automobile insurance, according to the Insurance Research Council.¹

Having the misfortune to get into an accident with an uninsured motorist may have serious financial consequences, depending upon the state in which you reside and whether it is a “no-fault” or “tort” state.

In no-fault states, the law does not assign blame for an accident. As a result, each driver is reimbursed by his or her insurance company for any damages. In a “tort” state, insurance companies pay out claims based on the percentage of fault assigned to each driver.²

Any accident with an uninsured driver means no insurance reimbursement payment for his or her apportioned share of the damage. This can leave you holding the financial bag.

How to Protect Against Uninsured Drivers

Some states require drivers to take out insurance for uninsured (and underinsured) motorists. Where not required, it may be a good idea to add that coverage to your auto policy.

You can buy protection against uninsured (and underinsured) drivers for both bodily injury and property damage. This coverage may also be valuable in cases where an insured motorist flees the scene of an accident without trading insurance information.

The first step to protecting yourself against this potential financial risk is to contact your insurance agent to discuss your current coverage, applicable state insurance laws, and what you need to do to obtain protection against uninsured motorists.

1. Insurance-Research.org, March 22, 2021. Most recent data available as of June 2023.
2. The information in this material is not intended as legal advice. Please consult legal or insurance professionals for specific information regarding your individual situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

The Investment Risk No One’s Ever Heard Of

You face a risk for which the market does not compensate you, that can not be easily reduced through diversification.

Estate Management 101

A will may be only one of the documents you need—and one factor to consider—when it comes to managing your estate.

Bi-Weekly Payments

This calculator estimates the savings from paying a mortgage bi-weekly instead of monthly.

 

Have A Question About This Topic?







Thank you! Oops!

The Basics of Medicare

Learn all about Medicare basics in this informative and insightful article.

The History of Currency

Currency has been around for a long time. Here’s a quick history lesson.

When to Self-Insure

Choosing to bear the financial burden of an adverse event is called self-insuring. Do you know what that entails?

View all articles

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

Should I Buy or Lease an Auto?

This calculator compares the financial impact of leasing versus buying an automobile.

Saving for College

This calculator can help you estimate how much you should be saving for college.

View all calculators

Encore Careers: Push Your Boundaries

Ready for retirement? Find out why many are considering encore careers and push your boundaries into something more, here.

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

Bursting the Bubble

Tulips were the first, but they won’t be the last. What forms a “bubble” and what causes them to burst?

View all videos