Should You Opt Out From Uninsured Motorist Coverage


Uninsured motorist coverage is only required in the 20 states of the U.S. while the remaining 28 states, consumers can refuse of having this coverage on their policies.

If you have been reading articles from this site, you already know that there are two states in the U.S. that do not require drivers to carry auto insurance – that is Virginia and New Hampshire. Although in Virginia, vehicle owners are required to pay $500 fee each year starting from the day they registered their vehicles and soon thereafter.

Did you know that there are about 14% uninsured drivers nationwide? This would mean that there is a 1 to 7 chances that when someone hits your car, the driver does not have any insurance coverage at all. And if he did have one, it will not be enough to pay all the incurred damages.

These days, everyone wants to save money by cutting the corners. From those states where uninsured/underinsured motorist coverage are not required, many drivers will opt out not to carry any insurance coverage in high hopes that no one will bump on them or them causing the accident. But we know that this is far from the truth and no matter how good the driver is, chances are in the future, someone will run into them. Responsible drivers and law-abiding citizens do exist, but there is no point of trusting your safety over sheer luck.

By having no insurance at all is a big mistake and often costly. You will end up of bearing all the losses and expenses on your own or if the driver at-fault is the other party, you could go to court and file a civil case to recover your losses. But what if you are the at-fault driver?

Filing court cases require you to hire an attorney that will sue the other party responsible for the accident, but there is a catch. What if the other party you are suing has no assets, and if ever you do win, there is nothing to collect in the end.

Hit-and-run accidents are blatantly gruesome and there is no one to hold responsible. You are left with no one to turn to, and you end up using your own money to pay the losses. And since the medical system in the U.S. is a profit-driven industry, even minor injuries would mean substantial expenses – and there is nothing you can do about it.

Having witnessed countless of individuals succumbed into these pointless hitches; many U.S. States are now beginning to impose strict regulations and serious penalties for at-fault drivers who do not have any insurance coverage. For instance in Idaho, a driver could lose his license for a maximum of 6 years or until he made some payments to the aggravated parties. Also in California, the vehicle can be impounded and towed away and applying all the expenses such as storage fees under the driver’s name. 

Although uninsured motorist coverage is an additional cost on top of your existing policy, but by having this coverage can put your mind at ease knowing that if you become a victim of an uninsured and reckless driver, you can be reimbursed.