You have purchased an auto insurance policy for your vehicles in Pismo Beach, CA, with hefty limits for collision coverage, so why should you spend extra on uninsured or underinsured motorist coverage? California law allows you to opt out of this coverage if you sign a waiver. However, Neff & Associates Insurance Services Inc. advises against doing so. Here’s why.
Pays for Damage When You Are Not at Fault
Many motorists on a tight budget skip this part of their auto insurance policy if they want to keep their monthly premium as low as possible. Some drivers operate their vehicles illegally without any insurance. Worse yet, you may end up in a hit-and-run accident where you have to foot the bill. Underinsured and uninsured motorist coverage will pay for repairing your vehicle minus any applicable deductible.
When you are involved in an accident and law enforcement deems that the fault rests with the other driver, that individual’s insurance will typically pay for damages. However, if the motorist doesn’t have enough coverage to pay for damages, you will have to pay for the excess out-of-pocket with the uninsured/underinsured provision in your personal auto policy.
Types of Uninsured/Underinsured Coverage Available
Depending on your policy, you can elect to include several types of provisions if you become involved in an incident with motorists who are not adequately insured. Your policy’s personal injury protection (PIP) may not be enough to cover medical bills for you and your passengers. Uninsured motorist property damage can augment your coverage and limit out-of-pocket expenses.
How much uninsured/underinsured motorist coverage do you need? Generally, the more valuable your vehicle, the more you may need. Let Neff & Associates Insurance Services Inc., serving Pismo Beach, CA, help you determine an appropriate amount. Contact our office today for an appointment.