Despite laws requiring auto insurance in practically every state, a lot of people are driving without any — or without enough — liability insurance.
The uninsured/underinsured motorist section of your policy protects you if you or family members who live with you are hurt by one of those drivers while you're in your car, walking or, in some policies, bicycling. Your guests also qualify if they are hurt while in your car.
This coverage also applies when you are struck and injured by a hit-and-run driver and, in some cases, by a driver insured by a company that becomes insolvent.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For this coverage to kick in, the other driver has to be declared at fault. In most states, when blame is in doubt or the amount payable is contested, you and your insurer have to submit your differences to arbitration.
This kind of insurance usually covers only costs arising from bodily injuries. In states in which property damages are included, claims may be reduced by a deductible.
Generally, companies are obligated to pay claims up to the minimum amount fixed by your state for liability insurance. But often you can purchase higher limits for an additional premium.
Most states require insurance companies to offer uninsured or underinsured coverage; some companies combine them. If your company offers them separately, buy both.
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Car Prices Are Finally Coming DownThe Kiplinger Letter For the first time in years, it may be possible to snag a good deal on a new car.
-
When's the Best Time to Buy a Domestic Flight? The Kiplinger LetterThe Kiplinger Letter A new study by CheapAir.com has crunched the numbers.
-
Woes Continue for Banking Sector: The Kiplinger LetterThe Kiplinger Letter Regional bank stocks were hammered recently after news of New York Community Bank’s big fourth-quarter loss.
-
Anxious Flyers Take Note: The Kiplinger LetterThe Kiplinger Letter Whether it's the routes to avoid that have the most turbulence or the safest airline, we've got you covered.
-
The Auto Industry Outlook for 2024The Kiplinger Letter Here's what to expect in the auto industry this year. If you’re in the market for a car it won’t be quite as daunting as it was during the pandemic and after.
-
Two More Travel Trends for 2024: The Kiplinger LetterThe Kiplinger Letter As the world gets moving again, two more travel trends to consider: Solo cruising and airline passengers with loaded guns.
-
Three Travel Trends Will Drive the Industry This Year: The Kiplinger LetterThe Kiplinger Letter New travel trends like set-jetting, destination “dupes” and tour traveling will propel the travel industry in 2024.
-
State Economics — Spotlight on New England: The Kiplinger LetterThe Kiplinger Letter After a better-than-expected 2023, New England states will see only modest employment growth in 2024.
