Even if coverage for uninsured drivers isn't mandatory in your state and can be refused, it's great to have protection that safeguards you in the event of an accident with an uninsured driver. Uninsured motorist coverage (UM) is an extension of your car insurance policy that pays for medical expenses and repair costs when an uninsured driver causes a car accident. This type of coverage is not required in all states, but it can be a great way to provide peace of mind. It consists of the coverage for the uninsured mentioned above, but it also includes protection for underinsured motorists.
If you don't maintain liability insurance for your car at all times, it can result in the suspension of your vehicle's license plate and driver's license, as well as other significant monetary penalties. So, if an uninsured driver gets into a car accident with you and the collision injures you in any way, you may not have any insurance and may not be able to afford your coverage for medical expenses. If you don't have your own policy and you're not covered by a family member's policy in your household and if you're injured as a pedestrian by an uninsured vehicle or by a driver who hits the road or by being an occupant of an uninsured vehicle in New York State, you may still be eligible for uninsured motorist protection and no-fault coverage. It's important to keep in mind the importance of maintaining the required motor vehicle insurance coverage on an ongoing basis while you own a car.
In addition, many credit card companies also offer some type of collision damage coverage to their cardholders for vehicles that rent with that card. As you might expect from the name, this type of car insurance is designed to take effect when the driver at fault for the accident is uninsured or underinsured. There is also related coverage, called underinsured motorist coverage, that protects you from other drivers who have insurance but not enough to pay for your injuries or car repairs. Uninsured motorist insurance is designed for more serious situations where the driver at fault for the accident doesn't have any type of liability insurance coverage for cars.
Full coverage plans sometimes include coverage for uninsured drivers and for underinsured motorists, although this isn't always the case. Generally, your UM limits cannot be higher than those of your liability coverage, but if you have two cars and build up your limits, your coverage actually doubles. The cost of coverage for uninsured drivers generally fluctuates depending on the percentage of uninsured drivers in a state. No-Fault is personal injury coverage and does not cover the repair of your car body or damage to the motor vehicle or other personal property of others.