One in eight drivers does not have auto insurance, according to a 2019 report. This is despite laws in every state except New Hampshire that requires motorists to purchase liability insurance.
What can motorists do to protect themselves against uninsured drivers?
Collision insurance
Uninsured motorists increased insurance costs for insured drivers by more than $13 billion in 2016. While it may seem unfair to pay more for insurance to protect yourself against those who do not meet their legal obligations, it may be preferable to having to pay out of pocket for damages caused by uninsured drivers.
Collision coverage pays for damage to your vehicle, less your deductible, regardless of who is at fault in an accident. Purchasing this coverage increases your premium, but eliminates the need to rely on the at-fault party’s insurance to cover your property damage.
Uninsured motorist insurance
Pennsylvania drivers are not required to purchase uninsured motorist coverage. However, insurance companies must offer the coverage and drivers must sign a waiver if they do not want to purchase it.
When an uninsured or hit-and-run driver causes an accident, uninsured motorist coverage pays for medical bills and other expenses that result due to injuries. This coverage applies to the insured driver and any passengers in the insured vehicle. It also may apply if an uninsured or hit-and-run driver hits you as a pedestrian.
An uninsured driver is still legally responsible for injuries and property damage they cause. However, many of these drivers do not have the financial resources to pay settlements. Uninsured motorist coverage protects against financial loss caused by these drivers.
