Santonocito and Associates

(425) 830-6612

Insurance Read Time: 2 min

Protection Against Uninsured Drivers

About 12.6 percent of all motorists, or one-in-eight drivers, do not have automobile insurance, according to the Insurance Research Council.¹

Having the misfortune to get into an accident with an uninsured motorist may have serious financial consequences, depending upon the state in which you reside and whether it is a “no-fault” or “tort” state.

In no-fault states, the law does not assign blame for an accident. As a result, each driver is reimbursed by his or her insurance company for any damages. In a “tort” state, insurance companies pay out claims based upon the percentage of fault assigned to each driver.²

Any accident with an uninsured driver means no insurance reimbursement payment for his or her apportioned share of the damage. This can leave you holding the financial bag.

How to Protect Against Uninsured Drivers

Some states require drivers to take out insurance for uninsured (and underinsured) motorists. Where not required, it may be a good idea to add that coverage to your auto policy.

You can buy protection against uninsured (and underinsured) drivers for both bodily injury and property damage. This coverage may also be valuable in cases where an insured motorist flees the scene of an accident without trading insurance information.

The first step to protect yourself against this potential financial risk is to contact your insurance agent to discuss your current coverage, applicable state insurance laws, and what you need to do to obtain protection against uninsured motorists.

1. Insurance-Research.org, March 22, 2021
2. The information in this material is not intended as legal advice. Please consult legal or insurance professionals for specific information regarding your individual situation.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Share |
 

Related Content

What is the Value of Your Business?

What is the Value of Your Business?

Ascertaining the value of your business is important for a variety of reasons.

Financial Hacks for Millennials: Don’t Get Burnt With FIRE

Financial Hacks for Millennials: Don’t Get Burnt With FIRE

In recent years, a new personal finance concept has caught FIRE: Financial Independence, Retire Early.

The Pre-Retirement Checklist

The Pre-Retirement Checklist

This checklist can give you a quick snapshot of how prepared you are.

 

Have A Question About This Topic?







Thank you! Oops!

Retirement Income and the Traditional Portfolio

Experiencing negative returns early in retirement can potentially undermine the sustainability of your assets.

Does Your Portfolio Fit Your Retirement Lifestyle?

Lifestyle considerations in creating your retirement portfolio.

Why Everyone Needs an Estate Strategy

Do you have an estate strategy? You should.

View all articles

What Is My Risk Tolerance?

This questionnaire will help determine your tolerance for investment risk.

Interested in a Fuel Efficient Car?

Estimate how many months it may take to recover the out-of-pocket costs when buying a more efficient vehicle.

Long-Term-Care Needs

Determine your potential long-term care needs and how long your current assets might last.

View all calculators

Managing Your Lifestyle

Using smart management to get more of what you want and free up assets to invest.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.

View all presentations

Working With A Financial Professional

A financial professional is an invaluable resource to help you untangle the complexities of whatever life throws at you.

Dog Bites and Homeowners Insurance

Reviewing coverage options is just one thing responsible pet parents can do to help look out for their dogs.

When Markets React

When markets shift, experienced investors stick to their strategy.

View all videos