Three Little Known Types of Car Insurance That Can Save You Thousands

Most drivers believe that if they have fullAnother common situation is being injured in an
coverage insurance, they are really fully covered.accident with another driver who has only the
With full coverage, you only have coverage forminimum coverage required by your state.
liability and property. These do little to protect youAlthough the other driver is insured, his policy
from others. What follows are descriptions oflimits are not sufficient to cover your medical
three types of car insurance coverage that fewexpenses and lost wages. That's where UIM
drivers know about, but they all need.coverage comes in.
Uninsured Motorist Coverage (UM)UIM insurance provides coverage in those cases
Ok, you don't really have to add uninsuredwhere the other driver�s insurance does not
motorist coverage - you already have it.compensate you enough for your expenses. So
In Missouri, for example, every insuranceyour insurance company pays the rest.
company has to give you (for a price) a minimumBut here's the trick - if you really want to make
ofsure this coverage is not worthless, you have to
$25,000 coverage. The problem is $25,000 is notbuy a lot of coverage - at least $100,000. Like
enough!additional UM coverage, UIM coverage will only add
This type of coverage kicks in when you area few dollars to your insurance bill.
injured in an accident caused by an uninsuredMedical Payments Coverage (MPC)
driver. A common scenario is that an insuredThe above discussed types of coverage, UM and
driver suffers devastating injuries because anUIM, are only relevant in instances when the other
uninsured driver hit him. As a result, the insureddriver is at fault. With MPC, who caused the
driver may run up substantial medical bills and missaccident is irrelevant. This type of coverage is
substantial time from work. To collect in thisreimbursement for medical bills resulting from
situation, you would go to your insuranceinjuries sustained while in your car. Obtain at least
company, which takes the place of the guilty$5,000 in MPC. It's low cost, and it allows you to
driver. The good thing about this scenario is that�double dip� when another driver is at fault.
your insurance company will not increase yourIn other words, when someone else hits you, you
policy rates.can collect from their insurance company for your
UM coverage provides strong coverage for youmedical bills, but you are also entitled to be
and your family. But you haveto raise the policyreimbursed under your MPC from your insurance
limits of the coverage. Tell your agent you wantcompany for those same medical bills!
at least $100,000 in UM coverage. It will only addTake advantage of UM, UIM and MPC insurance
a few dollars to your premium.coverage to make sure you are well-covered in
Underinsured Motorist Coverage (UIM)the event of a car accident.