Car accidents are not only frightening and dangerous, but also expensive. Besides property damage, medical bills, and legal fees, you could also face financial burdens if the other driver is uninsured or underinsured. This is where uninsured motorist coverage (UMC) comes into play. In this blog post, we will discuss everything you need to know about UMC in Canada.
What Is UMC?
UMC is an insurance policy type that offers protection in case you have an accident with a driver who lacks insurance or has insufficient insurance to cover the losses resulting from the accident. UMC also covers hit-and-run accidents where the other driver flees the scene.
UMC coverage is a type of optional add-on that you can include in your current car insurance policy. It is not mandatory in all provinces in Canada, but it is strongly recommended.
What Does UMC Cover?
UMC covers the following:
- Bodily injury: UMC offers protection for bodily injuries incurred in a collision with an uninsured or underinsured driver. This comprises medical bills, lost income, and physical and emotional distress.
- Property damage: UMC also includes coverage for property damage resulting from an accident with an uninsured or underinsured driver. This includes damage to your car, as well as any other property that may have been damaged in the accident.
- Hit-and-run accidents: In case of a hit-and-run accident, UMC offers coverage for both personal injury and property damage.
What Are the Benefits of UMC?
- Peace of mind: With UMC, you can have peace of mind, knowing that you are safeguarded in case of a collision with a driver who lacks or has insufficient insurance coverage.
- No out-of-pocket expenses: In case of an accident with an uninsured or underinsured driver, UMC will cover your expenses, saving you from paying out of pocket.
- Lower risk: With UMC, you are at a lower risk of financial loss in case of an accident with an uninsured or underinsured motorist.
- Cost-effective: Adding UMC to your existing auto insurance policy is cost-effective compared to the potential expenses you could face if involved in an accident with an uninsured or underinsured motorist.
What Are the Limitations of UMC?
- Coverage limits: UMC coverage limits vary depending on the insurance provider and the province you live in. It's essential to consult your insurance provider to comprehend the coverage limitations of your UMC policy.
- Deductibles: Like other insurance policies, UMC also has deductibles. Before your UMC coverage takes effect, you'll need to pay the deductible.
Do I Need Uninsured Motorists Coverage?
Being involved in an accident with an uninsured driver could lead to substantial expenses, including medical bills, lost wages, and vehicle repairs. Without uninsured motorist coverage, you would be responsible for paying these costs out of your own pocket. Such costs could be substantial, particularly if the accident caused significant harm or damage.
Furthermore, even if the other driver has insurance, their policy may not have enough coverage to cover all the expenses resulting from the accident. This is where uninsured motorists coverage comes in handy. It covers expenses that the other driver's insurance policy does not include, preventing you from bearing a financial burden.
Moreover, hit-and-run accidents are on the rise on Canadian roads. In such cases, the other driver flees the scene, leaving you with no way to claim damages from them. Uninsured motorists coverage also provides coverage for hit-and-run accidents, ensuring that you are still protected even if the other driver is not caught.
Conclusion
In case of an uninsured motorist accident, it's crucial to seek the assistance of RotondoLaw.com in Toronto. UMC provides an additional layer of protection, but you may still need legal representation to recover any damages. Although not mandatory in all Canadian provinces, UMC is highly recommended. Adding UMC to your current auto insurance policy is a cost-effective way to ensure you are covered in the event of an unforeseen circumstance. Remember to review and understand all coverage options available to you and to review your coverage regularly to ensure it meets your current needs and budget. Stay safe on the roads.
