Why is uninsured motorist's coverage required by states that require auto liability insurance?
Question:
Answer:
States recognize that idiots driving w/o insurance seldom ever pay for the damage. As such, states require insurance companies have you sign a waiver if you DECLINE the coverage. This is to protect the insurance company from you coming back saying, "It wasn't offered to me." UM coverage allows your insurance company to pay for the damages you legally would have been able to recover from the uninsured driver. But, if you are at fault for an accident and the other party doesn't have insurance...too bad, UM coverage won't apply since you aren't able to legally recover damages from them.
The high rate of non-compliance. The laws are not enforced.
Just because the law requires it doesn't necessarily mean a person that hits you will have liability. Unfortunately, many drive without insurance. If that happens you'll still be covered.
The first answer is incorrect. If you are pulled over without proof of insurance, you get a hefty fine. Just people get away with a crime doesn't mean it is not enforced.
Because even if insurance is required not everyone follows the rules, Not everyone has insurance even if it is required. Therefore we have to be responsible for the people who are not responsible. Although in the state of West Virginia, If you are in an accident or pulled over and do not have Insurance you automatically loose your drivers license for thirty days. This is a fair practice for those who feel that others should be responsible for them.
because there is still so may people that don't have insurance,that you wouldn't believe the numbers if you saw them,in Tennessee alone they say still 30% of the people don't have it,this is why its included in the policy,,that's the main reason though,,good luck with this ,i hope this help,s.
By personal experience, some of the people who run into you out there ARE NOT INSURED as the law requires, so you need to cya when they don't cover their own. Also, it's a yet another great way for the insurance companies to get more of your money. God Bless you.
Not all states require it. In Texas for example:
In Texas the uninsured motorist / under insured motorist (UM/UIM) that is required to be offered to you by auto insurers can be for bodily injury and property damage. While it must be offered, you are not required to purchase these coverages. If you do reject it, it must be in writing.
It's similar in other states, they are required to OFFER it, and it's a good idea to have it, but you can reject it. If you do, pray you are never hit by an uninsured driver.
There are a ton of people who don't carry insurance as required, that's why.
Because there are always going to be those who chose to break the law.
the state does not require it - your loan on the car requires it just like the bank holding hte loan is required to be listed as a benficiary on your policy so that if it gets totaled they get paid off ...
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