Birthday’s can be a blast. Usually a little more magical and special the younger you are. It’s the one day of the year it’s all about you.
You get to choose what to do. Where to eat. And of course, what kind of cake (can’t forget about the cake)!
Cakes and birthdays go hand in hand.
Car insurance is a little like cake. In order for the cake to taste like cake, you have to follow the recipe. A car insurance policy is a recipe designed to take care of you.
READ MORE: 10 Ingredients That Impact Auto Insurance
Ok, maybe comparing insurance to cake is a stretch.
But think of each coverage as an ingredient. You probably won’t put ‘full coverage‘ on that old, rusty truck you use on the farm. Nor would you add oregano to your chocolate cake mix.
Missouri requires drivers to carry two coverages on your auto insurance: Liability and Uninsured Motorist. Those are the only two ingriedients required. The rest of the coverages are optional. Or a bank may require you to carry Comprehensive and Collision (if you have a loan on the auto).
On your special day, it’s all about you. Let’s take a look at three safeguards in a car insurance policy that protect you and your passengers.
Uninsured Motorist
Someone causes an accident and they have NO insurance. You and your passengers experience some bumps and bruises. Luckily nothing serious. But now each of you have a hospital bill you didn’t budget for.
Uninsured Motorist is one of those coverages Missouri requires you to carry.
The minimum requirement looks like this:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
Uninsured Motorist coverage is there to protect you by helping pay for those injuries (i.e. medical payments, lost wages, etc.) up to your policy limits.
In addition, Uninsured Motorist protects you if you fall victim to a hit-and-run.
It’s disturbing to think other drivers on the road may not have insurance. This is an instance where having proper coverage benefits you and your passengers.
It is estimated that 14 percent of Missouri drivers lack insurance.*
Underinsured Motorist
Let’s change the story a little.
That person runs a stop sign and smashes the side of your car. The guy that hit you has the bare minimum liability insurance required by Missouri ($25,000 per person / $50,000 per accident). Your medical bills come to $150,000. On top of that, you don’t have health insurance.
The guy that hit you doesn’t have anywhere near enough to pay for your injuries.
This is where Underinsured Motorist comes into play. Protecting you and anyone else in your vehicle from someone that doesn’t carry adequate limits of coverage.
Missouri does not require Underinsured Motorist. It is your choice.
Underinsured Motorist is going to pay for injuries and lost wages up to your policy limits for anyone in your vehicle beyond what the other party’s insurance will pay.
Medical Payments
In both of the stories above someone else was at-fault. Both Uninsured and Underinsured Motorist protect you and your passengers.
Change the story again. This time you are at-fault. Who pays for your ambulance ride? Your passenger’s broken arm?
Medical Payments is an optional coverage to help alleviate the cost of injuries. Even funeral expense. Regardless of who is at-fault.
Icing on the Cake
“Life is uncertain. Eat dessert first.” Ernestine Ulmer was wise beyond her years.
Treat yourself to knowing how your car insurance protects you before you need it. Otherwise it could be a recipe for disaster.
*Taken from page 5, Missouri Department of Insurance: Auto Insurance Guide
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