What to Do When Your Commercial Vehicle Is Hit by an Uninsured Driver

Starting a business takes a lot of time and resources. If you use commercial vehicles to help operate your business, you need commercial auto insurance . Unfortunately, accidents can happen at any time. You also have to be aware of uninsured drivers as well. Here’s how you should proceed if you are involved in an accident with an insured driver.

Commercial Auto Insurance in Houston, TX

While researching commercial auto insurance in Houston, TX, pay attention to local insurance laws. Many states have mandatory laws that require drivers to have at least the minimum amount of auto insurance. However, research shows that many people still drive without coverage. Many drivers cite that auto insurance is too expensive. This makes it difficult for insured drivers to collect damages if an accident happens. However, there are ways to protect your business if you are involved in an accident with an insured driver.

Uninsured Motorist Coverage

Uninsured motorist coverage is designed to cover you if you are involved in a collision with a driver who does not have insurance. The policy also covers hit and run accidents. In some states, uninsured motorist coverage is a mandatory policy. The policy covers any damage to your vehicle up to your coverage limits.

Underinsured Motorist Coverage

Carrying the minimum liability auto insurance may not be enough to cover all of your losses. You have to consider the possibility of people getting injured and serious property damage. Underinsured motorist coverage gives you an extra layer of protection if the other driver’s policy limits do not completely cover your losses. If you are involved in an accident with an underinsured driver, you’ll have to file a claim with the other driver’s insurer and also speak with your insurance provider. If you don’t receive enough reimbursement from the at-fault driver’s insurance company, your underinsured motorist coverage will cover the difference.

How Much Coverage Do I Need?

Underinsured and uninsured insurance coverage varies based on the situation. Some companies may recommend that you have the same amount of uninsured coverage and bodily injury coverage. You may be limited to coverage not higher than your liability limits. Uninsured coverage is available as a split policy or a combined policy. Split policies have different limits for bodily injury and property damage. A combined policy uses the same amount for both property damage and bodily injury.

How Much Does Each Policy Cost?

On average, uninsured and underinsured coverage costs around 5% of auto insurance premiums on a yearly basis. Several variables can impact the cost of your coverage, including your driving record, discounts, and any previous claims.

Uninsured motorist coverage can help protect your business if you are involved in a collision with a person who does not have insurance. If you have any questions about your policy, contact our experts at J. Archer Insurance Group today!

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