Uninsured motorist coverage ensures that properly insured drivers do not absorb losses at the hands of uninsured motorists.
Most states require automobile owners carry uninsured motorist coverage as part of their automobile liability insurance. Such coverage protects an automobile owner in the event he collides with an uninsured vehicle.
Purpose
The purpose of having uninsured motorist coverage is to provide a person, who has been in an accident with an uninsured driver, compensation even though the other driver has been negligent in obtaining proper insurance. The affected individual can look to his own automobile policy to compensate him for bodily injury and/or property damage.
Statute of Limitations
Since the affected driver looks to collect benefits under his own policy, the typical statute of limitations for an auto accident does not apply. Rather, the applicable statute of limitation will be based on a written contract. Written contract statute of limitations vary from state-to-state.
Effect
The effect of applying a written contract statute of limitation is to lengthen the amount of time in which an affected person may file a claim for his losses. In general, auto accident statute of limitations are shorter than those for written contracts.
Tags: motorist coverage, auto accident, contract statute, statute limitation, uninsured motorist
