One of the criteria for operating any type of vehicle on the roadway is to have viable motorist insurance. Unfortunately, even though this is a requirement, there are a number of motorists that are uninsured or underinsured and still insist on driving. When these types of drivers decide to take to the roadways, they put other drivers at risk if they are involved in an accident because the insured driver, if they are not at fault, will be on the hook for payment of their own damages until they can secure payment from the other party. This is an unfair situation for any insured driver.

Car insurance is quite complex and quite detailed about who and what is covered under the insurance plan. Knowing the ins and outs of a vehicle insurance policy is paramount. With the growing popularity of transportation network companies like LIFT and UBER, uninsured motorists may be a problem because the companies may not completely cover the drivers, leaving them vulnerable if involved in an accident. Drivers participating in this type of transportation program need to know about the coverage, especially since having to come up with out of pocket for fees that insurance would otherwise cover is no fun.

Now, even in situations when an uninsured or an underinsured motorist is the cause of an accident, the victim can still bring a claim in court for damages when appropriate. Damages can either be compensatory or punitive. Compensatory damages cover property bills, medical bills and any other expenditure related to the accident. Punitive damages are meant to deter people from a certain kind of conduct and are at the courts discretion. Motorists should have insurance to avoid any of the issues that accompany uninsured and underinsured drivers.

Source: YourErie.com, “Participating Drivers and Riders Face Insurance Risk,” June 2, 2014