Showing proof that you have auto liability insurance in necessary each time you to re-register your car and renew your driver’s license, besides these, it will also save you from having your license and driving privileges suspended, and from being issued a traffic ticket for violation of the insurance law which may be mandated in your state. However, if you get involved in a car accident which is the fault of another driver who happens to be uninsured, then you may end up facing financial problems because the auto insurance coverage that you carry is not for your own sake, but for the sake of the victim of an accident wherein you are the one at fault.

Cost of medical treatment and hospitalization, lost wages due to absence from work, and pain and suffering, are almost always the results of car accidents. To cover these cost and losses, the victim is legally allowed to claim compensation from the at-fault driver (this compensation is supposed to be paid by the at-fault driver’s insurance provider). However, if the liable driver is uninsured, then the victim has no other choice but to file a civil lawsuit against him/her for the purpose of seeking compensation (unless the at-fault driver makes an out-of-court settlement with him/her). Meanwhile, as the court case or settlement progresses, payment for all expenses resulting from the accident will have to come from the victim’s own pocket.

With more than 29 million drivers who freely drive on US roads and highways without carrying insurance, the scenario above is a common incidence. So many drivers who comply with the insurance law are being made to suffer more because of other’s non-compliance with this same law. However, instead of solving the issue by punishing the guilty, making them pay for the damages they have caused, and making sure that they purchase insurance coverage, the solution (which is actually more of a punishment) is passed back to law abiding citizens – by requiring them to get additional coverage, namely, the Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage.

Uninsured motorist coverage is designed to pay for all economic losses and damages suffered by victims of accidents that are blamable on uninsured drivers; this coverage also serves as a perfect financial safety net in accidents involving stolen vehicles or in hit-and-run accidents. Underinsured motorist coverage, on the other hand, is designed to supplement any insufficiency in the policy limit of the driver at fault. A policy may be insufficient to cover all damages if it amounts only to the minimum liability coverage required by the state.

Regardless of the limit of policies purchased, one thing remains to be factual – these added coverages are additional expenses for drivers; but since these are mandates, drivers can only comply. However, complying does not mean paying high premiums.

Drivers to seek help from independent car insurance companies before purchasing auto insurance. These companies readily provide drivers with insurance quotes from different firms to allow them to compare prices and find the rate that best suits their budget and individual coverage needs.