The Importance of Uninsured/Underinsured Motorist Coverage
What if you were stuck with a huge bill after a car accident that was not even your fault?
Normally, if someone else is at fault for an accident, their car insurance will cover the damage they caused. That is assuming they have enough coverage or any insurance at all. If not, you may be stuck with some or all of the bill for your repairs.
It is possible to protect yourself from this situation with uninsured/underinsured motorist coverage, which has several advantages. That said, it is not the best choice for every driver. Should you have uninsured motorist coverage before your next drive? Keep reading to find out.
Understanding the Basics of Uninsured Motorist Protection
Do you need uninsured motorist coverage? To answer that question, you need to learn more about how this special form of insurance works. In short, if you are hit by someone who does not have enough coverage or has no insurance, your own added insurance plan will help pay for the damage to your vehicle.
Most carriers bundle uninsured and underinsured plans together, and there are certain states where UM/UIM coverage is mandatory. Even outside of those states, though, it is always recommended that you have that extra protection because you may be more vulnerable on the road than you first imagined.
Why Insuring Against the Uninsured Matters
For us, the answer to “Should you have uninsured motorist coverage?” is always “yes,” because otherwise, it just takes one careless driver to stick you with some major bills. Normally, mandatory liability insurance is designed to pay for the damage to people and property caused by the at-fault driver. If they do not have such a policy, though, you could be stuck paying for both extensive repairs and medical bills.
Navigating Through Uninsured Risks on the Road
Most of the time, we take it for granted that everyone on the road is properly insured. After all, the vast majority of states require liability coverage for all drivers, which can help pay for any damage that they might end up causing.
However, far more drivers than you might think have absolutely no insurance. On top of that, many who do have liability policies may not have enough to cover damage to your car and/or to your body. That means you could be stuck with a very expensive bill unless you have the UM/UIM policy to protect yourself.
The Prevalence and Perils of Uninsured Driving
Chances are you would already like a lower car insurance premium, so you may be tempted to skip out on getting extra coverage for uninsured motorists. However, the roads are not as safe as you might assume: In 2022, it is estimated 1 in 7 drivers are completely uninsured, and more than that are carrying insufficient protection.
Those stats are nationwide, and things may be worse in your own state. For example, in Florida, 1 in 5 drivers have no liability policy. When a full 20% of those on the road cannot pay for the damage they cause, it is important to carry your own added protection.
What Does Uninsured Motorist Coverage Entail?
By now, you may be tempted to purchase an underinsured motorist policy for yourself, as you should. Keep reading to find more information on how a policy for uninsured motorists and underinsured motorists works, including what it covers. These plans can easily save you thousands of dollars after someone else causes an accident.
Uninsured Motorist (UM) vs. Underinsured Motorist (UIM) Coverage Explained
While they are typically sold as a package, UM and UIM cover different things. UM is designed to pay for the damage to your car and any subsequent medical bills for you and your passengers after you are hit by a motorist who has no insurance whatsoever. UIM does the same thing, except it pays out when you are hit by a motorist who has insufficient protection to pay for the damage they have caused.
Covering Medical Expenses and Property Damage
Uninsured/underinsured motorist coverage goes beyond just the basics of handling immediate repairs and medical costs. Here’s what they typically cover:
- Medical Expenses: If you or your passengers are injured in an accident caused by an uninsured or underinsured driver, this coverage can help pay for medical expenses, including hospital visits, surgeries, rehabilitation, and even funeral costs if necessary.
- Property Damage: In some states or policies, uninsured/underinsured motorist coverage may also cover damage to your vehicle or other property if the at-fault driver lacks sufficient coverage to pay for repairs. However, property damage may not always be included unless specified, as it depends on your specific policy and state laws.
This coverage is important because it ensures that you’re not left paying out of pocket for significant medical bills or property damage caused by someone else’s lack of adequate insurance.
Delving Into Coverage Details
Do you need uninsured motorist coverage? If you have decided that the answer is “yes,” that naturally leads to another big question: Just how much do you really need to get? Navigating how much you will need to stay safe while also abiding by any state requirements will help you choose an amount that is just right for your own needs but does not end up adding too much cost to your monthly premium. And, as always, your neighborhood independent agent will be happy to help you determine your perfect amount.
Determining the Right Amount of UM/UIM Coverage You Need
When selecting UM/UIM plans, you need to specify the limits for damage to your property (the car) and damage to your body (medical bills for yourself and your passengers). In general, the property damage amount should match the cost of the vehicle unless you already have robust collision protection. The body damage amount should mirror the limit you have on your liability policy.
The Legalities: State Requirements and Coverage Limits
Some states require you to have either UM or UIM plans; otherwise, it is a form of optional auto insurance coverage. Additionally, the majority of states require liability protection at a minimum and will set limits for it. The drivers you need to worry about are those who have not met that minimum or have no policy.
Of course, to avoid being part of the problem, you need to make sure you are meeting the liability limits required by your state. And remember, there are many good reasons you should not just get the minimum protection for your car insurance, including not having enough to cover someone’s damage.
Additional Considerations in Selecting Motorist Coverage
Should you have uninsured motorist coverage? By now, you have most of the information necessary to make your decision. However, there is one thing left to consider: how some of your existing forms of insurance may determine how much UM/UIM you need.
When Health Insurance and Motorist Coverage Intersect
A big part of UM/UIM plans is that they cover your health bills after an accident. However, those who already have good health insurance may not want this added protection because they are already covered. You should know, though, that UM/UIM can do things health insurance cannot, including covering the medical bills of your passengers and possibly covering lost wages. Plus, UM and UIM have no health deductible to worry about.
Collision and Comprehensive Coverage vs. Uninsured Motorist Coverage
Those with a good collision policy do not typically need UM/UIM plans because they can already repair their vehicle regardless of who is at fault. If you have comprehensive but not collision, though, you may need the added protection in case the other driver cannot pay for the damage in an accident where they are at fault.
Make Sure You Are Covered from the Unexpected
Should you have uninsured motorist coverage? You now have enough information to help answer that question. You also know exactly what these plans cover and why they are so important. But do you know who can take care of this and all your other insurance needs?
At InsureOne, our priority is to keep you safe whenever you are on the road. Once you are ready to get the security and customer service you deserve, come get a quote online. Remember, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you.