Uninsured and Underinsured Motorist Coverage: What You Need to Know


If you’ve ever been in a car accident, you know how frustrating and stressful it can be. But imagine being in an accident with an uninsured or underinsured driver. Suddenly, you’re left wondering who will pay for the damages and medical expenses. That’s where uninsured and underinsured motorist coverage comes in. In this article, we’ll go over everything you need to know about this type of coverage and why it’s important.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage (UM) is a type of insurance that protects you if you’re involved in an accident with a driver who doesn’t have insurance. This coverage can help pay for your medical expenses, lost wages, and other damages that result from the accident.

It’s estimated that about 1 in 8 drivers in the US is uninsured. That means if you’re in an accident, there’s a significant chance the other driver won’t have insurance. Without uninsured motorist coverage, you would be responsible for paying for the damages and medical expenses out of your own pocket.

What is Underinsured Motorist Coverage?

Underinsured motorist coverage (UIM) is similar to uninsured motorist coverage, but it applies when the other driver has insurance, but their policy limits aren’t high enough to cover all of your damages. In this case, your underinsured motorist coverage would kick in and help cover the remaining costs.

For example, let’s say you’re in an accident with a driver who has a policy limit of $25,000. If your medical expenses and damages total $50,000, the other driver’s insurance will pay up to their policy limit of $25,000. Your underinsured motorist coverage would then pay the remaining $25,000, up to your policy limit.

Why Do You Need Uninsured and Underinsured Motorist Coverage?

There are a few reasons why uninsured and underinsured motorist coverage is so important. First and foremost, it can help protect you financially in the event of an accident. If you’re in an accident with an uninsured or underinsured driver, you could be left with dollars in medical bills, lost wages, and other expenses. Uninsured and underinsured motorist coverage can help cover those costs and prevent you from having to pay out of pocket.

Another reason to consider uninsured and underinsured motorist coverage is that it’s often relatively inexpensive. Depending on your insurance provider and policy, the cost of adding UM and UIM coverage to your policy may be relatively low. When you consider the potential financial benefits of having this coverage, it’s often worth the cost.

Finally, uninsured and underinsured motorist coverage can give you peace of mind. Knowing that you’re protected in the event of an accident can help alleviate some of the stress and anxiety that comes with driving. It’s always better to be safe than sorry, and having UM and UIM coverage can help ensure that you’re prepared for the unexpected.

How Does Uninsured and Underinsured Motorist Coverage Work?

If you’re involved in an accident with an uninsured or underinsured driver, the process for using your UM or UIM coverage is similar to making a regular insurance claim. You’ll need to report the accident to your insurance company and provide documentation of your damages and expenses.

Once your claim is approved, your insurance company will typically pay for your damages up to the policy limit of your UM or UIM coverage. It’s important to note that your coverage limit will depend on the specifics of your policy, so it’s important to review your coverage carefully to ensure that you have enough protection.

It’s also worth noting that in some states, uninsured and underinsured motorist coverage is mandatory. If you live in one of these states, you’re required to carry a minimum amount of UM and UIM coverage on your policy. Even if it’s not required in your state, it’s still a good idea to consider adding this coverage to your policy for the reasons we’ve outlined above.

Conclusion

Uninsured and underinsured motorist coverage is an important type of insurance that can help protect you financially in the event of an accident with an uninsured or underinsured driver. It’s relatively inexpensive, easy to add to your policy, and can provide peace of mind when you’re on the road.

If you’re interested in adding UM or UIM coverage to your policy, we recommend speaking with your insurance provider to learn more about your options. With the right coverage in place, you can drive with confidence and know that you’re protected in case the unexpected happens.

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