Car accidents can happen to anyone at any time, and they can be costly in terms of medical expenses, car repairs, and lost wages. While most states require drivers to have car insurance, not everyone follows the law. This is where uninsured and underinsured motorist coverage comes in.
In this article, we will explain what uninsured and underinsured motorist coverage is, why it is important for every car owner.
What is uninsured motorist coverage?
Uninsured motorist coverage (UM) is an optional auto insurance coverage that protects you in the event of an accident caused by a driver who has no liability insurance. In other words, if you are hit by an uninsured driver, your UM coverage will pay for the damages, medical expenses, and lost wages resulting from the accident. UM coverage also applies if you are the victim of a hit-and-run accident.
What is underinsured motorist coverage?
Underinsured motorist coverage (UIM) is another optional auto insurance coverage that protects you in the event of an accident caused by a driver who has liability insurance, but their coverage limits are insufficient to cover your damages, medical expenses, and lost wages. In other words, if the at-fault driver’s insurance is not enough to cover your damages, your UIM coverage will pay for the difference.
Why is uninsured/underinsured motorist coverage important?
Uninsured and underinsured motorist coverage is important because it provides a safety net for you and your passengers if you are involved in an accident with an uninsured or underinsured driver. If you do not have UM/UIM coverage and are hit by an uninsured or underinsured driver, you will be responsible for paying for your own medical expenses, car repairs, and lost wages. This can be a financial burden that most people are not prepared to handle.
Additionally, UM/UIM coverage can help protect you from hit-and-run accidents. Hit-and-run accidents can be particularly frustrating because the at-fault driver is often never identified. With UM coverage, you can file a claim and receive compensation for your damages, even if the at-fault driver is never found.
FAQs
Do I need uninsured/underinsured motorist coverage if I have health insurance?
While health insurance can help cover medical expenses resulting from an accident, it typically does not cover all costs. Uninsured/underinsured motorist coverage can help cover medical expenses, lost wages, and car repairs that are not covered by your health insurance.
Is uninsured/underinsured motorist coverage required by law?
Uninsured/underinsured motorist coverage is not required by law in all states, but some states do require it. It is important to check with your insurance provider to see if it is required in your state.
How much uninsured/underinsured motorist coverage do I need?
The amount of UM/UIM coverage you need depends on your personal circumstances. You should consider factors such as your financial situation, the value of your car, and your medical insurance coverage. It is recommended that you speak with your insurance provider to determine the appropriate amount of coverage for your needs.
Does uninsured/underinsured motorist coverage cover property damage?
Uninsured/underinsured motorist coverage typically does not cover property damage. However, some insurance providers may offer a separate coverage option for property damage caused by uninsured or underinsured drivers.
Is UM/UIM coverage expensive?
The cost of UM/UIM coverage varies depending on the insurance provider, your location, your driving history, and the amount of coverage you choose. However, it is generally considered an affordable option for added protection.
[…] main difference between uninsured and underinsured motorist coverage is the status of the other driver’s insurance coverage. Uninsured motorist coverage applies […]