Uninsured/Underinsured Motorist: What You Need to Know
Most states in the U.S. legally require drivers to at least have liability insurance on the vehicle they’re driving. Yet that doesn’t stop a majority of drivers from driving without it. Here is how Uninsured Motorist works and why it is a good idea.
Uninsured/Underinsured Motorist (UM) is an extra coverage that can be added to an auto
insurance policy at any time. Adding UM to a policy helps pay medical expenses and other
related damages if you’re involved in an accident that was caused by a driver that does not
have liability insurance, or that does not have enough insurance to cover your expenses. This
coverage consist of UM Bodily Injury and UM Property Damage.
Uninsured Motorist Bodily Injury (UMBI): Covers medical bills, pain and other related expenses when
the driver that caused the accident does not have insurance.
Underinsured Motorist Bodily Injury: Covers medical bills, pain and other related expenses
when the driver that caused the accident does not have enough insurance to cover the
damages they’ve caused.
Uninsured Motorist Property Damage (UMPD): Covers damages to your property. Please note that most companies will not cover a hit and run as a covered incident under UMPD.
Being involved in an accident with an uninsured/underinsured driver can result in costs that
aren’t covered by having just liability coverage and even when you do have a full coverage
policy UM can be used to take care of your deductible through a CDW or Collision Deductible Waiver. As well as pay for your Bodily Injury.
When buying a policy, some tend to ask for “just liability or the state requirement” to get the cheaper price not knowing that adding UM coverage could only cost an additional $5-$20 per month, depending on the
limits. UM coverage ranges from the basic $15,000/30,000 bodily injury to $100,000/300,000,
while UM property damage is generally no higher than $3,500. Of course, every policy and
every insurance company is different. Some companies will cover some scenarios and not
others, that is why it is important to ask questions about your policy to your insurance agent
and always know what your are buying. Where’s the good in paying insurance if it won’t help
you? Buying car insurance isn’t just about fulfilling a state requirement, it’s about protecting
your family and your property. It’s important to know just how many options are available to
you and at what cost. If you want to compare using our free online rater you’ll have all your options laid out with very minimal work, just click here!