As a driver, you know how important it is to have car insurance. It’s not just about protecting your vehicle—it’s about protecting yourself and others on the road. But what happens if you get into an accident with someone who doesn’t have insurance or has insufficient coverage? This is where Uninsured and Underinsured Motorist Coverage (UM/UIM) comes into play.
UM/UIM Coverage: A Shield for the Unexpected
Believe it or not, there are still many drivers on the road who don’t have car insurance. Not all states have mandatory car insurance laws, and even in those that do, some drivers may only carry the minimum required coverage. In fact, according to the Insurance Research Council, about 14% of all motorists in the US are uninsured as of 2022. That’s about one in every seven drivers!
This can create a gap in coverage for you as the victim, leaving you to foot the bill. To prevent this, some states require that uninsured and underinsured motorist coverage be included in your car insurance policy unless you specifically decline it. It’s important to check the requirements in your area!
What is Covered with Uninsured Motorist Coverage?
So, what exactly is Uninsured Motorist Coverage (UM)? Simply put, it protects you and your passengers if you are involved in an accident with an uninsured driver. Here are some of the inclusions and benefits of UM coverage:
- Bodily Injury: This covers medical expenses, lost wages, and other injury-related expenses for you and your passengers if you’re hit by an uninsured driver.
- Property Damage: This can cover the repair or replacement costs of your vehicle if it’s damaged by an uninsured driver. Note that this is not available in all states.
- Hit-and-Run Accidents: Many uninsured motorist policies will cover injuries or damages if you are involved in a hit-and-run or if you are hit by a car as a pedestrian.
- Higher Coverage Limits: You can typically choose higher coverage limits for UM coverage than you would have for liability coverage. This allows for more protection in the event of a serious accident.
Understanding Underinsured Motorist Coverage (UIM)
Now let’s talk about Underinsured Motorist Coverage (UIM). This type of coverage comes into play when you are involved in an accident with an insured driver who is at fault, but their insurance limits are not enough to cover all of your damages. In this case, UIM coverage will help make up the difference so that you are not left with out-of-pocket expenses.
In terms of coverage and limits, UIM usually has the same inclusions as UM, covering bodily injury, property damage (in some states), hit-and-run accidents, and pedestrian injuries. UIM coverage also has higher coverage limits than the minimum required by state laws. This means that you may receive more compensation for damages if you are involved in an accident with an underinsured driver.
Varying Coverage Requirements by State
Some states have mandatory UM/UIM coverage while others make it optional. Note that even in states where it is not mandatory, insurance companies are still required to offer uninsured and underinsured motorist coverage as an option. However, you have the choice to decline or select a different coverage limit.
In some states, UM/UIM coverage may be automatically included in your car insurance policy unless you specifically reject it. These are known as “add-on” or “opt-out” states. It’s important to review your policy and make sure you understand the coverage included and whether or not you have the option to adjust it.
Drive Confidently with Bethany Insurance
Whether or not uninsured and underinsured motorist coverage is a legal requirement in all states, it is an important part of your car insurance policy. It provides additional protection and benefits in the event of an accident with an uninsured or underinsured driver, keeping you and your passenger safe from unexpected out-of-pocket expenses in the case of an accident.
At Bethany Insurance, we understand the importance of the right auto coverage and can help you find the policy that best suits your needs. So don’t hesitate, to contact us today to get a free quote. After all, you never know when you may encounter an uninsured or underinsured driver on the road.
