Uninsured and Underinsured Motorist Coverage: Why You Can’t Afford to Ignore It
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Contents
Introduction
You’re driving down the highway, minding your own business, when all of a sudden someone rear-ends you. You’re not hurt but your car is damaged. Who’s responsible for the damage? It’s a question that many of us don’t think about until something happens—and then it’s too late. The answer to this question might surprise you: it depends on how much insurance you have. If you’re driving without uninsured or underinsured motorist coverage (UM/UIM), then there are two possibilities: either (1) your car will be repaired by your own insurer at full value; or (2) neither party’s insurer will cover any damages because both drivers are considered equally at fault (or neither are). Neither scenario is ideal, but one has better outcomes than the other!
Who’s Responsible for the Damage to Your Car?
If you’re in an accident with a driver who doesn’t have insurance, the damage to your car is your responsibility. That’s because uninsured motorist coverage (UM) pays for any bodily injuries or property damage sustained by you and/or your passengers in an accident caused by someone without any auto insurance at all.
If you are involved in a crash with another vehicle and they do have auto liability coverage, but it’s not enough to cover all of their expenses related to the collision–including yours–then UIM kicks in again. This coverage helps pay for those out-of-pocket costs above what their own policy will cover up until that limit ($100K per person/$300K per accident).
What Can You Do to Reduce Your Risk?
If you have uninsured or underinsured motorist coverage, it’s important to know what your policy will and won’t cover. If you’re looking for ways to reduce your risk of an accident in the first place, here are some things you can do:
- Drive defensively! Don’t speed or tailgate other cars on the road. Make sure that when you pass someone else, they know about it by signaling first and then passing slowly at least five seconds later.
- Don’t drink and drive–or even ride in a car with someone who has been drinking alcohol (even if they aren’t driving). And don’t let passengers distract drivers by talking loudly or asking questions while he or she is behind the wheel.*
Why You Can’t Afford to Ignore Uninsured and Underinsured Motorist Coverage
The answer is simple: because you can’t predict when you’ll need it. And even if you think the chances are slim that any kind of accident will ever happen to you, it’s still worth getting uninsured motorist coverage because it’s cheap and easy to do so–and even if there isn’t an immediate need for the protection, having it in place could save thousands of dollars down the line.
If you’re driving around without any kind of insurance at all and get into an accident with another driver who doesn’t have enough insurance (or any at all), then their financial responsibility ends after paying out what was required under state law–and that means that whatever costs are left over fall onto your shoulders as well as theirs! This could include medical bills from injuries sustained during an accident; damage done to vehicles involved; lost wages due to time off work while recovering from injuries sustained during an accident…and more! Without enough coverage on both sides (you AND them), those costs add up quickly – especially when they involve high cost items like medical care or repairs needed after serious damage has been done by one or both parties involved..
If you’re driving without uninsured or underinsured motorist coverage, you’re taking a big risk.
If you’re in an accident with someone who doesn’t have insurance, there’s no guarantee that they will be able to pay for their share of the damages. And if they can’t pay their share of the damages, then it’s up to you–the person who was hit by them–to foot the bill yourself. That could mean shelling out tens or hundreds of thousands of dollars out-of-pocket before your claim is settled (and even then). If this happens while driving without UM/UIM coverage, it could put your finances in serious jeopardy for years after being involved in an accident caused by another driver who didn’t have enough liability insurance protection on their car or truck policy!
Conclusion
If you’re driving without uninsured or underinsured motorist coverage, you’re taking a big risk. You could be left with thousands of dollars in damages and medical bills if another driver causes an accident and doesn’t have enough insurance to cover it. If you want to avoid this situation, make sure that your car insurance policy includes UM/UIM coverage before heading out on the road–or get help from an agent who understands how important this kind of protection is today’s world!
