The Importance of Uninsured Motorist Coverage: Why You Shouldn’t Skip It
If you live in an at-fault state for auto insurance — which is most of them — the insurer for the driver who caused the accident pays for damages. Sounds fair, doesn’t it? But what happens if the driver at fault has no policy in place? Or doesn’t have enough coverage to pay for the damage to your vehicle?
Now you’ve got a problem — unless you have uninsured motorist insurance, also known as UM coverage.
Understanding the Necessity of UM Coverage
Your accident was easily judged to be the other driver’s fault. There were witnesses, and the other driver was charged with a DUI. Case closed. That driver’s insurer must pay for your bodily injuries and the damage to your vehicle.
What Happens in an Accident with an Uninsured Driver?
Except…the other driver does not have an auto policy in place. You take them to court — and win. But have you heard that expression, “like getting blood from a stone?” What it means is that you win thousands of dollars from an uninsured motorist, but they have no money. That’s why they refused the legal obligation to carry insurance in the first place.
So now what?
If you have uninsured motorist coverage, your own insurer will cover your claims if the driver at fault does not have an auto policy.
About one out of every seven drivers does not have an auto policy. That’s how many uninsured drivers are coming at you, passing you, and riding your bumper every time you’re on the road. What do you think of those odds?
Uninsured vs. Underinsured Motorist Coverage
Some drivers have auto insurance, but their policy limits are low. If their at-fault accident involving your vehicle is little more than a fender bender, their insurance might be sufficient. But if the accident causes injury to you or others in your car, or the vehicle sustains tens of thousands of dollars in damages — you’re out of luck. The underinsured motorist’s insurer can’t fully pay your bills, so you’re stuck with them.
Similar to uninsured motorist UM coverage, you can also get underinsured motorist coverage as financial protection against the low policy limits of at-fault drivers. Your uninsured/underinsured benefits mean that your insurer will pay the bills if the responsible party can’t — even in an at-fault state.
The Legal Landscape and Requirements
Is UM coverage mandatory? Not everywhere. In about half of U.S. states, all auto policies must carry uninsured/underinsured motorist coverage. The rest of the states make this insurance optional, but in many cases, you must sign a waiver to reject the policy.
While it might look like your premiums are more affordable without UM coverage if you have the choice, the numbers quickly turn against you if you cross paths with an uninsured or underinsured driver.
The Pros and Cons of UM Coverage
Perhaps the biggest advantage of having uninsured motorist protection is that you won’t have an idled car because it needs thousands of dollars in repair work that you can’t afford. You’re not suddenly deeply in debt with repair bills or in desperate need to buy a new car to replace your totaled vehicle.
The additional cost of UM can vary based on the percentage of uninsured drivers in your state. If you live in a state with a higher-than-average ratio of uninsured to insured drivers, you might pay more. But it will still be a small part of your total premium and will pay off quickly if you’re hit by one of those one-in-seven drivers.
Also, keep in mind that you can get the best rates by doing business with an independent agent. Instead of working for just one insurance carrier, independent agents have contractual relationships with several. That means they can answer your common auto insurance questions and shop for the most affordable policy on your behalf.
Do I need uninsured motorist coverage?
Hopefully, you now see that there really are no drawbacks to UM coverage. Conversely, there are high pocketbook risks on every car trip you take without it. If you don’t have it, ask your auto insurance agent for the low-cost added financial protection.
Don’t Wait Until You Need It, Get Uninsured Motorist Coverage from Acceptance
Read your policy or ask your insurance agent to explain your coverage and whether UM is part of it. If it’s not, let your Acceptance independent auto insurance agent find you the ideal protection at the most affordable rates. That’s what we do.
Simply call Acceptance Insurance at 877-405-7102 or get a quick online quote. You can also find an office near you and discuss your total auto insurance plan with one of our knowledgeable agents. We’ll show you how you can lower your risk at little or no additional cost over your current premiums.
