Cheap Uninsured Motorist Coverage

Uninsured motorist coverage (UM) protects you financially against drivers who have no liability car insurance. If an uninsured driver causes an accident, your UM will help take care of repairs and injuries you may suffer. Since 1 in 8 drivers has no insurance in the U.S., this coverage is well worth the expense.

What is Underinsured Motorist Coverage?

Underinsured motorist coverage (UIM) is protection that kicks in to help with medical and repair bills if an accident is caused by someone not carrying enough insurance to completely pay your bills. This is more common than you may think — in fact, you may be an underinsured driver yourself.

Drivers who opt for the minimum liability insurance required by their state may not have adequate coverage in many situations. For instance, in California, the minimum liability insurance required for property damage is $5,000. If another driver loses control of their vehicle on a rainy day and collides with your car, the cost of repairs could easily exceed $5,000. Although their insurance will cover that amount, you will be accountable for the remaining expenses. While you may choose to sue for the remaining amount, it may take time and may not guarantee a payout.

Your uninsured motorist coverage and underinsured motorist coverage will help you pay the bills if a driver with no insurance, one with not enough insurance or a hit and run, causes you damage and/or injury. Let a friendly Acceptance agent help you find the right insurance for you at the right price.

For the protection it delivers in a world of uninsured and underinsured drivers, this coverage is well worth the cost of a few dollars per month. On average, UM and UIM are 3-5% of your total insurance bill. That works out to $6 per month if your car insurance premium is $1,300 annually.

If you are involved in an accident caused by an uninsured (or underinsured) driver, your UM policy will kick in to help pay for your injuries and damages up to your policy limits. This policy extends to your passengers. Many no-fault states require this coverage as part of an attempt to cut down on personal liability lawsuits. In a no-fault state, your insurance covers your damages, even if the accident is your fault.

UM consists of bodily injury liability and property damage liability, just like your liability insurance policy. However, it is reserved for when an uninsured, underinsured or hit-and-run driver causes an accident where your property is damaged and/or you or your passengers are injured.

There are 19 states requiring this coverage. Other states ask that you decline it in writing. Check out the table below to see if your state requires uninsured or underinsured motorist coverage.

For the protection it offers at a relatively cheap price, UM is a great deal. Given that about 13% of drivers do not have insurance, this can protect you financially if you are involved in a collision with one of them. The bodily injury portion of your UM may pay for lost wages while you are recuperating, as well as injuries to passengers who do not have a robust health plan. Medicare and Medicaid will typically not begin until all other sources have been exhausted, so having UM can help get your treatment moving faster.

Consider if your state has more uninsured drivers. Some states that have high uninsured driver populations include New Mexico, Mississippi, Tennessee, Michigan, Kentucky, Georgia, Delaware, Colorado and Ohio.

Collision insurance will take care of your vehicle’s repairs (or replacement) in the event of an accident, regardless of who is at fault. Health insurance, in some cases, will cover your medical bills. In these situations, you should work closely with your local agent to determine if UM is necessary. If you have a high deductible on your health insurance, for example, UM might make sense since it comes with no deductibles, no co-pays and no co-insurance.