When you build your auto insurance policy, you focus on liability, collision, and comprehensive coverages. But there's another crucial type of protection that often gets overlooked: Uninsured and Underinsured Motorist (UM/UIM) coverage. Despite its importance, many drivers don't fully understand what it does or why it's so vital.
Fast Auto Quote believes every driver should know about this "unseen shield" that can protect them from significant financial hardship.
What is Uninsured Motorist (UM) Coverage?
Uninsured Motorist (UM) coverage steps in to protect you, your passengers, and sometimes your vehicle if you're involved in an accident caused by a driver who has no auto insurance at all. It also typically covers damages caused by a hit-and-run driver who cannot be identified.
UM coverage often comes in two parts:
- Uninsured Motorist Bodily Injury (UMBI): Helps pay for your and your passengers' medical expenses, lost wages, and pain and suffering if you're injured by an uninsured or hit-and-run driver.
- Uninsured Motorist Property Damage (UMPD): Helps pay for repairs to your vehicle if it's damaged by an identified uninsured driver. (Note: UMPD is not available in all states, or may have specific conditions or a deductible. In some cases, collision coverage might be used instead for vehicle damage.)
What is Underinsured Motorist (UIM) Coverage?
Underinsured Motorist (UIM) coverage provides protection if you're in an accident caused by a driver who *has* auto insurance, but their liability limits are too low to cover all of your medical bills or vehicle repair costs. Essentially, their insurance runs out, and your UIM coverage can help make up the difference, up to your UIM policy limits.
Like UM, UIM coverage typically includes:
- Underinsured Motorist Bodily Injury (UIMBI): Helps cover the gap between the at-fault driver's bodily injury liability limit and the actual cost of your injuries.
- Underinsured Motorist Property Damage (UIMPD): Helps cover the gap for property damage if the at-fault driver's property damage liability limit is insufficient (less common and not available everywhere).
UM and UIM coverages are often bundled together in policies.
Why is UM/UIM Coverage So Important?
Consider these points:
- High Number of Uninsured Drivers: Despite legal requirements, a surprising number of drivers on the road are uninsured. The Insurance Research Council estimates that about 1 in 8 drivers nationwide is uninsured, though this varies significantly by state.
- Minimum State Requirements are Often Low: Many drivers only carry the minimum liability coverage required by their state. These minimums can be quite low and may not be nearly enough to cover serious injuries or extensive vehicle damage in a significant accident.
- Protecting Yourself and Your Family: Without UM/UIM coverage, if you're hit by an uninsured driver or one with inadequate limits, you could be left paying for substantial medical bills, lost income, and car repairs out of your own pocket, even though the accident wasn't your fault.
- Hit-and-Run Incidents: UM coverage is often your primary recourse for covering injuries in a hit-and-run scenario where the at-fault driver is never found.
State Requirements vs. Recommended Amounts
Some states mandate UM/UIM coverage, while in others it's optional. Even if it's optional or if the state minimums are low, it's highly recommended to purchase UM/UIM coverage with limits that are at least equal to your own liability coverage limits. This ensures you're giving yourself the same level of protection you're providing to others.
The Real-Life Impact
Imagine being seriously injured in an accident caused by an uninsured driver. Your medical bills could quickly run into tens or even hundreds of thousands of dollars. Without UMBI, you'd be responsible for these costs, potentially leading to devastating financial consequences. UM/UIM coverage acts as a safety net in these unfortunate situations.
An Essential Layer of Protection
Uninsured and Underinsured Motorist coverage is not a luxury; it's an essential component of a comprehensive auto insurance policy. It protects you from the irresponsible actions of others and provides peace of mind knowing you have a financial backup if the unexpected happens.
When getting quotes with Fast Auto Quote, be sure to consider adequate UM/UIM limits for your protection.