What Is Uninsured or Underinsured Motorist Coverage?

Imagine this: you’re driving down the road minding your own business when suddenly, a car runs a red light and slams into you. You’re shaken up, your car is damaged, and you’re facing a mountain of medical bills. To make matters worse, the driver who hit you doesn’t have any insurance.

This is where uninsured/underinsured motorist (UM/UIM) coverage comes in. It’s a type of car insurance that can help protect you financially if you’re in an accident with a driver who either doesn’t have any insurance or doesn’t have enough insurance to cover your damages.

Why is UM/UIM Coverage Important?

According to the Insurance Information Institute, about one in eight drivers in the US is uninsured or underinsured. That means there’s a significant chance that you could be in an accident with one of these drivers at some point in your life. Without UM/UIM coverage, you could be left on the hook for your medical bills, car repairs, lost wages, and other expenses.

What Does UM/UIM Coverage Cover?

UM/UIM coverage can cover a variety of expenses, including:

  • Medical bills: This includes the cost of doctor visits, hospital stays, surgery, and other medical treatment.
  • Lost wages: If you’re injured in an accident and you’re unable to work, UM/UIM coverage can help you replace your lost income.
  • Pain and suffering: You may be entitled to compensation for the physical and emotional pain you’ve suffered as a result of the accident.
  • Car repairs: If your car is damaged in the accident, UM/UIM coverage can help pay for the repairs.
  • Funeral expenses: If you’re killed in an accident, UM/UIM coverage can help your family pay for your funeral expenses.

How Much UM/UIM Coverage Do I Need?

The amount of UM/UIM coverage you need will vary depending on your individual circumstances. However, a good rule of thumb is to get at least the same amount of coverage as your liability insurance.

How Do I Get UM/UIM Coverage?

UM/UIM coverage is typically offered as an add-on to your car insurance policy. If you don’t currently have UM/UIM coverage, you should contact your insurance agent to add it to your policy.

In Conclusion

UM/UIM coverage is an important type of car insurance that can help protect you financially if you’re in an accident with an uninsured or underinsured driver. If you don’t currently have UM/UIM coverage, I urge you to consider adding it to your policy. It could save you a lot of money and heartache in the long run.

Additional Tips

  • Be sure to shop around for different quotes before you buy UM/UIM coverage.
  • Read your policy carefully to understand what is and is not covered.
  • Ask your insurance agent any questions you have about UM/UIM coverage.

I hope this blog post has been helpful. If you have any questions, please feel free to leave a comment below.

Additional Resources

I would also like to add that UM/UIM coverage laws vary from state to state. So, it’s important to check with your insurance agent or the Department of Motor Vehicles in your state to learn more about the specific laws in your area.

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