The Role of Uninsured and Underinsured Motorist Coverage

The Role of Uninsured and Underinsured Motorist Coverage - While it’s required by law in most regions for drivers to have insurance, not everyone follows the rules. Some drivers may have inadequate coverage or none at all. Uninsured and underinsured motorist coverage steps in to protect you in these situations.

What is Uninsured and Underinsured Motorist Coverage?

Uninsured Motorist (UM) Coverage: This coverage applies if you’re involved in an accident with a driver who doesn’t have insurance. It helps cover your medical bills, lost wages, and other expenses related to the accident.

Underinsured Motorist (UIM) Coverage: This kicks in when the at-fault driver has insurance, but their policy limits aren’t high enough to cover all of your damages.

Why is it Important?

Even though most drivers are required to have insurance, a significant number still drive without it. In the unfortunate event of an accident with such a driver, uninsured motorist coverage ensures you’re not left paying for damages out of your pocket. It’s an added layer of protection that prevents financial loss due to someone else’s negligence.

When Should You Consider This Coverage?

If you live in an area with a high number of uninsured drivers, or if you're concerned about the adequacy of others' coverage, uninsured and underinsured motorist coverage is a valuable addition to your policy. It provides peace of mind and financial security in unpredictable situations.