What You Need to Know About Uninsured Motorist Coverage

Uninsured Motorist (UM) coverage is a vital part of an auto insurance policy designed to protect you financially if you are involved in an accident with a driver who lacks adequate insurance. Here’s what you need to know:

What Is Uninsured Motorist Coverage?

Uninsured Motorist Coverage provides compensation for injuries or damages caused by an at-fault driver who either:

1. Doesn’t carry liability insurance at all.
2. Has insurance that doesn’t meet your state’s minimum requirements or doesn’t cover all incurred costs.

UM coverage often includes:

• Bodily Injury (UMBI): Covers medical bills, lost wages, and pain and suffering for you and your passengers.
• Property Damage (UMPD): Covers repair or replacement costs for your vehicle and other property.

Who Needs UM Coverage?

It’s especially important if:

• You live in a state with a high percentage of uninsured drivers.
• You have limited savings to cover medical or vehicle repair costs.
• You drive frequently in high-traffic areas, increasing the likelihood of accidents.

Benefits of UM Coverage

1. Financial Security: Covers expenses that the uninsured driver cannot.
2. Peace of Mind: Protects against unexpected costs from uninsured or underinsured drivers.
3. Legal Compliance: Some states require UM coverage as part of standard auto insurance policies.

How Much UM Coverage Do You Need?

Most experts recommend purchasing UM coverage that matches your liability limits. This ensures adequate protection for injuries and property damage.

UM Coverage vs. Underinsured Motorist Coverage

While UM covers accidents with drivers who have no insurance, Underinsured Motorist Coverage (UIM) applies when the at-fault driver’s insurance is insufficient to cover your losses.

Example Scenario

• You’re hit by an uninsured driver.
• Your medical bills total $30,000.
• With UMBI, your insurance covers these costs up to your policy limit.

Costs and Savings

UM coverage is generally affordable, especially when bundled with standard liability insurance. Speak to your insurer to understand the costs specific to your area and needs.

Uninsured Motorist Coverage ensures you’re not left financially vulnerable in case of an accident with an uninsured or underinsured driver. It’s a small investment that can provide immense protection.

Contact Toby Hansen Agency today to learn how UM coverage can safeguard you on the road!