There are different types of insurance, and all of them are important. There are also different coverages that can extend your protection. For example, liability insurance. Today in this article we will tackle another coverage. Wherein you can add it on top of your standard policy. The uninsured motorist coverage. We will discuss how and why this type of insurance is one of the best you can buy. Especially in terms of protecting you and your family.
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What is Uninsured Motorist Insurance?
Uninsured motorist coverage or sometimes referred as UM coverage. It was actually designed to protect people when an accident happens. How? Let’s have an example, let’s say Jeyz bumps your car and he doesn’t have auto insurance. With Uninsured Motorist Coverage, your own insurance will cover all the damages that Jeyz has done. In other words, UM coverage actually helps you in paying for the damages. Which of course was done by someone who doesn’t possess or carry auto insurance.
Take note of this, people who don’t carry auto insurance are called uninsured motorists. Actually, there’s a lot of drivers on the road who’s uninsured motorists. In other words they didn’t have auto insurance. Some of these uninsured motorists are also the most reckless in terms of driving. Having said that, considering uninsured motorist coverage is a must and also a wise idea.
In addition, we can say that uninsured motorist coverage is also a safety net coverage. It’s due to the fact that it can protect not only you but also your family. Specifically in an event where you’re hurt by someone who doesn’t carry a policy.
So, when you involve yourself in a car accident, that is not your fault. The at-fault driver of course is the one responsible for paying the damages. In other words, it’s the at-fault driver’s insurance who will shoulder the bills. Specifically both property damage and medical expenses. It’s a good thing right? But what if the at-fault driver doesn’t have auto insurance?
Always keep in mind, don’t be confident. Because like what we stated above, not all drivers possess auto insurance. In the United States for example, 1 out of 8 motorists are actually uninsured motorists. So you need to consider uninsured motorist coverage for your protection against them.
What are the two types of Uninsured Motorist coverage?
Like what we stated above. Uninsured motorist coverage protects you and your family. Including people in your household as long as they are your passenger. When you suffer in an accident that the at-fault driver doesn’t have auto insurance.
Actually there are two types of Uninsured Motorist Coverage. Wherein you can add on top of your auto insurance policy. These two types are Uninsured Motorist Bodily Injury Coverage or UMBI. And Uninsured Motorist Property Damage Coverage or UMPD. Let’s have a quick overview on these 2 types of UM coverage.
- Uninsured Motorist Bodily Injury Coverage – It works like this. Let’s say Ronnie sideswipes you, resulting in bodily injury. But he doesn’t have auto insurance. Automatically, your UMBI will shoulder the following expenses:
- Loss Wages
- Medical Bills (Hospital and medication)
- Funeral Expenses
Take note, if you don’t have UMBI coverage. There’s a possibility that you will shoulder your own medical expenses. Lastly, UMBI can also cover other non-medical bills like pain and suffering. It may also cover you if someone sideswipes you while riding your bike.
- Uninsured Motorist Property Damage Coverage – This coverage actually helps you when your car is damaged by someone who doesn’t have auto insurance. UMPD will shoulder the expenses for the repair of your car. Deductible may apply in this coverage.
Take note, if you don’t have UMPD or Collision coverage. There’s a chance wherein you’ll shoulder for the repair of your car. Or you can file a lawsuit against the at-fault driver.
The truth about uninsured motorist coverage
Here’s additional information for you to fully understand the Uninsured Motorist Coverage. So, as stated above it actually pays for your damages. Specifically if you are in an accident. Where the at-fault driver didn’t have auto insurance. In some states, like Florida, carrying bodily injury coverage is not a requirement. Well, almost half of the cars on the road don’t have that coverage. That’s why it’s important to carry UM coverage.
Also you need to remember, when an accident occurs. If the at-fault driver doesn’t have auto insurance. And at the same time you don’t have uninsured motorist coverage. You are most likely running out of luck. Due to the fact that there will be no insurance that will pay for the losses. Lastly, in terms of bodily injury on your uninsured motorist coverage. This can cover injuries to your passenger. Or anyone who’s driving your insured car.
Should you get UM Coverage?
Yes, because half of the drivers on the road don’t have insurance coverage. In addition, you need to remember that at some point. Insurance liability coverage is not good enough in the event of an accident. That’s why it’s important for you to take Uninsured motorist coverage into consideration. It can also fill in your wallet.
Uninsured motorist insurance is very affordable. So, having this kind of additional protection is a good and best idea. But always remember that the cost of UM coverage varies from auto insurer to another.
How Much Uninsured Motorist Coverage Do I Need?
There are some states that don’t require uninsured motorist coverage. But if you’re living in a state wherein UM coverage is required. You must buy at least your state’s requirements. Most of the time the minimum UM coverage matches your liability insurance. For example, if you have a split limit of 140/340. You need to buy 140/340 in UM coverage.