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What Is Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage?

What Is Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage? is one of the greatest articles about Accident Insurance. There are numerous posts on the web that examine Accident Insurance, What Is Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage? among which we suggest for you. Hopefully the articles that we present below can be helpful, raise information and be considered a answer for you.

Those of us living in California, face an exposure to possible accidents with uninsured or underinsured motorists every day that we drive. This coverage is therefore important. If you are involved in an auto accident and the accident is the other party’s fault, this coverage on your policy would step up if the other party does not have insurance or the limits on their policy are not adequate to pay for your injuries and damaged vehicle.

There seems to be a lot of confusion regarding what this coverage covers, so here are a few tips to understand why you need to have adequate limits to be properly insured.

Purchase limits matching the Bodily Injury (BI) limits on your policy. Bodily Injury coverage pays for the injuries to another party when you are at fault in an accident. If the other party is at fault and involved in an accident with you and they have no insurance or inadequate limits, you will need to take care of yourself. This is why you need UM/UIM coverage.

Purchase the highest limits you can afford. Medical expenses are extremely high. Accidents can easily involve payouts in the hundreds of thousands of dollars and more.

Medical expenses are only part of the coverage included. Many people think if they have great health insurance, they have no real need for this insurance. Health insurance can have high deductibles and will not alter your home to accommodate if you are now wheelchair bound due to an auto accident. It will not pay for the essential services that you were once able to perform such as putting out the trash, etc. UM/UIM coverage will pay for this up to the limits you purchase.

Waiver of Collision deductible (WCD) and/ or Uninsured Motorist Property Damage (UMPD) also needs to be purchased. If the vehicle(s) you are insuring are insured with “Collision” coverage, for a very small premium, WCD will waive the deductible on repairs to your vehicle involved in an accident with an uninsured/underinsured driver. That way you will not have any out-of-pocket costs associated with this accident that was not your fault. If your vehicle does not have collision coverage due to older age of the vehicle or lower value, purchasing UMPD allows for up to $3500 to repair or replace that car.

The state of California only requires minimum limits of $15,000 per person and $30,000 per accident for bodily injury liability and $5,000 property damage liability. If anyone purchases these limits, they can register and drive their car. These are the same requirements that were set more than 40 years ago. $5,000 will not replace many bumpers today. Sadly, many people are not knowledgeable about the need to protect their assets and/ or future wages. The likelihood of being involved an auto accident with someone who is underinsured is very real.

The truth is that purchasing much better coverage can be extremely affordable and cost-effective. Don’t settle for the same coverage you have had for possibly years. Your coverage needs to keep up with the changes in your life. Please get coverage counseling from a knowledgeable insurance agent who is willing to put your needs first and not just sell a policy. Here’s to truly happy motoring!

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