Did you know that approximately 14% of drivers, or one in seven, have no insurance? In 2023, the Insurance Research Council uncovered this. Should you meet with one of them, and you were involved in a crash with him, who will pay? This is where uninsured motorist coverage protects you financially. This article talks about the benefits offered and explains how it can help you be prepared when the unexpected comes.
Why You Should Care About Uninsured Motorist Coverage
This coverage offers financial security for the accident that resulted from a car accident involving an uninsured driver. You will not have to pay for damages and medical bills yourself. This should give you peace of mind while providing security in uncertain situations. After all, no one can foresee an accident. Taking precautions is the best choice for many drivers. Even if you think it’s unnecessary.
What is Uninsured Motorist Coverage?
Uninsured motorist (UM) covergae is a special auto insurance that keeps the driver safe in any collision. Specifically from an individual who drives without liability insurance. Your UM coverage steps up and helps pay for those costs should the fault rest with an uninsured driver. This coverage could include things like medical bills and repairs to your vehicle.
Clearing Up Uninsured vs. Underinsured Motorist Coverage
Most people are confused between UM coverage and UIM coverage. Let’s clear this up:
- Uninsured Motorist Coverage (UM): This is when the driver at fault has zero insurance.
- Underinsured Motorist Coverage (UIM): This is when the driver at fault has insurance. But the policy is not enough to fully cover all the damages.
Can You Rely on Other Drivers’ Insurance?
While we wish everyone who got behind the wheel was responsible and had good coverage, the fact is, most don’t. Too many people are satisfied with just meeting the minimum amount of insurance needed. And when you have an accident, this can really hurt you. This is where uninsured motorist coverage becomes important. It eliminates the financial aftermath due to another person’s carelessness.
Is UM Coverage Required in Your State?
The rules about uninsured motorist coverage differ by state. In some states, you are automatically required to carry it as part of your auto insurance. Other states make it optional. Even if it’s not required in your state, it is useful to think about how many uninsured drivers there are on the road when making this decision for yourself.
How Much Coverage Should You Have?
This all depends on your personal situation. When choosing the appropriate amount of uninsured motorist coverage, think about the value of your car, existing health insurance, and how much risk you can tolerate. As a general rule of thumb, matching UM coverage limits to liability coverage limits can provide you with balanced protection in case of an accident.
Debunking A Common Myth Regarding UM Coverage
Let’s separate the facts from the fiction surrounding uninsured motorist coverage.
“Collision coverage will cover everything if I get hit by an uninsured driver.”
While collision insurance can help with repairs to your vehicle, you may still have to pay a deductible. Plus, UM might provide coverage without a deductible in many states.
Contact SFM Insurance Today to Get The Right Coverage
Having the right coverage is critical. Buckle up, stay safe, and contact SFM Insurance today! We will help you determine the right policies to make sure you are covered in the event of an uninsured or underinsured driver.
