It might surprise you to know that despite the widespread awareness of how important automobile insurance is, nearly 12% of drivers (1 in 8) are uninsured! If you ask us, that’s more reckless than reckless driving! Not only does it endanger personal finances, but it also reduces the chance of a fair settlement in case of an accident. Though we may have our car insurance in order, there is no guarantee that the other guy in the accident has insurance. To make up for this shortfall, you can opt for uninsured motorist coverage (UM coverage).
What is uninsured motorist coverage?
Uninsured motorist coverage pays for both personal and property damages in the unfortunate event of an accident with an uninsured driver. If they had been insured, they could’ve filed a claim with their insurer – but since that’s not the case, your insurer can take care of your damages for you with uninsured motorist coverage. UM coverage also helps you in hit-and-run accidents when the offending driver has not been caught yet.
Do you need uninsured motorist coverage if you have collision coverage?
If you have collision coverage, you may not need UM coverage because you are already covered for damage to your car caused by an accident. If you do not have collision coverage, consider UMPD so that you are at least covered for damage to your car caused by drivers who don’t have insurance.
What are the components of UM coverage?
Uninsured motorist coverage can be split into two parts
- UM coverage for personal injuries: This covers your personal medical bills and is similar to Liability Bodily Injury coverage.
- UM coverage for property damage: This covers repair costs and maintenance for your own car following the accident. It is similar to Liability Property Damage coverage.
Other additional benefits of having uninsured motorist coverage include:
- Compensation for lost wages due to injury
- Medical care expenses
- Vehicle damage costs
- Expenses of replacement services (cooking, cleaning, housekeeping) that you might need during your recovery
Do I need uninsured motorist coverage?
‘Why do I need uninsured motorist coverage?’
If everything we’ve already explained isn’t enough to convince you, then it may help to know that UM coverage is a legal requirement in 20 states – at least UM coverage for personal injuries. To be safe, buy coverage above the minimum limit mandated by your state.
However, you can skip it if you already have collision and comprehensive coverage or if you have Personal Injury Protection (PIP).
How much does uninsured motorist coverage cost?
UM coverage is cheaper than regular personal injury or property damage insurance. For an annual coverage of between $25,000-50,000, the premium is an affordable $35-75 per year. However, the exact cost will depend upon your state and the number of uninsured drivers in the state.
How do I file a UM coverage claim?
Ensure that there is no confusion about the sequence of events leading to the accident. File a claim with your insurer as soon as you can collect all the important details. Having a written description of the incident, with photos and witness IDs to corroborate, will be helpful. Don’t forget to include medical records and bills from healthcare providers, along with important receipts.
How do I find the best car insurance that includes uninsured motorist coverage?
The easiest way to do that is by comparing car insurance quotes from different insurance providers online. You can start researching car insurance rates by getting free insurance quotes on Way.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
