Understanding Uninsured Motorist Coverage: How It Protects You On The Road

​Driving is an essential part of daily life for many people, but it comes with inherent risks. While most drivers are responsible and carry the required auto insurance, not everyone on the road is insured. In fact, a significant percentage of drivers either have no insurance or carry insufficient coverage to fully compensate for damages in the event of an accident. This is where uninsured motorist (UM) coverage comes into play. Understanding uninsured motorist coverage is crucial for protecting yourself financially if you’re involved in an accident with an uninsured or underinsured driver.

What is Uninsured Motorist Coverage?
Uninsured motorist coverage is a type of auto insurance that provides financial protection if you are involved in an accident with a driver who does not have insurance or lacks sufficient coverage to pay for the damages. UM coverage can help cover medical expenses, lost wages, and other costs associated with injuries sustained in an accident caused by an uninsured driver. This coverage is particularly important in states where the number of uninsured drivers is high or where minimum insurance requirements are relatively low.

Types of Uninsured Motorist Coverage
There are two primary types of uninsured motorist coverage: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). Some policies may also offer underinsured motorist coverage (UIM), which provides additional protection if the at-fault driver’s insurance is insufficient to cover your damages.

1. Uninsured Motorist Bodily Injury (UMBI)
UMBI coverage helps pay for medical expenses, lost wages, pain and suffering, and other related costs if you or your passengers are injured in an accident caused by an uninsured driver. This coverage can also apply if you are a pedestrian or cyclist hit by an uninsured driver.

For example, if you’re involved in an accident with an uninsured driver and suffer injuries requiring medical treatment, UMBI coverage can help pay for your medical bills, rehabilitation, and any lost income due to your inability to work during recovery. UMBI coverage is especially valuable in serious accidents where medical costs can quickly escalate.

2. Uninsured Motorist Property Damage (UMPD)
UMPD coverage helps pay for repairs to your vehicle or other property if it is damaged in an accident caused by an uninsured driver. This coverage is typically subject to a deductible, which you must pay out of pocket before your insurance kicks in.

For instance, if an uninsured driver hits your car, causing significant damage, UMPD coverage can help cover the cost of repairs. This can be particularly helpful if you do not have collision coverage, which also covers damage to your vehicle regardless of fault.

3. Underinsured Motorist Coverage (UIM)
Underinsured motorist coverage comes into play when the at-fault driver has insurance, but their policy limits are not high enough to cover all of your expenses. UIM coverage can bridge the gap between the at-fault driver’s insurance payout and the total cost of your damages.

For example, if an at-fault driver has liability insurance with a limit of $25,000, but your medical expenses total $50,000, your UIM coverage can help cover the remaining $25,000, ensuring that you are not left with significant out-of-pocket expenses.

Why You Need Uninsured Motorist Coverage
While many states require drivers to carry auto insurance, a significant number of drivers either do not have insurance or carry only the minimum required coverage, which may not be enough to cover serious accidents. Uninsured motorist coverage is essential for several reasons:

• Protection Against Uninsured Drivers: If you’re involved in an accident with an uninsured driver, you could be left paying for your own medical expenses and vehicle repairs out of pocket. UM coverage ensures that you have financial protection in this scenario.
  
  
• Coverage for Hit-and-Run Accidents: If you are the victim of a hit-and-run accident, uninsured motorist coverage can help cover your expenses. In many cases, hit-and-run drivers are not identified, meaning you would have no other source of compensation without UM coverage.
  
  
• Financial Security: Medical expenses, vehicle repairs, and lost wages can add up quickly after an accident. UM coverage provides peace of mind, knowing that you are protected financially if you are involved in an accident with an uninsured or underinsured driver.
  
  
• Affordable Peace of Mind: UM coverage is generally affordable, especially when compared to the potential costs of an accident with an uninsured driver. Adding UM coverage to your policy can provide significant protection without drastically increasing your premiums.

How to Choose the Right Uninsured Motorist Coverage
When selecting uninsured motorist coverage, it’s important to consider the level of protection you need based on your driving habits, the value of your vehicle, and your financial situation. Here are some tips for choosing the right UM coverage:

• Assess Your Risk: Consider the likelihood of encountering an uninsured or underinsured driver in your area. If you live in a state with a high percentage of uninsured drivers, you may want to opt for higher UM coverage limits.
  
  
• Review Your Current Coverage: Check your existing auto insurance policy to see if you already have UM coverage and whether the limits are sufficient. If you don’t have UM coverage, consider adding it to your policy.
  
  
• Consider Your Vehicle’s Value: If you drive an older or less expensive car, you may opt for lower UMPD coverage or even forego it if you have collision coverage. However, if your vehicle is newer or more valuable, it’s wise to have sufficient UMPD coverage.
  
  
• Factor in Your Financial Situation: If you have limited savings or cannot easily cover unexpected expenses, higher UM coverage limits can provide valuable financial security in the event of an accident.

Uninsured motorist coverage works in conjunction with other types of auto insurance, such as liability, collision, and comprehensive coverage. It is designed to cover gaps that may exist when an at-fault driver does not have adequate insurance. For example, if you have collision coverage and are hit by an uninsured driver, your collision coverage would pay for your vehicle repairs, and your UM coverage could help with medical expenses if needed.

It’s also important to note that some states require you to have uninsured motorist coverage as part of your auto insurance policy, while in other states, it is optional but highly recommended.

Conclusion
Uninsured motorist coverage is a vital component of a comprehensive auto insurance policy, providing financial protection in the event that you are involved in an accident with an uninsured or underinsured driver. This coverage can help cover medical expenses, vehicle repairs, and other costs that might otherwise come out of your pocket. Given the prevalence of uninsured drivers on the road, having UM coverage is not just a smart financial decision, but also a necessary one for protecting yourself and your loved ones. By understanding the importance of uninsured motorist coverage and selecting the right limits for your needs, you can drive with greater peace of mind, knowing that you’re prepared for whatever the road may bring.

At Best Insurance Group, LLC, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (970) 674-5000. You can also request a free quote by CLICKING HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.