As I navigate the highways and byways on my daily commute, I often find myself wondering about the insurance coverage of the other vehicles sharing the road with me.
How many of those drivers lack proper auto insurance, leaving me vulnerable in the event of an accident? While we all hope to avoid collisions, the reality is they happen frequently due to no fault of our own.
That’s why uninsured motorist coverage should be an essential part of every auto insurance policy.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage protects you financially in the event of an accident caused by a driver who does not have auto insurance.
As the name suggests, this optional coverage applies when the at-fault party is uninsured.
What Does Uninsured Motorist Coverage Cover?
Uninsured motorist coverage compensates you for damages like medical bills, lost wages, and vehicle repairs in a crash caused by an uninsured driver.
It acts as a substitute for the insurance the other driver should have had.
If an uninsured driver hits your vehicle, uninsured motorist coverage can help pay for repairs to get your car back on the road.
It can also reimburse you for medical expenses from injuries.
Uninsured motorist coverage may provide compensation for pain and suffering as well depending on your policy limits.
Why Do You Need Uninsured Motorist Coverage?
Unfortunately, not all drivers obey the law and carry auto insurance.
According to the Insurance Information Institute, 13% of drivers in the U.S.
are uninsured.
If one of these drivers causes an accident with you, uninsured motorist coverage can save you from major out-of-pocket costs.
It provides essential financial protection in the event of a crash with someone who has no insurance to cover damages.
Uninsured motorist coverage is relatively inexpensive to add to an auto policy, yet it can make a huge difference if an uninsured driver hits you.
No one plans to get in an accident with an uninsured motorist, but by adding this optional coverage, you’ll have peace of mind knowing you’re protected financially in such an unfortunate situation.
Why Uninsured Motorists Are a Problem on the Road
As an insurance professional, I frequently have to explain to clients why uninsured motorist coverage is so important.
Uninsured drivers are unfortunately common on roads and highways, and they pose serious risks.
The Problem of Uninsured Motorists
According to the Insurance Information Institute, 13% of drivers in the U.S.
are uninsured.
These drivers have no insurance to cover damages or injuries they may cause in an accident.
If an uninsured driver hits you, the costs fall on you.
Uninsured motorist coverage protects you in the event that an uninsured driver causes an accident in which you or your passengers are injured or your vehicle is damaged.
This coverage reimburses you for medical bills, lost wages, pain and suffering, and vehicle repairs.
Without it, you would have to pay potentially enormous costs out of pocket.
Uninsured motorist coverage also provides protection if a hit-and-run driver causes an accident.
Since the at-fault driver flees the scene, they are essentially uninsured as far as you are concerned.
Your own uninsured motorist coverage can help cover costs in this situation.
The Solution: Uninsured Motorist Coverage
To protect yourself financially, I highly recommend purchasing uninsured motorist coverage with limits that match your liability coverage.
While the premiums add some cost, the potential benefits to you far outweigh the additional premiums.
Uninsured motorist coverage gives you peace of mind that you will be compensated even if an irresponsible driver causes you harm.
For most policyholders, the question is not why you need uninsured motorist coverage, but why you would go without it.
The Shocking Statistics on Uninsured Drivers
According to several stuD*es, approximately 1 in 8 drivers on the road are uninsured.
This means that there is a good chance you will be involved in an accident with an uninsured motorist at some point.
As an insured driver, uninsured motorist coverage helps ensure you are protected financially in this scenario.
The Prevalence of Uninsured Drivers
Shockingly, 13% of drivers lack auto insurance, according to the Insurance Information Institute.
This amounts to over 32 million uninsured vehicles on U.S.
roads.
Rates of uninsured motorists tend to be higher in certain areas of the country and among certain demographic groups.
For example, 26% of drivers in Florida and 23% of drivers in New Mexico lack insurance.
Young males, lower-income individuals, and undocumented immigrants also have higher rates of being uninsured.
Some uninsured drivers simply cannot afford coverage, while others choose not to purchase insurance even though they could afford it.
Regardless of the reason, uninsured motorists pose risks to all drivers on the road.
If involved in an accident, they are unable to pay for damages to your vehicle or medical bills, even if the accident was their fault.
Why You Need Protection
As a responsible driver, you likely carry liability coverage to protect other drivers in an accident that you cause.
However, your liability insurance does not cover damage to your own vehicle or injuries you sustain.
That is where uninsured motorist coverage comes in.
It helps ensure you do not end up paying high out-of-pocket costs in an accident caused by an uninsured driver.
Uninsured motorist coverage should be considered essential for all drivers.
No one can control the actions of other drivers on the road, so we must take precautions to protect ourselves financially in the event of irresponsible behavior by others.
While no one likes to pay for additional insurance, uninsured motorist coverage provides peace of mind that you will not be left vulnerable in the wake of an accident with an uninsured driver.
The Benefits of Having Uninsured Motorist Coverage
Having uninsured motorist coverage as part of your auto insurance policy provides several important benefits.
As the name suggests, uninsured motorist coverage protects you financially in the event that an uninsured driver hits your vehicle.
According to the Insurance Information Institute, about 13% of drivers in the United States are uninsured.
If one of these drivers causes an accident with your vehicle, uninsured motorist coverage will help pay for damages to your car as well as potential medical expenses.
Without this coverage, you would have to pay for these costs out of pocket.
Uninsured motorist coverage also provides protection if a hit-and-run driver strikes your vehicle.
In these unfortunate situations, there is no one to pursue to cover damages and injuries.
Your own uninsured motorist coverage becomes your only source for compensation.
In addition to covering damages from uninsured and hit-and-run drivers, uninsured motorist coverage protects you from underinsured drivers—those with some auto insurance but not enough to cover the costs from an accident they cause.
If an underinsured driver hits you, your uninsured motorist coverage can make up the difference between the at-fault driver’s coverage limits and the total cost of damages and injuries.
By purchasing uninsured motorist coverage, which is often quite affordable, you gain peace of mind knowing you have protection from irresponsible drivers who lack sufficient insurance.
While no one anticipates getting into an accident with an uninsured driver, having this coverage gives you financial security if the worst does happen.
Discuss uninsured motorist coverage options and limits with your insurance agent to make sure you have adequate protection for your unique situation.
How Much Uninsured Motorist Coverage Should You Get?
As with any insurance policy, the amount of uninsured motorist coverage you choose depends on your needs and risk tolerance.
I would recommend considering the following factors when determining how much coverage to purchase:
Your State’s Minimum Requirements
Check with your state’s department of insurance to determine the minimum amount of uninsured motorist coverage required.
Some states mandate relatively low limits, while others require more substantial coverage.
You’ll want to choose an amount that at least meets your state’s minimum.
Your Vehicle’s Value
If you own a valuable vehicle, you’ll likely want higher limits to fully protect your investment in the event of an accident with an uninsured driver.
For a brand new luxury vehicle, I would suggest limits of $100,000 per person and $300,000 per accident or higher.
Your Ability to Pay Out-of-Pocket
In the unfortunate event of an accident with an uninsured driver, uninsured motorist coverage helps ensure you don’t have to pay large amounts out-of-pocket for injuries or vehicle damage.
If you have limited savings, higher coverage limits are probably a good idea.
Lower limits mean you risk paying more from your own pocket in the case of a serious accident.
Peace of Mind
For some, purchasing higher coverage limits provides reassurance that you’ll be properly covered in the event of a major accident with an uninsured driver.
If you want maximum peace of mind, choose higher limits like $250,000 per person and $500,000 per accident.
The additional cost is often modest for the added coverage.
In summary, uninsured motorist coverage is crucial protection to have, and purchasing higher limits, if you’re able, is generally a good idea.
Speak with your insurance agent about the options available to ensure you have sufficient coverage based on your needs and situation.
With the right amount of uninsured motorist coverage in place, you can feel confident you’re properly protected if an accident occurs with a driver who lacks insurance.
Conclusion
After reading about the risks of being involved in an accident with an uninsured driver, I hope I’ve convinced you of the importance of uninsured motorist coverage.
For a relatively small increase to your premium, this coverage can provide essential financial protection should the worst happen.
While no one likes paying more for insurance, the potential costs of medical bills, lost wages, and vehicle repairs can be catastrophic without this safeguard.
Your life and livelihood are too valuable to gamble with.
Make sure you speak to your insurance agent to understand your options fully and determine the right level of uninsured motorist coverage for your unique situation.
Your future self will thank you.
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