Who needs uninsured motorists insurance?
UM insurance is particularly important for drivers in states where the number of uninsured drivers is high. It is also recommended for drivers who cannot afford to pay for damages caused by an uninsured or underinsured driver out of pocket. UM coverage can help protect drivers from significant financial losses and provide peace of mind knowing they have financial protection in case of an accident.
How does uninsured motorists insurance work?
UM insurance works in the following manner:
1. Accident with uninsured or underinsured driver: An accident occurs involving an uninsured or underinsured driver. The at-fault driver's insurance either does not cover the damages caused to you, or their coverage is insufficient.
2. Filing a claim: If you have UM insurance, you can file a claim with your insurance provider for the damages caused by the uninsured or underinsured driver. Your insurance company will then investigate the claim, assess the damages, and determine the amount payable under the UM coverage.
3. Coverage and limits: UM coverage typically has limits on the amount it will pay for medical expenses, lost wages, and other damages. These limits vary from policy to policy, so understanding the coverage amount and limitations is essential.
Benefits of uninsured motorists insurance:
* Financial protection: UM coverage can provide financial protection for drivers involved in accidents caused by uninsured or underinsured drivers, ensuring that they are compensated for their losses.
* Medical expenses: UM coverage helps cover medical bills and medical treatment related to the accident, including hospitalization, medication, and rehabilitation costs.
* Lost wages: UM coverage can reimburse drivers for lost wages resulting from the accident and their inability to work due to injuries sustained in the accident.
* Property damage: In some cases, UM insurance can also provide coverage for property damage caused by uninsured or underinsured drivers.
* Pain and suffering: Certain UM policies may also provide compensation for pain and suffering experienced as a result of the accident.
Drawbacks of uninsured motorists insurance:
* Additional cost: UM insurance is an optional coverage that comes at an additional cost, which may increase the overall premium of the auto insurance policy.
* Coverage limitations: UM coverage has policy limits, and any damages exceeding the coverage limit may not be fully covered.
* Fault determination: Determining who is at fault in an accident can be challenging, especially in hit-and-run situations, which can affect the ability to recover compensation under UM coverage.
Conclusion
Uninsured motorists insurance is a crucial coverage that provides financial protection to drivers in case of accidents involving uninsured or underinsured drivers. While it may come at an additional cost, the benefits of having UM coverage outweigh the potential financial risks of going uninsured.
