UM/UIM COVERAGE

Although auto insurance is mandatory, there are cases where you get into an accident with an uninsured driver. A coverage that can protect you from such situations is Uninsured Motorist Coverage (UM) and Underinsured Motorist Coverage (UIM). This coverage not only protects you from accidents where the other driver doesn’t have liability insurance but also when they have insufficient coverage to pay for your vehicle damages of bodily injury expenses.

Some consumers tend to consider Uninsured Motorist Coverage as unnecessary. However, UM/UIM coverage plays a very important role, and if there is no UM/UIM insurance, people have to go through the hassle of suing the other party to receive compensation for the loss caused by the accident. According to the IRC (Insurance Research Council) 13% of drivers in the U.S are uninsured, and the number isn’t declining.
The state with the highest rate of uninsured drivers is Mississippi (29.4%) followed by Michigan (25.5%), Tennessee (23.7%), New Mexico ( 21.8%) and Washington (21.7%).

What is more concerning, is that the accident probability and the amount of damage caused by uninsured drivers is higher than for insured drivers. The top reason for those that don’t have auto insurance is the cost.  However, it has been reported that 40 percent of the eight major accidents in the past decade have been caused by uninsured drivers. Due to this reason, liability coverage is legally required in most states, including Texas.

If you get in an accident with an uninsured or underinsured driver and are without UM/UIM coverage, you will have to pay a lot more for hospital bills or car repairs compared to the additional premium for purchasing the coverage. However, if you have the UM/UIM coverage, you can reduce financial expenses for accidents such as hit and run. You and your passengers will receive compensation for medical bills. UM/UIM coverage can also pay for lost wages if you can’t work because of the car accident. It is possible to sue the other driver even if you don’t have UM/UIM insurance, but if the other driver is incapable to provide compensation, you won’t be able to get enough or anything from the other person.

UM/UIM insurance is one of the coverages that are included in an auto insurance policy that is so-called full-cover car insurance.  Below are other coverages available in auto insurance that can be customized to the need of each insured.

Liability:

Covers the cost of the other driver’s injuries and property damage if you’re at fault in an auto accident.

Collision:

Coverage that can pay to repair your vehicle if it’s involved in an accident.

Other than Collision/ Comprehensive:

Coverage that protects against damage to your vehicle cause by non-collision accidents. For example, theft, fire, flood and vandalism.

PIP :

PIP ( Personal Injury Protection) covers medical expenses for you and your passenger if you’re injured in an accident.

Towing and Rental Reimbursement:

There are optional coverages such as “towing” and “rental reimbursement”. Rental reimbursement helps pay for your rental car costs while your car is being repaired due to a covered accident.

Q) What should you do if you get into an accident with an uninsured driver?

First, call the police to the scene of the accident.
Unless it is a major accident, the police may not come to the scene, but it is recommended that you report the accident.
Although it may be difficult to do so amid all the shock, having a police report can provide evidence when filing a claim. You should also contact your insurance agent if you need any assistance with filing a claim.