Getting into a car accident can be a very traumatic experience, especially if you and the other people occupying your vehicle are injured. If the other motorist is at-fault, in most states they are obligated to pay for your medical bills and compensate you for your pain and suffering (see the article “What is No-Fault insurance? to see how bodily injury coverage works in No-Fault states).
But what happens when the motorist who is at-fault doesn’t have enough insurance to cover your medical bills, or possibly doesn’t have any insurance at all? One option would be to take the motorist to blame to court. But this could be a complicated, drawn-out process. Who knows how long it will take until you are compensated for your injuries, if ever. The motorist who is at-fault may not be worth much money and the entire process might be in vain.
Auto insurance companies offer another option. It is called underinsured/uninsured (UIM/UM) motorist coverage.
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How It Works
Let’s say you get into a car accident and the other motorist is at-fault. Your total medical payments, including loss wages, amount to $300,000. The other motorist only carries the basic limits of bodily injury liability for their state , which is only $100,000. Since you have underinsured/uninsured coverage, your insurance company pays for the other $200,000.
Let’s evaluate the above scenario, but this time the at-fault motorist doesn’t carry any insurance at all. In this case, your insurance would pay for the entire $300,000.
Why Should I Buy This Coverage?
The whole idea just doesn’t seem right – you have to purchase more auto insurance coverage because someone else can’t afford it or chooses not to? It’s a sad fact, but many motorists drive without adequate insurance coverage or sometimes without any insurance at all. The Insurance Research Council estimates that up to 15% of the U.S. driving population doesn’t have adequate insurance. You must protect yourself, your family, and your financial well-being.
If you disagree, think of the time and energy you would spend trying to squeeze money of out of a UIM/UM motorist. Does saving a few extra bucks a month, then having endure this process seem worth it to you?
If you purchase this insurance coverage, you can be sure that you’ll receive the money you are due quickly. Then, afterwards, the auto insurance company can go about getting their money back from the at-fault party. It’s important to realize that this coverage doesn’t free the at-fault motorist from all responsibility – it just guarantees you will receive your medical payments (including loss wages) in a timely manner.
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How Much Does It Cost?
The good news is that UIM/UM is relatively inexpensive. You can purchase literally a few hundred thousand dollars of coverage for only tens of dollars over a period of six months. And you can find the cheapest rates for this coverage if you get multiple online quotes here at Cheap Quotes Car Insurance.
Other Highlights Of This Coverage
UIM/UM can also cover you as a pedestrian in the event of a hit-and-run. If you crossing the street and are struck by a car, UIM/UM will cover your medical expenses. This is noteworthy because health insurance often will pay for your medical bills, while UIM/UM insurance will also pay your lost wages if you happen to miss work.
You can also purchase uninsured motorist property damage coverage (UMPD). This may not seem necessary, as comprehensive and collision coverage will normally cover property damage in an event of an accident with underinsured/uninsured motorist. But sometimes you have the option of purchasing this insurance without having to buy collision and comprehensive coverage. If you seek to buy this UMPD separately, use the online quote form here to find the cheapest rates available.
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