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Do I need uninsured motorist coverage?

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Do I need uninsured motorist coverage?

Deciding whether to obtain uninsured motorist coverage (UM coverage) is crucial for anyone who owns an automobile. This coverage protects you when you are involved in an accident with a driver who lacks insurance or is underinsured. 

Uninsured motorist coverage is a safeguard that can provide financial protection when you’re involved in an accident with a driver who doesn’t have insurance. It’s essentially a safety net, ensuring you won’t be left to bear the financial burden of medical bills, property damage, and other related expenses when an uninsured driver is at fault.

There are several compelling reasons to consider uninsured motorist coverage:

  • Protection Against Uninsured or Underinsured Drivers: According to the Insurance Information Institute, around 13% of drivers in the United States are uninsured. If you’re involved in an accident with one of these drivers, UM coverage can help cover your expenses.

  • Peace of Mind: Accidents can happen at any time, and even though it’s mandatory in most states to have auto insurance, some drivers may still choose to drive without it. Knowing you’re protected in such situations, UM coverage offers peace of mind.

  • Hit-and-Run Incidents: UM coverage can also aid hit-and-run accidents, where the at-fault driver flees the scene, leaving you with no information to pursue a claim.

  • Medical Bills: If you or your passengers are injured in an accident with an uninsured driver, UM coverage can assist in covering medical expenses, which can otherwise be substantial.

  • Property Damage: It can also help pay for repairs to your vehicle or other property damaged in an accident caused by an uninsured driver.

Now, let’s delve into some scenarios where UM coverage proves invaluable:

Scenario 1: Uninsured Driver Causes an Accident Imagine driving on the highway, and an uninsured driver collides with your vehicle, causing significant damage. In this scenario, your UM coverage can cover the costs associated with repairs and medical expenses, ensuring that you aren’t left with a hefty financial burden.

Scenario 2: Hit-and-Run Accident You’re parked at a shopping mall, and an unknown driver backs into your car before speeding away. Without UM coverage, you’d have to pay for the repairs out of your pocket. But with UM coverage, you can claim to cover the damages.

Scenario 3: Underinsured Driver Sometimes, the at-fault driver may have insurance, but their coverage is insufficient to cover your expenses fully. UM coverage can help bridge the gap, covering the remaining costs the underinsured driver’s policy does not meet.

Now, let’s consider factors to help you determine whether you need uninsured motorist coverage:

  • State Requirements: Start by checking your state’s insurance requirements. Some states mandate UM coverage, while others make it optional. If it’s required, you must include it in your policy.

  • Existing Coverage: Review your existing auto insurance policy. If you already have comprehensive coverage, it might include uninsured motorist coverage. Verify this with your insurer to avoid duplicating coverage.

  • Budget: Consider your financial situation. While UM coverage can be invaluable, it comes at an additional cost. Assess whether the added expense aligns with your budget and risk tolerance.

  • Driving Habits: Think about your driving habits and where you drive most frequently. UM coverage becomes more valuable if you frequently drive in areas with a higher likelihood of uninsured or underinsured drivers.

  • Value of Your Assets: Evaluate the value of your assets, including your vehicle and savings. If you have substantial assets to protect, UM coverage can provide an extra layer of security.

When deciding whether to invest in UM coverage, consider factors such as state requirements, your existing coverage, budget, driving habits, and the value of your assets. Ultimately, UM coverage is a prudent choice for many drivers, as it provides an essential safety net in unpredictable situations on the road.