With all the different factors that
enter into the automobile insurance purchasing process, it is important for you
to be well informed in order to make intelligent decisions. One such decision
concerns whether to purchase uninsured motorists (UM) and underinsured
motorists (UIM) coverage.
UM coverage provides insurance
protection for bodily injury, and in some states property damage, caused by a
motorist who is not insured. This coverage allows you to collect from your own
insurance company as if it provided liability coverage for the negligent and
uninsured driver. In contrast, UIM coverage provides insurance protection for
bodily injury, and in some states property damage, sustained by you when a
motorist who has liability insurance (but is still not sufficiently insured)
negligently causes an accident. The following list provides reasons why you
should procure UM/UIM coverage.
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The
chance of a negligent uninsured motorist hitting you is greater than you might
think. In some states, up to 26 percent of all drivers lack automobile
insurance. The countrywide average is 14 percent.
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UM
and UIM coverage is broad, since it provides benefits for you and your family
members' injuries sustained (a) in your own covered auto, (b) in autos you do
not own, and (c) as pedestrians.
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The
cost for this coverage is very reasonable, compared to liability coverage and
physical damage coverage for your own car. The increased costs for higher
UM/UIM limits are quite affordable for most people.
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If
your car is damaged by an uninsured driver, the deductible for UM property
damage, if available in your state, is normally only $250. This amount is often
considerably less than your collision coverage
