Articles

What Happens When Motorists Don’t Have Insurance?

In our last post, we shared an an overview of what Uninsured/Underinsured Motorist Coverage (UM/UIM) is and why you should have it in your auto policy. Another staggering fact is that despite efforts by states to curb the number of uninsured motorists on the roads, the Insurance Research Councilfound 12.6 percent of drivers nationwide were driving without coverage in 2012, the last year for which data is available. All told, 29.7 million people were driving uninsured during that year nationwide. How Much Coverage do you Need? As a result, we recommend primary policy limits of at least $300,000 per person and $500,000 per accident, and an excess policy above that which provides at least $1 Million in additional coverage for UM/UIM. To obtain such, the insurer must offer this level of coverage and you must purchase the same amount of liability insurance coverage as you purchase for this UM/UIM insurance. Making a Claim There are certain requirements in making a…

The Importance of Having Uninsured and Underinsured Motorist Coverage

Uninsured Motorist and Underinsured Motorist Coverage (UM/UIM) is available as additional insurance coverage in your auto policy. Many overlook or don’t understand the importance of this coverage. What is this coverage? It is purchased as part of your vehicle coverage. It is a separate type of insurance that protects you, the occupants of your vehicle, and others who are family members living with you, from being injured by a negligent motorist who is driving without or with insufficient insurance coverage on that vehicle to pay for the injuries caused. Why is it valuable? If the negligent driver injures you or someone in your car, and has no insurance, then your insurance company steps in as if it was the insurer of that negligent driver and your policy then provides funds to pay for that wrongdoing. This is uninsured motorist protection. Underinsured protection is different. It protects you and your passengers from the negligent driver who does not…