Stay Covered, Stay Safe: Understanding Uninsured & Underinsured Motorist Insurance

When you're on the road, you trust that other drivers will have sufficient insurance to protect everyone in the event of an accident. However, uninsured and underinsured motorists remain a significant risk. In fact, one in eight drivers in the U.S. is uninsured, and many others have insufficient coverage to handle the full extent of an accident. This is where Uninsured Motorist Insurance (UMI) and Underinsured Motorist Insurance (UIM) come into play.
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These two types of coverage provide important protection if you’re involved in an accident with a driver who doesn’t have enough insurance—or any at all. In this blog, we’ll explore what UMI and UIM insurance are, how they work, and why adding them to your policy can keep you safe and financially protected on the road.

1. What is Uninsured Motorist Insurance (UMI)?
Uninsured Motorist Insurance is designed to protect you if you’re involved in an accident with someone who doesn’t have car insurance. Despite being legally required in most states, not all drivers carry sufficient insurance coverage, which leaves you vulnerable in the event of an accident.

How Uninsured Motorist Insurance Works

• ✔ If the at-fault driver does not have insurance, your UMI will cover your medical bills, lost wages, and property damage resulting from the accident.
  
  
• ✔ In some states, UMI also covers hit-and-run accidents, where the responsible party cannot be identified.
  
  
• ✔ UMI helps fill in the gap between your medical costs and property damage expenses that might not be covered by the other party's insurance, ensuring you won’t bear the full financial burden.

For instance, if you’re in an accident where the other driver is at fault but doesn’t have insurance, your uninsured motorist coverage would take over and pay for the expenses you incur, much like the other driver’s insurance would in a typical situation.

2. What is Underinsured Motorist Insurance (UIM)?
Underinsured Motorist Insurance is another type of coverage that kicks in when the at-fault driver’s insurance isn’t enough to cover the full cost of damages. Even if the driver has insurance, their coverage may not be adequate to pay for all your medical bills, property damage, or other expenses.

How Underinsured Motorist Insurance Works

• ✔ If you’re involved in an accident where the other driver is at fault, but their insurance coverage limits are too low to cover your expenses, UIM kicks in to pay the difference.
  
  
• ✔ For example, if the other driver’s insurance only covers $10,000 in damages, but your medical bills and repairs total $30,000, UIM insurance will cover the remaining $20,000.

UIM is an essential coverage to have because it protects you from drivers who may be insured but don’t have enough coverage to handle the full cost of an accident.

3. Why Do You Need Uninsured & Underinsured Motorist Insurance?
Both UMI and UIM insurance are designed to protect you when other drivers either don’t have enough insurance or no insurance at all. Here’s why you should consider adding these coverages to your auto insurance policy:

• Protect Yourself from the Financial Burden
  In the event of an accident with an uninsured or underinsured driver, without UMI or UIM, you would have to pay for your own medical bills and repair costs out-of-pocket, or rely on your health insurance or personal savings. These costs can quickly add up and may put you in financial jeopardy, especially if the accident results in severe injuries or substantial damage.
  
  
• Safeguard Your Health and Well-Being
  If you're seriously injured in a car accident, UMI and UIM provide the financial assistance needed for medical treatments, rehabilitation, and ongoing care, allowing you to recover without worrying about the cost.
  
  
• Added Peace of Mind
  Having UMI and UIM coverage gives you the peace of mind that you won’t be left financially stranded if you’re involved in an accident caused by a driver without enough coverage. This can be especially valuable in states with higher rates of uninsured or underinsured motorists.

4. How Much Does Uninsured & Underinsured Motorist Insurance Cost?
The cost of UMI and UIM coverage depends on several factors, including your location, driving record, the type of coverage you choose, and the amount of coverage you need. However, it’s generally quite affordable, especially when compared to the potential cost of an accident where you're left paying for everything out-of-pocket.

Factors That Affect the Cost of UMI and UIM

• ✔ State laws: Some states require UMI and UIM coverage, while in others, it’s optional. In required states, the premiums may be lower, as these coverages are standardized.
  
  
• ✔ Coverage limits: The higher your coverage limits, the higher your premiums will be. You’ll need to balance affordability with adequate protection.
  
  
• ✔ Your driving history: Clean driving records often result in lower premiums for UMI and UIM coverage.
  Generally, UMI and UIM cost around $10 to $20 per month, though rates will vary.

5. How to Add UMI & UIM to Your Auto Insurance Policy
Adding Uninsured Motorist Insurance and Underinsured Motorist Insurance to your policy is relatively easy. Here’s how to get started:

• A. Talk to Your Insurance Agent
  Reach out to your insurance provider or agent to discuss the best options for adding UMI and UIM to your policy. They will help you understand your state’s requirements and customize coverage based on your needs.
  
  
• B. Review Your Current Coverage
  If you already have auto insurance, take a moment to review your existing coverage. Ensure that you have the right amount of liability and comprehensive coverage, and that your UMI and UIM limits are sufficient to protect your finances.

Conclusion: Stay Covered, Stay Safe
Uninsured and underinsured motorist insurance are crucial components of a comprehensive auto insurance policy, offering protection against drivers who fail to meet insurance requirements. These coverages provide financial peace of mind and ensure that you’re not left shouldering the financial burden if an accident occurs with a driver who lacks proper insurance.

Key Takeaways:
✔ UMI and UIM coverage protects you from uninsured or inadequately insured drivers, covering medical bills and property damage.
✔ These coverages are affordable and offer vital protection against financial hardship.
✔ Adding UMI and UIM to your auto insurance policy helps you stay safe and secure, even in the event of an accident caused by someone else’s negligence.

​At Insurance Agency Network, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get insurance that fits your needs. You can get more information about our products and services by calling our agency at (425) 448-9190. Get your free quote today by CLICKING HERE.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.