Uninsured Motorist (UM) or Underinsured Motorist (UIM) coverage is an essential part of your auto insurance policy. Yes, it is optional and you can “reject” it in writing, but you’d be crazy to do this considering that an estimated one in five drivers in Texas may be driving around with no insurance at all, and millions more drivers have only the bare minimum of coverage.
How do UM and UIM coverages protect you? They step in to cover bodily injury and property damage if you get involved in an accident with a driver who either has no insurance, or whose insurance limits are less than the cost of the accident. Hit-and-run accidents – where the other driver flees the scene – would also be included in the UM/UIM part of your auto insurance policy.
So, why get UM/UIM? Here are 5 very good reasons:
- The number of uninsured motorists is increasing As insurance costs spiral ever higher, so too does the number of people willing to “chance it” and drive without insurance. This is especially true in large cities like Houston which have among the highest auto insurance premiums in the nation.
- The number of uninsured motorists may continue to rise Research has shown that the number of uninsured drivers is directly related to the strength of the economy. If we enter another recession, the numbers of people without insurance will increase, so you should be prepared for this well ahead of time.
- Minimum liability limits are too low Even if you already have UM/UIM coverage, if you have only the minimum 30/60/25 limits ($30,000 per person, $60,000 per accident, and $25,000 for property damage) you will likely have too little coverage under your policy to pay for a serious accident. Guess what happens if you run out of coverage? Yup, you are going to be paying the rest out of your own pocket, and those medical bills do not come cheap.
- Increasing your UM/UIM limits is not expensive It usually costs just a handful of dollars a month to upgrade from 30/60/25 to 100/300/100 or more – giving you a lot more coverage (and peace of mind) for very little additional cost.
- The chance of collecting money from an uninsured motorist is low Someone who is driving without insurance most likely has few assets, so pursuing a claim against them will likely to be an expensive waste of time, especially considering the legal fees involved.
The moral of the story? Speak to your agent at Memorial Insurance today to make sure the UM/UIM limits on your policy have you covered if the worst should happen!