What is Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage?

Auto

Those of us who live in California face exposure to potential accidents with uninsured and underinsured motorists every day we drive. Therefore, this coverage is important. If you are involved in a car accident and the accident is the fault of the other party, this coverage under your policy would increase if the other party is uninsured or their policy limits are not adequate to pay for your injuries and the damaged vehicle. .

There seems to be a lot of confusion about what this coverage covers, so here are some tips to understand why you need to have adequate limits to be properly insured.

Purchase limits that match your policy’s bodily injury (BI) limits. Bodily injury coverage pays for another party’s injuries when you are at fault in an accident. If the other party is at fault and is involved in an accident with you and has no insurance or inadequate limits, you will need to take care of yourself. That’s why you need UM/UIM coverage.

Buy the highest limits you can afford. Medical expenses are extremely high. Accidents can easily involve payments of millions of dollars and more.

Medical expenses are only part of the included coverage. Many people think that if they have great health insurance, they have no real need for it. Health insurance may have high deductibles and will not modify your home to accommodate you if you are now in a wheelchair due to a car accident. You will not pay for essential services that you were once able to perform, such as taking out the garbage, etc. UM/UIM coverage will pay for this up to the limits you purchase.

The Waiver of the Collision Deductible (WCD) and/or Uninsured Motorist Property Damage (UMPD) must also be purchased. If the vehicles you are insuring are insured with “collision” coverage, for a very small premium, WCD will waive the deductible on repairs to your vehicle involved in an accident with an uninsured or underinsured driver. That way, you will not have any out-of-pocket costs associated with this accident that was not your fault. If your vehicle does not have collision coverage because the vehicle is older or has a lower value, the UMPD purchase allows up to $3,500 to repair or replace that car.

The state of California only requires minimum limits of $15,000 per person and $30,000 per accident for bodily injury liability and $5,000 for property damage. If someone buys these limits, they can sign up and drive your car. These are the same requirements that were established more than 40 years ago. $5,000 won’t replace many bumpers today. Unfortunately, many people are unaware of the need to protect their assets and/or future wages. The probability of being involved in a car accident with someone who does not have enough insurance is very real.

The truth is, buying much better coverage can be extremely affordable and profitable. Don’t settle for the same coverage you’ve had for possibly years. Your coverage must keep up with the changes in your life. Get coverage advice from a knowledgeable insurance agent who is willing to put your needs first, not just sell you a policy. Here’s to truly happy motoring!

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