Uninsured motorist insurance (UM) is an essential yet often misunderstood auto insurance coverage that could save your family from financial ruin in the event of an auto accident.
If the at-fault driver who causes your serious injury has little or no insurance to compensate you, what are you going to do? A lawsuit might take years, be too expensive to pursue and ultimately net little or no financial recovery from that driver. With adequate UM insurance for yourself and your family, you would have your own insurance policy available to compensate you.
When reviewing this essential coverage, consider the following:
- Is the UM limit “stackable?” In some states, it’s easy to increase the limit of UM available through a process often referred to as “stacking.” For example, if you have two cars scheduled on your policy and your policy is stackable, you can collect up to twice your scheduled UM limit.
- Does the UM limit include underinsured motorist (UIM) coverage, or is this protection sold separately? For example, if the at-fault driver has liability insurance but its limit is not enough to cover the extent of your injuries, UIM coverage could kick in additional dollars.
- Does UM also cover property damage when an uninsured motorist damages your car or belongings inside it? In some states, UM can do this while, in other states, the coverage is only for bodily injury claims.
With the cost of medical care rising and the possibility that long-term care would be needed for recovery from an auto accident, protecting yourself and your family from loss costs caused by uninsured and underinsured drivers is essential. Consider adding this important coverage if you don’t already have it.
