What if you are involved in an auto accident where it was the other person’s fault, however, they do not have insurance, or were the victim of a hit-and-run? If you are not equipped with uninsured motorist coverage, it will leave you with the whole bill for your vehicle repairs as well as medical expenses. It is in your best interest to secure coverage that is right for you and your lifestyle. If you are on the road a lot, uninsured motorist coverage may be a wise investment for you.

Uninsured Motorist Coverage Explained

An uninsured motorist policy will assist with covering medical expenses and repair costs when another driver that is not equipped with auto coverage causes an accident. This protection steps up when another party is at fault for the damages to your vehicle or physical and mental well-being but lacks an appropriate insurance policy that would have otherwise paid the bill. There are two main types of uninsured motorist coverage:

Uninsured motorist bodily injury coverage (UMBI)

This covers your medical bills, lost wages, pain and suffering after an accident, and those same protections for your passengers at the time of an accident. It is typically broken down into the per person and per accident limits. Depending on where you live, you might be able to combine limits into a single amount.

Uninsured motorist property damage coverage (UMPD)

Covers repair costs to your vehicle or other property after someone without insurance causes an accident. Depending upon where you live, this policy may also pay for hit-and-run accident damages.

Underinsured Motorist Coverage

It is important to understand the difference between uninsured and underinsured. Underinsured motorist coverage (UIM) pays medical bills for you and your passengers when the other driver is lacking in liability coverage, causing an accident. Therefore, if the other party with minimum insurance limits cannot fully pay for injuries they cause to you, this policy kicks in and has a per-person and per-accident limit. It generally does not pay for damages to your car. If the other party’s liability limits do not cover your car’s damage in total, you can seek compensation from your own collision coverage or take the other driver to court. Sometimes UM and UIM are paired together; other times they are sold separately.

Are you a Good Candidate for Uninsured Motorist Coverage?

Uninsured motorist insurance is pretty affordable compared to other types of coverage. Keep in mind that it is normal for the cost of uninsured motorist coverages. On average, uninsured motorist coverage costs much less than standard liability coverage. It would be wise to protect yourself with uninsured motorist coverage to have peace of mind on the road. Consider if it is worth it to you to add a little more on your premium to avoid finding yourself in a devastating financial situation. Getting into an accident with an uninsured driver is more likely than most people assume. Also, it is much too common for uninsured drivers to hit-and-run. Are you prepared to pay out-of-pocket for an expensive hospital bill or repair bill that was another driver’s fault? Uninsured motorist coverage could be your saving grace in this situation. Note that often underinsured or the state also requires uninsured motorist coverage.

 Why it is Important

Whether you are required to obtain uninsured motorist coverage or not, it would be a wise addition to your protection plan. Speak with a reputable insurance agent to discuss how this coverage may be right for you. Securing coverage that meets your needs should always be the goal. An insurer can provide you with the help you need to have peace of mind out there on the road.

About Thayer Innes and Freeman Bunting Insurance Agencies

At Thayer-Innes Insurance Agency and Freeman Bunting Insurance Agency, we strive to provide comprehensive insurance solutions to support Ann Arbor homeowners. Our homeowners’ policies can be tailored to meet your specific risk exposures and provides much more coverage than a traditional policy, giving you the peace of mind you deserve. For more information about our products, contact us today at (855) 395-6316.