Everyone's Favorite Driver - The Uninsured Motorist

The Uninsured Motorist portion of your auto policy is not a required coverage, and many people drop this coverage in an effort to save money. However, that is foolish, foolish, foolish. I will explain why.

Remember that the Bodily Injury Liability portion of your auto policy is for you to meet your liability obligations to the victim, if you cause an accident.

The reverse is also true. If another driver causes an accident, and you are the victim, then their Bodily Injury Liability coverage is supposed to meet their liability obligations to you.

?? But what if that driver has no auto insurance?

Some are “Riding Dirty”

Although every state requires drivers to have a basic auto policy consisting of Bodily Injury and Property Damage Liability to protect their victim in an auto accident, the reality is a sizeable segment of the population drive every day without any auto insurance coverage.

If one of these uninsured drivers are involved in an auto accident with you, and they are the at-fault driver; they have no coverage against which you can make a claim.

?? Go to Court, and Collect, What exactly?

Sure, if you were able to get the other driver’s information, you can go after them in court. But if they couldn’t afford to have a basic auto insurance in the first place, what is the likelihood that you will get financial restitution for your bodily injuries?

Do you have the money for a lawyer, time off from work, plus the mental fortitude to deal with a long drawn out and stressful legal process?

Further, what if it’s a hit-and-run driver?

So there you are, dealing with your injuries and medical expenses. The other driver is long gone. You did not have Uninsured Motorist coverage, so you cannot turn to your auto policy for relief. You are on your own, financially.

?? Is the lightbulb going off now?

Optional, but Oh, so Necessary

Uninsured motorist coverage is an optional coverage, designed for YOU - The Insured. It protects you from uninsured drivers and the havoc they may wreak.

????The driver may be a hit-and-run driver, or it may be a driver who stays on the scene and you were able to get his information. The bottom-line is, the other driver has NO insurance to take care of your injuries.

Let’s Get Down to Brass Tacks

If you are involved in an accident with an uninsured person, and they are at fault for the accident, you would turn to your Uninsured Motorist coverage to secure financial relief for your medical bills, and other expenses.

Yes, it is unfair for your to have to pay for insurance coverage to cover yourself, if someone causes you harm. However you cannot control what others do.

I would wager a bet that every single person over the age of 18 knows they are required to have auto insurance. They got a driver’s license, so they KNOW they are required to have auto insurance coverage.

Yet, millions of people drive without insurance every day. You cannot change that. What you can do is prepare for the possibility of being the unfortunate victim in an accident with an uninsured person.

Fooled by Shiny Pennies

If you are one of the drivers who have dropped Uninsured Motorist coverage to save on auto premiums, you might want to rethink that strategy.

The few dollars you saved on premiums by not having Uninsured Motorist coverage will seem unimportant at the point where you are the victim of a hit-and-run. The potential fallout from NOT having the coverage is huge.

Self-Insure to Save on Premium

If you drive an older car, you can choose to self-insure the car and drop the Comp & Collision because for an older vehicle, comprehensive and collision is pretty much useless.

To self-insure by dropping Comp & Collision on an older vehicle simply means, you save up the money, and have it sitting in an account to replace the car if it gets totaled. If you can afford a cuppa Joe daily, you can save to replace your car.

?????? Not Just About You, but Your family too

Legally, and morally, you provide coverage for others under the Bodily Injury and Liability coverage portion of your auto policy, in the event that you are the at fault party in an auto accident.

In the same vein, you must also look out for the best interest of yourself and your family, and you do that by having Uninsured Motorist coverage.

How Much Coverage

The Uninsured Motorist amount is usually offered at the same coverage amount as the Bodily Injury Liability coverage.

In most cases, the cost for coverage with one vehicle works out to be pennies per day, less than the cost for a daily cuppa Joe.

But Uncle cuppa Joe will not be paying for your medical expenses if you are the victim of a hit-and-run.

Idealism vs Reality

It would be ideal if every driver had auto insurance coverage. That is not the reality of the road.

The peace of mind of knowing if you got hit by an uninsured driver is more than worth pennies per day.

Drop uncle cuppa Joe, get Uninsured Motorist coverage instead.

UNINSURED MOTORIST PROPERTY DAMAGE aka UMPD

This is an optional coverage to repair or replace your vehicle, in the event you are hit by an at-fault uninsured driver, or hit-and-run driver.

If you have a newer vehicle which would cost over $10,000 to replace, this coverage is well worth having. The cost for this coverage is pennies.

Although regular vehicle prices have climbed to nosebleed levels, an Uninsured Motorist Property Damage liability limit of at least $100,000; may be adequate enough to compensate your for your damaged/totaled vehicle.

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Insurance agents speak "insurance?speak." ?An obscure bunch of gobbledygook language peculiar to the insurance industry. Often insurance agents understand in their mind what they are saying, but are unable to translate it into simple language for the consumer to understand. Your insurance agent is juggling many plates in the air as he writes new policies, while trying to help and answer questions from existing insureds. If your insurance rates have increased dramatically, you are unable to figure it out, and your insurance agent have not explained it in a way you can understand; I can audit your insurance coverages, advise where your premiums increased, and offer suggestions on how you may be able to secure a reduction in your premium. Reach out through LinkedIn!