Uninsured Motorist (UM) and Underinsured Motorist Insurance (UIM) are often the most under-appreciated and misunderstood forms of insurance available to consumers.
I recall as a child, an uncle who had worked for an insurance agency declared to my parents that Uninsured Motorist (UM) and Underinsured Motorist (UIM) insurance coverage were a complete waste of money. I know that we are supposed respect our elders, but I must respectfully disagree with my uncle. Let me explain why.
An Uninsured Motorist is defined as any driver who did not have any insurance at all, had insurance that did not meet the state-mandated minimum liability requirements, or whose insurance company denied the claim to the insured motorist, and the driver was financially unable to pay for medical expenses or damages on their own.
According to the Insurance Research Council, the estimated number of uninsured drivers may reach as high as 25% of the drivers on the road today, across the United States.
Underinsured Motorist refers to a motorist, who had the state mandated minimum liability insurance and was at fault, but their insurance policy will not provide enough coverage to cover the full bodily injury costs or property damages of everyone involved in the accident.
Under the umbrella of UM and UIM insurance, you will find two different options: Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD). While it is possible to purchase UMBI insurance separate from UMPD insurance, you will not be able to purchase UMPD insurance without also purchasing UMBI insurance.
UMBI insurance will pay for injuries to you or your passengers, when there is an accident that is the other person’s fault and the person-at-fault is either uninsured or underinsured. A hit-and-run driver is also considered to be an uninsured motorist, as it relates to bodily injury and UMBI insurance.
UMPD insurance will pay for property damages to your vehicle, when the party-at-fault has no insurance or not enough insurance to cover your property damage repair or replacement expenses.
When purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) insurance coverage, be sure to verify whether it also covers UMPD expenses and the level of coverage offered with the plan. The standard uninsured motorist insurance package will vary from company to company. So ask for specifics about the uninsured motorist insurance package that is being offered to you.
Insurance agents, with most auto insurance companies, are required to make a consumer sign documentation that affirms the consumer’s rejection of Uninsured Motorist Insurance Coverage. This provides a measure of protection to the insurance company, when the consumer realizes that his or her normal insurance policy will not cover bodily injury or property damage, when the fault for the accident is the result of the uninsured or underinsured motorist.
With up to 25% of the motorists on our roads being either uninsured or underinsured, the chances of being involved in a collision with an uninsured or underinsured motorist is 1-in-4.
Consumer advocates suggest that the average person will be involved in at least one traffic accident during the course of his or her lifetime. So the day will likely come that you will be involved in a traffic accident.
According to the National Highway Traffic Safety Administration, there were more than 6 million auto accidents on American roads during 2009. For those of you who have not really thought about it, that means that there was one traffic accident in the U.S. during 2009, for every 50 residents of the United States.
Another statistic worth noting is that nearly 34,000 people were killed in traffic accidents during 2009, in the United States.
I don’t know about you, but I would prefer to do my gambling in a casino, where I can have absolute control over how much money I am willing to lose. I certainly don’t want to gamble with my personal finances, while I am behind the wheel of my car, by assuming that the guy in the next car has the liability insurance that he is required to have. With a 1-in-4 chance of coming out on the short end of the stick in a traffic accident, personally I think that those kinds of odds are just too high to risk saving a few dollars by rejecting Uninsured Motorist Insurance Coverage.
As for you, that is your choice… You can choose to reject Uninsured Motorist Insurance Coverage to save a few bucks on your insurance premium or not…
This article published here.
…
When comparing auto insurance quotes, be certain that you are always comparing apples-to-apples. When you understand what your auto insurance quote covers, you can make an educated decision about which auto insurance company is offering you the best value for your money. You can get auto insurance quotes from several local agents at: http://maxroo.com/updates/auto-insurance-quotes/ Oklahoma residents can get quotes and find insurance agent phone numbers at: http://CheapOklahomaAutoInsurance.com/ Written by Quinton Becker.
Read more articles written by Quinton Becker
Related posts:
- Reduce Your Monthly Budget By Eliminating Duplicate Insurance Coverage
There’s absolutely no sense in paying for the same insurance coverage from multiple insurance companies. This is an area where a lot of consumers could eliminate some unnecessary spending from their family budget. The two main areas to look for duplicate coverage is medical coverage and road assistance plans. About... - Understanding the State-Mandated Minimum Auto Liability Insurance
It has been estimated that as many as 15% of all drivers on the road in the United States do not have liability insurance for their vehicle. Of course, that estimation does not take into account drivers in New Hampshire and Wisconsin, who in previous years were not required by... - Learn About Short Term Insurance
From expensive but extensive policies to cheap and inadequate coverage plans, insurance companies make it certain that they don’t discriminate. One option many insurers provide is short term insurance, coverage that protects you much like a standard policy would but only for a short period of time. You are able... - Surprising Ways You Can Get Lower Auto Insurance Quotes
Auto insurance is mandatory by law in most states, but insurance can be expensive, especially during the current economy. As a consumer, it’s always a smart idea to seek assistance from an impartial third party Insurance Quotes site and let the insurance companies earn your business. Shopping around for insurance... - Ten Tips: When You Lose Your Health Insurance
Here are ten tips you can implement when you lose your health insurance: 1. You may be offered a “COBRA” insurance policy, especially if your job has been lost. This enables you to gain easier acceptance, but doesn’t necessarily provide the best rate or coverage available. 2. When your doctor... - Hedge Your Bets With Job Loss Protection Insurance
Although it is easy to think that you are immune from the depressing economy because you consider your job to be secure, you really can never predict the future. Hundreds of thousands of recently laid-off workers across the country thought the same thing and now find themselves unemployed with bills... - Understanding Personal Injury Law and Knowing When You Need a Personal Injury Lawyer
When in an accident caused by someone else’s carelessness or deliberate actions, one of the first thoughts that goes through most people’s minds after the panic and relief subsides, is whether they should seek out a personal injury lawyer. It’s an understandable thought – one that could be acted upon,... - Understanding the Maintenance, Repair and Replacement of Ball Joints
A ball joint is an important component of your car’s suspension, located on the front end of the vehicle. Ball joints will wear out over time and cause handling problems as they continue to deteriorate. It is important that you have these joints inspected, particularly if you are experiencing handling... - Understanding The Due On Sale Clause On Your Home Mortgage
The “Due On Sale Clause” is among the most frequently misunderstood and most-feared legal terms in American contractual law. In this article, we are going to take a look at what it is, what it is not, and how to avoid violating it. What Is The Due On Sale Clause?... - Understanding The Challenges Of The Link Building Game
Many webmasters who have been following the discussions about Google’s dislike of paid links have been confused about what constitutes bad links and good links, in the eyes of the search engine companies. In this article, I will seek to answer many of the questions people have on this topic.... - Video Podcasting Understanding RSS
Since both podcasts and video blogs depend on RSS for their success, it is important that you have a clear understanding of what RSS is, and how it works. RSS stands for Really Simple Syndication, or Rich Site Summary, or RDF Site Summary – whichever you choose. As you can... - Understanding Your 401(k), IRA and Other Pre-Tax Investments
Yes, the values of various stock are falling every day and the media can not make up its collective mind if we are coming out of the recession or if there is still a long road ahead. What does all of this mean to you, the average investor. Well, if... - Understanding Your Telecom Bill
For most business owners, just looking at your phone bill can cause panic or dread. Instead of checking line by line for accuracy in the invoice, you probably look at the total, sigh, and write a check. With all the new services available, you need to understand your invoice so... - Understanding Connotations in Tag Lines, Business Names and Monikers
The following closer on an email was meant to clinch my interest in an information product, but it did the opposite: “I would love for you to experience the same kind of worldwide notoriety my clients have enjoyed for years.” As a professional word person, I knew instantly that this... - Understanding Compulsive Gambling
People gamble for many reasons. Some do it for the pure thrill and fun of it, and others just because they’re feeling lucky, and many do it out of habit. There are some people who gamble as a way to relax, socialize or just escape from everyday lives. Whatever the...