When it comes to auto insurance, many drivers focus on coverage for their own vehicles. At Insurance Coverage of Texas, we believe it’s equally important to consider protection from drivers who are either uninsured or underinsured. In this blog post, we will explore the significance of underinsured/uninsured motorists (UM/UIM) coverage, why it matters, and how it can provide an essential safety net for drivers.
Understanding Underinsured/Uninsured Motorist Coverage
Underinsured/uninsured motorists coverage is an insurance option designed to protect you if you’re involved in an accident with a driver who doesn’t have sufficient insurance coverage or has no insurance at all. It steps in to compensate you for medical expenses, lost wages, and other damages that the at-fault driver’s insurance would typically cover. This coverage ensures that you have an additional layer of protection beyond what the at-fault driver’s insurance can provide.
The Risks of Uninsured Drivers
Despite legal requirements, a significant number of drivers on the road do not carry auto insurance. A study done by the Insurance Information Institute found that 8.3% of Texas motorists were recorded as uninsured in the year 2019. If you’re involved in an accident with an uninsured driver, you could be left responsible for all the expenses associated with the accident, including medical bills and property damage repairs. Uninsured drivers pose a considerable risk as they lack the financial means to cover the costs of an accident, leaving innocent victims in a vulnerable position.
Legal Requirements and Availability
While underinsured/uninsured motorists coverage is not required in all jurisdictions, it is mandated in some states. Even in states where it’s not mandatory, insurance companies are usually required to offer this coverage to policyholders. However, you can choose to decline it in writing if you prefer not to include it in your policy. It’s important to review the insurance laws and regulations specific to your state to understand the requirements and options available to you.
The Cost of UM/UIM Coverage
Adding underinsured/uninsured motorists coverage to your auto insurance policy may come with an additional cost. However, the benefits and peace of mind it provides often outweigh the extra premium. Consider the potential expenses you could face in an accident with an uninsured or underinsured driver – medical bills, vehicle repairs, and lost income – and weigh that against the cost of the coverage. In any case, consult with your insurance agent to determine the best plan for you.