Should You Buy Uninsured Or Underinsured Motorist Coverage?

Although every driver is expected to carry auto insurance coverage, many people still drive without this requirement. There are also those who do have coverage, but they their limits are terribly low. This is why insurance companies offer uninsured and underinsured motorist coverage (UM and UIM). While UM/UIM coverage is not mandatory, you should consider buying it if you experience any of the following. 

Your State Has Many Uninsured Drivers

Statistics show that some states have more uninsured motorists than others. It makes sense that, in such states, your risk of getting in an accident with an uninsured driver is higher than in other states In some states, over 20% of all motor insurance claims are uninsured motorist claims. Therefore, you should consider buying UM/UIM motorist coverage in such states to protect you from such drivers.

Your State Has Low Liability Limits 

Different states have different minimum limits for liability coverage, and some of them seem inadequate. If you live in a state with relatively low liability minimums, then you should consider buying UM/UIM coverage. This is because you have a high risk of getting hit by a driver with low liability coverage limits who may not be able to pay for all your damages.

You Live or Work In an Area with High Accident Rates

The higher your risk of getting involved in an accident, the higher your risk of getting injured by a motorist without coverage or with inadequate coverage. For example, the risk of getting hit by an uninsured or underinsured motorist is high if there are fifty accidents in your neighborhood every year than if the neighborhood only witnesses ten accidents annually. Therefore, consider buying UIM/UM coverage if your risk of an accident is high.

The Coverage Is Mandatory In Your State

You may not have a choice on whether or not to buy UIM/UM coverage depending on your state. Some states have made it mandatory for all motorists to have UIM/UM coverage. In such states, you will be driving without adequate insurance (and this is illegal) if you don't have UIM/UM coverage.

You Place a Premium on Full Insurance Coverage

Lastly, you should also buy UIM/UM coverage if you value insurance coverage and want to be protected at all costs. There are people who want car insurance coverage for all risks they may face on the road and never want to make out-of-pocket payments for road-related losses. If you are such a person, then buying UIM/UM coverage is one of the steps to take towards full protection.


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