Why you must have uninsured motorist insurance

Why Do You Need Uninsured Motorist Coverage?

While we all hope for safe roads, accidents involving uninsured or underinsured drivers happen more often than we’d like. Imagine this scenario: you’re cycling down the street when suddenly, a driver with no insurance hits you, leaving you with severe injuries. Or worse yet, what if the driver only has the bare minimum liability coverage—say, just $10,000—which won’t come close to covering your medical bills? And let’s not forget about hit-and-runs, where the responsible party can’t even be identified.

In situations like these, uninsured motorist (UM) coverage can be a lifesaver. Your UM policy steps in to cover your medical expenses and other damages that go beyond what the at-fault driver’s insurance can pay. It’s there to help protect you when others fail to take responsibility for their actions—or lack thereof.

How Does It Work?

Let’s break it down with an example. Suppose you’ve got $100,000 in UM coverage on your auto policy, and you get injured in an accident caused by a driver who only has $10,000 in bodily injury liability insurance. You’d first receive $10,000 from the at-fault driver’s policy. Then, you could turn to your own auto insurance for the remaining $90,000 needed to cover your injuries. Essentially, your UM coverage fills in the gaps left by the other driver’s insufficient insurance.

But here’s something important to keep in mind: if your UM policy limit is lower—say, only $10,000—you won’t be able to make a claim for the excess amount. This is because UM claims can’t combine with another policy to reach higher limits. Fortunately, making a UM claim doesn’t affect your car insurance premiums since the purpose of UM coverage is to shield you from the consequences of another driver’s negligence.

Even better, UM insurance isn’t costly compared to other types of coverage. Velosurance strongly suggests opting for the highest UM limits you can afford, especially since it could end up being your sole source of financial support after an accident. Interestingly, in some states, you don’t even need to own a car to benefit from UM insurance—as long as you’re a resident of the same household and listed as an additional insured under a family member’s or roommate’s auto policy that includes UM coverage.

To file a claim under your UM insurance, certain conditions must be met:

• You must have been physically touched by the vehicle.
• The driver must be deemed at fault for the collision.
• A police report documenting the incident must exist.

Remember, accidents happen unexpectedly, and being prepared can make all the difference. Investing in proper UM coverage ensures peace of mind knowing you’ll be protected when the unexpected occurs.