Outside of defensive driving, there’s not much you can do to prevent a car crash caused by someone else’s recklessness. However, there is a lot you can do to protect yourself from the consequences of being hit by an uninsured or underinsured motorist.
How can I protect myself from an uninsured motorist or underinsured driver?
There are options to keep you and your family safe.
Read the declarations page
The first thing you can do is to find and read the declarations page (sometimes referred to as a “dec page”) of your family’s automobile insurance policy. The declarations page is often found at the very beginning. It has the name of the insurance company at the top, your name and address as the insured, and a listing of all the vehicles insured by the policy. Near each vehicle listed, you will find the coverage provided by the policy.
Liability coverage: do the math
The next thing to do is to determine whether you have sufficient limits of insurance coverage on your policy. The two basic coverages on every policy are liability coverage and uninsured/underinsured coverage. Liability coverage, usually listed in an amount such as 30/60, 60/100, or 100/300. This means that if you are at fault and hit someone, the company will pay up to these limit amounts, multiplied by $1000.
For example, 30/60 means that your insurance company will pay up to $30,000 for any one person injured in the accident, and up to $60,000 total for all persons injured in one crash. 30/60 is the minimum limit required by Virginia law and the minimum you can have. That being said, $30,000 does not go very far when one considers the cost of medical care.
Uninsured & underinsured motorist coverage: do the math
The other required coverage is uninsured motorist and underinsured motorist coverage (UM/UIM). Your insurance company must provide UM/UIM limits equal to the liability limits, unless you choose lower UM/UIM limits.
This is not recommended. UM/UIM coverage is all that stands between you and possible financial disaster if you or a family member are seriously hurt in a car crash.UM/UIM coverage obligates your company to step in and provide insurance up to your UM/UIM policy limits if the other driver who causes injury has no insurance or has a lower limit than you do. UM/UIM coverage supports every member of your household even if you or another member is hurt as a passenger in someone else’s car.
So look at your UM/UIM coverage. What if you were badly hurt in a crash and couldn’t work for several months? Is the amount of your UM/UIM coverage adequate to compensate you for your injuries and losses? If not, call your agent and ask about increasing the limits. The cost of additional coverage is surprisingly little, when you consider the possibility of an out-of-control driver that may not be insured.
Common misconceptions about uninsured and underinsured motorist coverage
Plenty of myths and misunderstandings prevent people from fully protecting themselves when it comes to uninsured and underinsured motorist (UM/UIM) coverage. Below, we clear up some of the most common misconceptions.
Myth One: “I’m a careful driver, so I don’t need UM/UIM coverage.”
Reality: Being a responsible driver can’t protect you from others’ recklessness. Even if you have a flawless driving record, you could still be hit by someone who doesn’t have insurance or doesn’t have enough coverage. UM/UIM coverage ensures you’re financially protected in case of injuries, lost wages, or other expenses caused by an uninsured or underinsured driver.
Myth Two: “My health insurance covers everything if I’m injured in a car crash.”
Reality: Health insurance might cover medical bills, but it won’t help with other significant expenses like lost wages, ongoing therapy, or pain and suffering. Additionally, many health insurance plans have high deductibles or co-pays. UM/UIM coverage fills these gaps by providing compensation for a broader range of damages following an accident.
Myth Three: “Uninsured and underinsured motorist coverage is too expensive.”
Reality: Surprisingly, increasing your UM/UIM coverage limits is often relatively affordable. The cost is generally much lower compared to the financial devastation you could face if you’re seriously injured by an uninsured driver. Skipping this coverage to save a few dollars now can cost thousands later. It’s a small price to pay for peace of mind.
By understanding these myths and the truth behind them, you can make informed choices to better protect yourself and your loved ones. Don’t take unnecessary risks—invest in adequate UM/UIM coverage to avoid financial hardship down the line.
State-specific requirements for uninsured and underinsured motorist coverage
Uninsured and underinsured motorist (UM/UIM) coverage requirements can vary significantly depending on the state you live in.
While some states mandate this coverage, others leave it optional. Understanding these differences helps ensure you’re adequately protected as a driver.
States that require UM/UIM coverage
Many states recognize the importance of UM/UIM coverage to protect drivers and make it a legal requirement. For example:
- Connecticut requires drivers to carry UM/UIM coverage matching their liability limits to ensure adequate protection.
- Maryland mandates uninsured motorist coverage with limits of at least $30,000 for bodily injury per person and $60,000 per accident. However, drivers can opt for additional coverage if deemed necessary.
By law, drivers in these states must have a safety net, ensuring financial security in case they’re hit by an uninsured or underinsured driver.
States where UM/UIM coverage is optional
Other states, like Virginia and South Carolina, provide more flexibility by allowing drivers to choose if they want to include UM/UIM coverage in their policies. However, many drivers in these states risk exposure to financial hardship in accidents caused by uninsured drivers if they decide to skip this optional coverage.
Without mandatory UM/UIM coverage, you must make an informed decision about your policy limits to avoid unnecessary vulnerabilities.
States with unique considerations
Some states take a hybrid approach. For example:
- Florida does not require UM/UIM coverage, but insurance providers must offer it. Drivers need to either purchase the coverage or reject it in writing.
- California offers UM property damage coverage as an add-on to liability coverage, which is a less common option in most other states.
How these differences impact drivers
The variability in state laws means drivers need to be proactive. If you’re moving to a new state, take time to review its specific insurance requirements and adjust your policy accordingly. Additionally, for those traveling across states frequently, understanding what your home policy covers can help you avoid unexpected gaps in protection.
To make sure you’re fully protected, consider having UM/UIM coverage even if it’s not mandated in your state. Peace of mind often outweighs the modest increase in premiums, especially when dealing with unpredictable drivers on the road.
Cost-benefit analysis of increasing UM/UIM coverage limits
When considering whether to increase your uninsured/underinsured motorist (UM/UIM) coverage, you should weigh the potential costs against the significant financial risks of being underinsured. Let’s break it down.
The costs of higher premiums
Increasing your UM/UIM coverage limits will lead to a slight increase in your insurance premiums. On average, raising these limits might add a few dollars to your monthly or annual payment. For example:
- A driver with a basic 30/60 policy might pay $10–$20 more per month to increase their coverage to 100/300.
- For the added premium, you could receive tens of thousands—or even hundreds of thousands—of additional coverage, depending on your policy and the state you live in.
While this cost isn’t negligible, it’s minor in comparison to the potential consequences of having insufficient coverage.
The financial risks of being underinsured
Now, consider the flip side of the equation—what happens if you’re seriously injured in an accident caused by an uninsured or underinsured driver and have insufficient coverage. You could face:
- Medical expenses: Severe injuries can cost tens or hundreds of thousands of dollars in medical bills. If your UM/UIM coverage doesn’t cover the full amount, you may have to pay out-of-pocket.
- Lost wages: Recovery can mean weeks or even months away from work. Without adequate coverage, you might not receive compensation for this loss.
- Pain and suffering: UM/UIM coverage can also provide for non-economic damages like pain and suffering. Low coverage limits may leave you without the full compensation you deserve.
- Ongoing care: Long-term injuries may require physical therapy, rehabilitation, or even lifelong care, which insurance with low limits may fail to address.
For instance, a policy with a $30,000 limit may not cover the full costs of a catastrophic accident, leaving you to shoulder what could easily be six figures in expenses.
Why the benefits often outweigh the costs
By increasing your UM/UIM limits, you significantly expand your financial safety net without a substantial increase in premiums.
This small investment can protect you from devastating financial outcomes, especially when you consider how unpredictable other drivers can be. For most, the peace of mind that comes with knowing you’ll be covered in nearly any situation is well worth it.
Ultimately, choosing higher UM/UIM limits is about ensuring your future stability. A few extra dollars a month could save you thousands when you need it most.
Frequently asked questions about uninsured and underinsured motorist coverage
What is uninsured motorist coverage?
Uninsured motorist (UM) coverage protects you financially if you’re in an accident caused by a driver who doesn’t have insurance. It covers costs like medical expenses, lost wages, and damages, ensuring you’re not stuck paying out of pocket.
What is underinsured motorist coverage?
Underinsured motorist (UIM) coverage helps when the at-fault driver’s insurance isn’t enough to cover all your expenses. For example, if your medical bills exceed their policy limits, your UIM coverage will step in to pay the difference, up to your policy’s limits.
Does UM/UIM coverage also cover passengers?
Yes, UM/UIM coverage generally extends to passengers in your vehicle at the time of the accident. It may also cover household members if they’re injured in a car accident, even as passengers in someone else’s vehicle.
How much UM/UIM coverage should I get?
A good rule of thumb is to match your UM/UIM coverage limits to your liability coverage limits. Think about factors like medical costs, potential loss of income, and other expenses when determining the right amount for your needs. Speak with your insurance agent to review your options and ensure you’re adequately protected.
Are you dealing with a bodily injury after an uninsured driver hit you? We can help
If you or a loved one have been hurt in an accident due to another’s negligence, you may be entitled to compensation. Call the car accident lawyers at Allen & Allen today for a free case evaluation, at 866-388-1307.
