Uninsured Motorist Insurance and Underinsured Motorist Insurance

Simply put, uninsured motorist insurance (UM) is a type of car insurance that gives you a level of protection against drivers who don’t have liability insurance. In the U.S., almost one in eight drivers do not have car insurance. As a driver, you should find that number alarming because if you are involved in an accident caused by a driver with no insurance, you may find yourself with injuries and damages and no way to pay for them.

In most states, whoever caused an accident is responsible – or their insurance is – for the injuries and damages of the other people involved. If they don’t have car insurance, you can sue them but that isn’t going to help in the short term. If a driver who caused an accident leaves the scene before you can get their information, uninsured motorist coverage will help you pay for your injuries and damages up to your policy limits.

At Freeway Insurance, we have uninsured motorist insurance options that can help you plug that gap in liability insurance if you are involved in an accident with an uninsured driver.

Underinsured motorist coverage (UIM) protects you against drivers who have liability insurance and it does not include enough coverage to pay for the injuries and property damages they cause when they are at fault in an accident. You may not know it, but you could actually be one of the underinsured. If you have only the state-required minimum car insurance and you are found to be at fault in a crash, your insurance levels may not cover all the injuries and damages sustained by other drivers and their passengers. In that case, the remainder comes out of your pocket. And in at-fault states, your insurance isn’t going to help you recover financially at all. All of your expenses will come out of your pocket.

Your underinsured motorist coverage will kick in after the at-fault driver’s insurance has been exhausted. In no-fault states, your insurance will pay for your injuries and damages no matter who caused the wreck.

Many drivers choose to add more protections to their liability insurance in order to make sure their expenses after an accident are covered. Our Freeway Insurance agents can help you decide the amount of coverage that best fits you and your budget.

Uninsured motorist coverage protects you when you are in an accident with an at-fault driver who has no auto liability insurance at all and includes drivers who flee the scene of an accident without leaving their information (hit and run).

Underinsured motorist coverage kicks in once the liability insurance of the at-fault driver is exhausted. In many cases, state minimum liability insurance requirements simply aren’t enough when up against today’s costs for medical care and automobile repair.

All drivers should seriously consider this protection whether it is required or not. It doesn’t cost much for the peace of mind it provides.

Drivers purchase underinsured/uninsured motorist insurance and if they are involved in a wreck caused by an uninsured or underinsured driver, their own insurance company will provide financial aid up to their policy limits. So, for example, if you choose to add $25,000 worth of UIM coverage, and your deductible is $500, the insurance company will kick in $24,500 to help pay for your damages and medical bills – and those of your passengers.

Some states have realized that requiring some level of underinsured/uninsured motorist (UM) coverage protects their drivers in the event of a crash – or a hit and run. Drivers in those state pay for UIM insurance whether they want to or not. Other states require insurance companies to offer UM insurance as part of the minimum coverage package, but drivers can opt out.