Uninsured & Underinsured Motorist Coverage

Uninsured & Underinsured Motorist Coverage protects you financially if you’re in an accident with someone who’s found at fault and either has no insurance or insufficient insurance.

Uninsured & Underinsured Motor Coverage 101

Even though most people lump uninsured and underinsured motorist coverage together, they actually do two separate things.

Uninsured Motorist insurance (UM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who is uninsured. UM insurance also protects you and your passengers if struck by a hit-and-run driver.

Underinsured Motorist insurance (UIM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who has too little insurance to cover all of the injuries.

Covered UM & UIM expenses for you and your passengers include:

  • Medical bills
  • Lost wages
  • Pain and suffering

What’s the Right Amount of Coverage to Carry?

The short answer is that there’s no one perfect answer. Some drivers follow an easy rule of thumb and carry uninsured and underinsured motorist coverage equal to their bodily injury liability limit. But since coverage can range from $20,000 to $1 million or more, the “right amount” depends on your assets and risk tolerance.

It’s important to remember that your insurance company generally prohibits purchasing uninsured and underinsured motorist coverage in amounts higher than your liability coverage.

And keep in mind that sometimes a driver can become underinsured just by driving across state lines. Your state, for example, may have a minimum liability amount that’s much higher than a neighboring state. Generally, though, if a driver goes from one state into another where the Financial Responsibility (FR) limits are higher, most policies have an “Out of State Insurance” provision which increases the limits on their policy up to the FR limits of the state. You may want to check your coverages before taking any out-of-state trips.


Your best choice for insurance

The first right decision in protecting all of your assets is finding an insurance agent who understands YOU and your family. We pride ourselves in taking the time to discuss your needs to ensure that you don’t find a gap in coverage when you need it most…something that can’t always be done in 15 minutes and is too important to rush. Make sure you and your family are fully protected and call us at 407-977-5700 or email any time at robert@wurzelagency.com.

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