Underinsured Motorist Coverage – What is it? Should I have it?
Steamboat Springs Attorney Sean Brown knows that car accidents can happen unexpectedly and can leave you with a lot of expenses, not only for medical bills and repair costs, but also for lost wages and other financial damages. It’s essential to have car insurance, and of course car insurance is required by law.
However, do you know about underinsured motorist coverage? This type of coverage can protect you financially if you’re involved in an accident where the at-fault driver is underinsured or uninsured. In this blog post, we’ll delve into the basics of underinsured motorist coverage – what it is, how it works, and if you should have it.
Importance of Underinsured Motorist Coverage
Underinsured motorist coverage (UIM) is a type of car insurance that provides additional protection in case you’re involved in a car accident where the at-fault driver is underinsured. Underinsured means that the other driver has insurance, but the policy limit is too low to cover all the damages. UIM covers expenses such as medical bills, lost wages, and other economic damages that you incur due to the accident. UIM can also provide coverage if you’re involved in a hit-and-run accident, where the other driver flees the scene or doesn’t have insurance.
UIM coverage is usually added as an endorsement to a car insurance policy, and the coverage limit can be matched to your liability coverage amount. Some states have mandatory UIM coverage, while others don’t require it. However, it’s still a wise choice to add UIM coverage to your policy if it’s not mandatory in your state, especially if you frequently drive on the highways or during busy traffic times.
The cost of UIM coverage depends on several factors such as your age, driving history, location, and the amount of coverage you want. However, the premiums for UIM coverage are usually less expensive than liability coverage, which pays for damages that you inflict on other drivers. Moreover, having UIM coverage can help you save a significant amount of money in case of an accident. Therefore, it’s important to consider the cost of UIM coverage versus the potential savings in the long run.
Another important factor to keep in mind when choosing UIM coverage is the coverage limit. The coverage limit is the maximum amount of money that your insurance provider will pay out if you’re involved in an accident. If the cost of damages exceeds your coverage limit, you’ll have to pay the remaining amount out of your pocket. Therefore, it’s important to choose a coverage limit based on your financial situation and the possible damages in case of an accident.
In conclusion, underinsured motorist coverage can provide you with additional protection and peace of mind in case of an accident where the other driver is underinsured or uninsured. It’s a wise choice to add UIM coverage to your policy, especially if you frequently drive on the highways or even in downtown Steamboat Springs where cars are almost parked in the road.
The cost of UIM coverage is usually less expensive than liability coverage, and the coverage limit can be matched to your liability coverage amount. However, it’s important to choose the coverage limit based on your financial situation and the possible damages in case of an accident. Stay safe on the road and stay insured!