Uninsured motorists (UM) coverage provides insurance protection for bodily injury, and in some states property damage, caused by a motorist who is not insured. This coverage allows you to collect from your own insurance company as if it provided liability coverage for the negligent and uninsured driver. In contrast, underinsured motorists (UIM) coverage provides insurance protection for bodily injury, and in some states property damage, sustained by you when a mo-torist who is not sufficiently insured negligently causes an accident. The following list provides reasons why you should buy UM/UIM coverage.
1. The chance of a negligent uninsured motorist hitting you is greater than you might think. In some states, up to 32 percent of all drivers lack automobile insurance. The countrywide average is 14 percent.
2. UM and UIM coverage is broad, since it provides benefits for you and your family members’ injuries sustained (a) in your own covered auto, (b) in autos you do not own, and (c) as pedestrians.
3. The cost for this coverage is very reasonable, compared to liability coverage and physical damage coverage for your own car. The increased costs for higher UM/UIM limits are quite affordable for most people.
4. If your car is damaged by an uninsured driver, the deductible for UM property damage, if available in your state, is normally only $250. This amount is often considerably less than your collision coverage deductible.
Source: International Risk Management Institute, Inc.