We’ve all been there: sitting in traffic, looking at the car next to us, and wondering, “Do they actually know how to drive?” But the more important question you should be asking is: “Do they actually have insurance?”
While most states require drivers to carry liability insurance, the reality is that millions of people are hitting the road without it. If one of those drivers hits you, your standard policy might leave you footing the bill for a mess you didn’t create.
That’s where Underinsured Motorist (UIM) Coverage comes in. Here is why it’s one of the most important parts of your policy.
1. It Protects Your Wallet from the “Uninsured Gap”
If an underinsured driver hits you, they likely don’t have the personal assets to pay for your car repairs or medical bills. Without UIM coverage, you might be forced to pay your own high deductibles—or worse, cover the entire cost out of pocket. UM coverage steps in to act as the insurance the other person should have had.
2. Medical Bills Are Expensive
A major accident can result in ER visits, surgery, and physical therapy. Even if you have good health insurance, you may still face:
- High copays and deductibles.
- Lost wages from missing work.
- Pain and suffering damages.
UIM coverage often includes Underinsured Motorist Bodily Injury, which helps cover these specific costs for you and your passengers.
3. Protection Against Hit-and-Runs
There is nothing more frustrating than a “phantom driver” who clips your car and speeds off before you can grab a license plate number. In many states, a hit-and-run is treated the same as an accident with an underinsured driver. Having UIM coverage ensures you aren’t left stranded just because the other person fled the scene.
4. It’s Surprisingly Affordable
Compared to your primary liability and collision coverage, adding UIM coverage is usually a small fraction of your total premium. It provides a massive amount of financial “peace of mind” for the price of a couple of coffees a month.
The Bottom Line
You can be the safest driver in the world, but you can’t control who else is on the road. Underinsured motorist coverage is about protecting yourself from other people’s mistakes.
Check your policy: Take five minutes today to look at your “Declarations Page.” If you see a $0 or “Rejected” next to Underinsured Motorist coverage, it might be time to give us a call.