Types of Uninsured Motorist Insurance Coverage (UM/UIM): Quotes and Rates

Uninsured motorist insurance coverage is an important insurance additive that you can purchase to increase your auto insurance policy. Uninsured motorist coverage can also incorporate underinsured motorist coverage as well. Every driver needs to have the required amount of auto insurance for their state. However, about one in every five drivers are driving without insurance, or without the minimum amount required. This is a scary fact, because if you are involved in an accident, there is a very real chance that it will happen with someone who may not be insured. Having this coverage can ensure you are covered in the event that your accident does happen with an uninsured driver. It can be very costly since even though it may be the other driver's fault, you would have to go through your own insurance. Then, you would also see a rate increase.

Uninsured vs. Underinsured

The UM coverage option can be either for uninsured or underinsured drivers, although most policies will encompass both. Uninsured is fairly self explanatory where the driver is driving with no insurance at all. Underinsured is where the driver does not have enough insurance under their state law. Underinsured drivers will still have to pay out their policy limit, and then your underinsured coverage would cover the difference. States require liability coverage, as well as property damage. It varies by state, but most states require at least $25,000 in liability damage for at least two to three people, and also $15,000 of property damage. Bodily injury liability is required by every state. It is pretty much the most basic form of insurance and a must. This will cover any medical bills that are incurred by you and your passengers. You may be thinking that your health insurance would cover your bills. This is true, but it would not cover lost wages if you can't go to work due to the injuries. Your uninsured motorist coverage will cover you, and that is where it can also be a great benefit. The property damage covers any damages to your car that the accident caused. This type of coverage ensures you are covered in the event you are hit by an uninsured motorist.

Cost

Uninsured motorist coverage can provide you thousands of dollars of extra coverage. For that amount of coverage, you may be thinking you will have a high increase to your already high insurance rates. However, the cost is not that much at all. Most insurance companies charge you at most, $100 extra per year for this coverage. It is a great option and a small cost to add so much. When you think if you get into an accident, there is a 20% chance of the other driver being uninsured/underinsured, it makes a great deal of sense. 

As you can see, uninsured motorist coverage is an option you may want to pursue. Almost 20 states actually require it, but if you are in one of the 30 or so states that it is optional in, you will want to seriously consider it.