If you’re a driver, you probably already know that having auto insurance is a legal requirement. But what happens if you’re involved in an accident with someone who doesn’t have insurance or doesn’t have enough? This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage shine. If you’ve never thought much about these types of coverage, it’s high time you did.
Let’s break it down so you’re not left holding the bill when someone else drops the ball.
What is Uninsured Motorist (UM) Coverage?
Imagine you’re cruising along, singing your favorite song, when BAM!, a car runs a stop sign and crashes into you. You hop out to exchange insurance info, but the other driver doesn’t have any.
That’s where Uninsured Motorist (UM) coverage steps in. Simply put, it covers you if you’re hit by someone with no auto insurance. In Alabama, state code §32-7-23 requires insurers to offer UM coverage by default, with minimum limits of $25,000 per person and $50,000 per accident for bodily injury.
UM coverage includes:
- Medical bills, lost wages, and destroyed property
- Hit-and-run accidents
- Affordable premiums for major protection
What is Underinsured Motorist (UIM) Coverage?
Now imagine the other driver does have insurance, but it barely covers a trip to urgent care. UIM coverage kicks in when the at-fault driver’s policy isn’t enough to cover your expenses.
UIM coverage helps with:
- Medical bills and lost wages beyond the other driver’s limits
- Property damage
- Pain and suffering when injuries are severe
It’s like a financial safety net that catches what the other driver’s policy misses.
Why UIM and UM Coverage are Essential for Drivers
Here’s the kicker: According to the Insurance Research Council, in 2023, over 33% of U.S. drivers were either uninsured or underinsured. That’s one in three chances you’ll be stuck with someone else’s mess.
Why it matters:
- UM protects you from uninsured drivers and hit-and-runs
- UIM fills the gap when coverage falls short
- Both offer peace of mind and financial protection
How to Determine the Right Coverage Amount for You
Not sure how much UM/UIM coverage you need? Consider these factors:
- State Requirements: Alabama requires insurers to offer UM, but you can opt out. Don’t.
- Health Insurance: If your health plan is limited, go higher on UM/UIM.
- Vehicle Value: Newer cars = higher repair costs = more coverage needed.
- Financial Security: No emergency fund? Don’t skimp on protection.
- Talk to an Expert: Your insurance agent can tailor coverage to your needs.
At the end of the day, these coverages aren’t just “optional” extras; they’re critical for your financial protection. Accidents happen, and while you can’t always control the other driver’s actions, you can control how prepared you are.
Before you hit the road, check your policy, talk to your agent, and make sure you’re covered.If you’ve been in an accident, your UM or UIM coverage falls short, or your insurer isn’t playing fair, Timberlake, League & Brooks is here to help. We fight for drivers to get the compensation they deserve.
