When shopping for car insurance, the first thing we look at is cost. We need something that fits our budget, but sometimes we over look at the possible costs that may arise from the lack of coverage. At the end of the day, it is always best to be safe than sorry. Consider protecting yourself by purchasing uninsured motorist coverage and under insured motorist coverage.

In the state of California, one out of seven drivers are uninsured. This statistic places a lot of people at risk. If the at fault party does not have insurance, your uninsured motorist coverage will kick in. Your property damage, medical bills, and possible future costs can be taken care of by your insurance without raising your rates. However, if you do not have uninsured motorist coverage, you will find yourself having to pay for everything.

An uninsured driver is uninsured for a reason— they cannot afford it. The chances of them having the funds to reimburse you for your property damage and medical bills are unlikely. The burden of having to fix the damages on your automobile and seek medical attention is much more costly than signing up for UM/ UIM coverage.

Why Is UM Insurance Coverage Important?

Filing a lawsuit against a guilty party with no money is a waste of time. It does not matter how much the judge orders the at-fault party to pay, if they do not have the funds, they still will not pay. Again, the burden of your property damage and medical expenses will fall on you.
Even in scenarios where your own insurance company handles your claim, we highly recommend hiring an attorney. Although majority of insurance agents are helpful, there are the shady few that will try to get out of paying your medical expenses. Sometimes, insurance agents may say that your check is in the mail, when in fact, the check has not even been issued.
To avoid headaches, it is best to hire an attorney to deal with pesky insurance agents and collect maximum compensation for your incident.

Why Is UIM Insurance Coverage Important?

Underinsured motorist coverage is just as important as Uninsured motorist coverage. Majority of drivers in California have a 15/30/5 insurance. This means that the party at fault have limits of $15,000 for bodily injury, and if you have passengers up to $30,000, and up to $5,000 in property damage. Now, if the collision is yielding, this may cover it, but if the collision is severe the bare minimum policy coverage will not cut it. That is where UIM coverage kicks in. It will allow your attorney to maximize compensation for your injuries.

If you are still not convinced you need uninsured and underinsured motorist coverage, your insurance company will require you to sign a document that states you are opting out of:

Uninsured motorist (UM) injury coverage: monetary compensation for you and any passengers you may have in your car for injuries you sustained due to the negligence of the driver at fault.

Underinsured motorist (UIM) injury coverage: additional coverage in case the injuries sustained during the incident is greater than the limits of the at fault party’s insurance limits.

Uninsured motorist property damage: If the driver who collided with you does not have sufficient property damage coverage, your uninsured motorist coverage will kick in and take care of your car.

Final Thoughts

Insurance is meant for the rainy days. The negligence of another driver should not cause you any more difficulties than it already has. Before considering to reject UM/ UIM insurance, keep in mind that adding additional protection will not cost you much, but rejecting it may cost you a fortune.