What Are Underinsured or Uninsured Motorist Coverage and Do I Need it?
Underinsured and Uninsured Motorist coverage is an insurance designed to provide medical injury related benefits in the event that you have an accident that is not your fault and the person responsible lacks insurance liability coverage or is under-insured to the point that it is insufficient to compensate you for your injuries. This can be very bad for the party that is either underinsured or uninsured as a motorist. You could be left sitting with a large bill if you are in an accident.
Underinsured or Uninsured Motorist Coverage
This is also known as UM/UIM varies from state to state but in general it pays for:
- Medical expenses
- Loss of income
- Funeral expenses
- Pain and suffering – In some states, pain and suffering are not covered.
In Missouri Uninsured Motorist coverage is mandatory. Underinsured motorist can be declined. UM/UIM does not pay for damages to your vehicle. That coverage is not available in Missouri. The loss will probably be covered by your collision coverage.
Reasons to carry Uninsured and Underinsured Coverage
Nationally you have a one in seven chance of being involved with an uninsured motorist. This number has remained consistent for 20 years. Since it stayed almost exactly the same for the last 20 years it appears that it doesn’t seem to be affected by the economy. It also does not appear that tougher state UM/UIM laws seem to matter.
It doesn’t cost that much. $65 to $70 per year can mean the difference between a fair settlement and a disastrous financial loss. Most of the people that drive without auto insurance are knuckleheads. And they drive like knuckleheads. Uninsured and under-insured claims have consistently been some of our agencies largest losses. The UM/UIM losses tend to have a higher cost because someone has been legitimately and significantly injured.
Remember that the Insurance Advisors of St. Louis are independent insurance agents and we offer a wide variety of different types of insurance for you and your family. If you have questions about another type of insurance call us or fill out our get a quote form today.