Car accidents are stressful enough without having to worry about whether the other driver can pay for your damages. Unfortunately, many drivers are uninsured or underinsured. The Insurance Research Council reports that roughly one in eight drivers in the U.S. lacks sufficient insurance. This makes uninsured/underinsured motorist (UM/UIM) coverage a crucial—but often overlooked—part of your auto insurance policy.
Bridging the Coverage Gap
When another driver causes an accident, you naturally expect their insurance to cover your medical bills, lost wages, and vehicle repairs. But if that driver has no insurance or only carries minimal coverage, you could face significant financial strain. State-required minimum coverage is often shockingly low—sometimes as little as $25,000 per person—which is rarely enough for serious injuries.
UM/UIM coverage steps in to fill this gap. It allows you to file a claim with your own insurance company when the at-fault driver cannot fully compensate you. In essence, it ensures that your losses are covered even if the other driver’s policy falls short—or doesn’t exist.
The True Cost of Serious Injuries
Serious car accidents can lead to enormous expenses: emergency room visits, surgeries, ongoing therapy, prescription medications, and months of lost income. Medical costs can easily exceed $100,000, and long-term complications or permanent disabilities may further impact your finances.
Without UM/UIM coverage, your only recourse may be legal action against an uninsured driver. Even if you win a court judgment, collecting money from someone without assets or insurance is often impossible. In these cases, you could end up paying out of pocket for injuries that weren’t your fault.
Protection in Hit-and-Run Situations
UM/UIM coverage also covers hit-and-run accidents, where the at-fault driver flees the scene. Without it, you would have no way to recover damages, leaving you responsible for all costs. This protection alone makes UM/UIM coverage invaluable.
Affordable Peace of Mind
Despite its importance, UM/UIM coverage is surprisingly affordable. Adding it to your policy typically costs only a few extra dollars per month—a small investment for protection against potentially hundreds of thousands of dollars in medical bills, lost income, and vehicle damage.
Making Smart Choices
Review your current auto insurance policy to ensure you have UM/UIM coverage and that your limits match your liability coverage. Experts generally recommend equal limits for liability and UM/UIM protection.
If you’ve been injured in an accident involving an uninsured or underinsured driver, consulting with an experienced car accident lawyer can help you understand your rights and maximize recovery.
Don’t wait until it’s too late. Protect your financial future by making sure your policy includes adequate uninsured and underinsured motorist coverage.