Uninsured motorist coverage protects you from an at fault driver who doesn’t carry the state required minimum insurance.
If you’re in an accident caused by someone who doesn’t have enough insurance to pay your medical bills, this type of insurance will help pay the cost of your damages.
When you buy car insurance, you have to choose whether or not to buy uninsured motorist coverage, which can make it confusing to know if it’s right for you.
Fortunately, there are several ways to know if you need this extra layer of protection.
1) You live in a no fault state
When you live in a no fault state, it can be difficult to get coverage for your injuries if the at fault driver does not have insurance.
That is why it is important for drivers in no fault states to carry uninsured motorist coverage. These types of policies will cover your medical expenses and damages if the other driver does not have insurance or enough insurance.
Your car has been in an accident: In some cases, uninsured motorists are another car that was involved in an accident with your vehicle.
Your car has been stolen: There may also be times when someone steals your vehicle and crashes into another person’s vehicle causing injury or damage.
2) You have an old car
Do you have an old car that no longer has a value? If so, you may want to consider uninsured motorist coverage.
This type of coverage will help protect you if you are in an accident with someone who doesn’t have liability insurance and their policy does not cover the cost of damages.
It also provides protection against hit-and-run accidents. One downside to this kind of coverage is that you need to buy it when you buy your car’s insurance.
The good news is that these policies typically offer discounts for bundling them together!
Another thing to note about this coverage is that you can never be 100% covered because there are certain scenarios where the law requires you to take responsibility for another driver’s costs.
The takeaway: Consider getting uninsured motorist coverage if you’re on a tight budget but still want some peace of mind.
3) You have a loan on your car
If you have a loan on your car, then chances are that your lender requires you to purchase uninsured motorist coverage.
However, if you don’t have a loan or your lender doesn’t require this, then it’s up to you whether or not you want uninsured motorist coverage.
There are several different circumstances where having this type of insurance could be beneficial for those who do not have a vehicle loan.
This may include being involved in an accident with a driver without insurance, getting injured by an animal or other person and suffering damages from their property, and many other situations.
If you still need some convincing as to why you should buy uninsured motorist coverage, there is also the fact that accidents can happen anytime.
Doing research will help you decide if this is the right type of insurance for you before making a decision about purchasing it.
4) You have a high-risk job
If you have a high-risk job, it might be a good idea to get uninsured motorist coverage. According to the Centers for Disease Control and Prevention, over 2.8 million people are injured in car accidents every year in the U.S., and about 4,900 of them die.
For instance, if you’re a truck driver or police officer, your risk of being involved in an accident is higher than the average person’s.
As such, there’s really no one size fits all answer when it comes to deciding whether or not you should have uninsured motorist coverage.
It all depends on what type of profession you have and how often you use your vehicle on the job. While some professions will necessitate that you have UM/UIM coverage, others won’t require it at all.
Your best bet is to speak with your agent who can evaluate your individual situation and give you a better sense of what level of insurance protection is right for you.
5) You’re a high-risk driver
If you are a high-risk driver, it is important that you purchase uninsured motorist coverage.
High-risk drivers can include those who have been convicted of DUI or DWI, a driver with more than one at fault accident in the last three years, or a driver who has been in an at fault accident that resulted in bodily injury.
If any of these apply to you, be sure that your insurance includes uninsured motorist coverage.
1) The policy will protect you if someone else causes damage and they don’t have insurance for their car.
2) It may also cover injuries that occurred during an accident caused by another person who doesn’t have auto insurance.
3) It may also pay for damages up to the limits specified in the policy if you were injured as a result of another person’s negligence.
4) Finally, it pays for injuries and property damage if your car was involved in an accident with a vehicle owned by someone without auto insurance .
6) You live in a high crime area
You live in a high crime area and have heard stories about people being mugged on the way home from work.
Even though you don’t have anything worth stealing, it’s still frightening to walk alone at night.
The best option for you is uninsured motorist coverage because it will protect you in the event that an uninsured driver hits you and doesn’t have enough money to pay for your medical expenses or car repairs.
Liability insurance won’t cover the costs of repairing your vehicle if the other driver is at fault, which means you could end up paying out of pocket.
Umbrella insurance also has limitations so getting uninsured motorist coverage as well can help keep more of your hard-earned money in your bank account where it belongs.
Uninsured/underinsured motorists are more common than you think: Did you know that 29% of all crashes involve some sort of uninsured/underinsured motorists?
7) You have a history of accidents or traffic violations
If you have a history of accidents or traffic violations, or if your driving record is not clean, then you may want to consider investing in uninsured motorist coverage.
Your rates will be higher than the rates for someone with a perfect driving record, but it will be worth it when you are involved in an accident and need the protection.
Keep in mind that if you do not get this type of insurance and the other driver does not have insurance either, then they can sue you personally for any damages or injuries that they sustained.
In some cases, people who cause accidents purposefully do not get insurance because they know their victims won’t be able to sue them personally.