Uninsured motorist coverage, also known as UM coverage, is an auto insurance policy that protects drivers in the event of a collision with an uninsured or underinsured driver. Even though many states require drivers to carry liability insurance, there are still many people on the roads who don’t have insurance.
UM coverage provides financial compensation for damages resulting from an accident with an uninsured driver. This includes medical expenses, lost wages, and even pain and suffering. In some states, it may also cover property damage.
Why You Need It
There are several reasons why UM coverage is important:
1. Protection from Uninsured Drivers: UM coverage provides financial protection if you are hit by an uninsured driver. Without this coverage, you would be left paying for damages out of your own pocket.
2. Peace of Mind: Having UM coverage gives you peace of mind knowing that you’re covered in the event of an accident with an uninsured driver. You won’t have to worry about whether the other driver has insurance or not.
3. Affordable: UM coverage is relatively inexpensive compared to other types of auto insurance. For a small premium, you can protect yourself from the financial burden of an accident with an uninsured driver.
4. Legal Protection: UM coverage protects you legally. If you’re in an accident with an uninsured driver and you don’t have UM coverage, you may be held responsible for damages even if the accident wasn’t your fault.
5. No-Fault Accidents: In some cases, UM coverage can protect you in a no-fault accident. If you’re in an accident with another driver who is at fault and doesn’t have insurance, your UM coverage may cover your damages.
In conclusion, uninsured motorist coverage is an important part of any auto insurance policy. It provides financial protection in the event of an accident with an uninsured driver and gives you peace of mind. Even if your state doesn’t require it, it’s a good idea to add UM coverage to your auto insurance policy. The small additional premium is well worth the protection it provides.