What Is UM/UIM Insurance?

If you're a driver in New Jersey or Pennsylvania, you need car insurance. Most people know that the point of car insurance is to protect you financially if you're ever involved in a car accident. When most people think of car insurance, they're really thinking of liability insurance - the coverage in the at-fault driver's policy pays to the injured party. But what if the at-fault driver doesn't have insurance? Or has insurance that isn't sufficient to fully compensate the injured party's injuries? That's where uninsured and underinsured motorist coverage (UM/UIM) comes in.

What is UM/UIM Insurance?:

UM/UIM insurance is a type of car insurance that provides financial protection when you are in an accident caused by a driver who does not have enough insurance to cover your expenses, or no insurance at all. Essentially, UM/UIM insurance helps fill in the gaps when another driver’s insurance is insufficient or nonexistent. It's the best investment you can make to protect yourself from the negligence of others on the road.

Here's how it works:

If the at-fault driver’s policy only offers $25,000 in coverage, but your medical bills and property damage total $50,000, your UIM insurance will help cover the remaining $25,000. And that's not even calculating damages for pain and suffering, which are much higher and often stem from lifelong injuries.

How Much UM/UIM Coverage Should You Have?:

The amount of UM/UIM insurance you should carry depends on several factors, including your state’s minimum requirements, your personal financial situation, and the value of your assets. It’s generally recommended to carry UM/UIM coverage equal to your bodily injury liability limits to ensure adequate protection.

In some states, UM/UIM coverage is optional, while in others, it's mandatory. Even if it’s not required by law, it’s wise to consider adding it to your policy for extra protection. Again, it's the best investment you can make to protect yourself from a future situation where you're severely injured in a car accident, but the other driver has no means to compensate you. You should consult with your insurance agent to determine the appropriate limits for your situation.

Conclusion:

Uninsured and underinsured motorist coverage is an essential protection for drivers, helping to cover the costs when you're involved in an accident with a driver who lacks sufficient insurance. It provides peace of mind, ensuring that you’re not financially burdened by the actions of others. As always, it’s important to review your auto insurance policy regularly and ensure you have adequate coverage for your needs. If you have questions or need assistance navigating your insurance options, don’t hesitate to reach out to the attorneys here at Garber Law. We're experts in car accident and insurance law, and are happy to help with whatever you need.