Of course we get asked these questions often, what is UM/UIM insurance and do I need it? and simply put the answer is, it is extra insurance in case there is no other insurance. Should you get it? Of course, but let’s dig in a little bit to give more clarity.

UM/UMI insurance stands for Uninsured Motorist (UM) and Underinsured Motorist (UIM) insurance. This type of insurance provides coverage for you and your passengers if you’re involved in an accident with a driver who either doesn’t have insurance (uninsured) or doesn’t have enough insurance coverage to fully compensate you for your injuries (underinsured).

Here’s a breakdown of what each component of UM/UMI insurance covers:

Uninsured Motorist (UM) Coverage: UM insurance helps cover your medical expenses, lost wages, and other damages if you’re injured in an accident caused by an uninsured driver. It also typically covers hit-and-run accidents where the at-fault driver cannot be identified or located.

Underinsured Motorist (UIM) Coverage: UIM insurance kicks in when the at-fault driver’s insurance coverage is insufficient to cover your damages fully. If the other driver’s liability limits are lower than your UIM limits, your UIM coverage can make up the difference, up to the limits of your policy.

UM/UMI insurance is designed to protect you financially in situations where the at-fault driver cannot adequately compensate you for your injuries and damages. It’s an important type of coverage to consider, as it provides an additional layer of protection beyond the liability coverage required by law. In some states, UM/UMI coverage may be mandatory, while in others, it’s optional but highly recommended.

Whether you need UM/UMI (Uninsured Motorist/Underinsured Motorist) insurance depends on various factors, including your individual circumstances, state regulations, and personal preferences. Here are some considerations to help you determine if UM/UMI insurance is necessary for you:

State Requirements: Some states require drivers to carry UM/UMI insurance as part of their auto insurance policy. In these states, UM/UMI coverage is mandatory, and drivers must purchase it unless they opt out according to state regulations.

Risk Assessment: Consider the likelihood of being involved in an accident with an uninsured or underinsured motorist. Factors such as your driving habits, the prevalence of uninsured drivers in your area, and the minimum insurance requirements in your state can influence your risk level.

Financial Protection: UM/UMI insurance provides coverage for medical expenses, lost wages, and other damages if you’re injured in an accident caused by an uninsured or underinsured driver. Without this coverage, you may be responsible for paying these expenses out of pocket if the at-fault driver cannot cover them.

Existing Coverage: Evaluate your existing insurance coverage, including liability limits, medical payments coverage, and personal injury protection (PIP). UM/UMI insurance can complement these coverages by providing additional protection in situations involving uninsured or underinsured motorists.

Cost vs. Benefit: Consider the cost of UM/UMI insurance premiums relative to the potential benefits it offers. While adding UM/UMI coverage may increase your insurance premiums, it can provide valuable protection and peace of mind in the event of an accident with an uninsured or underinsured driver.

Ultimately, the decision to purchase UM/UMI insurance depends on your individual needs and preferences. It’s advisable to review your insurance options carefully, assess your risk exposure, and consult with an insurance agent or advisor to determine the most suitable coverage for your situation.

Deciding not to get UM/UMI (Uninsured Motorist/Underinsured Motorist) insurance can have potential drawbacks and risks. Here are some reasons why forgoing UM/UMI coverage might be considered a disadvantage:

Exposure to Uninsured Motorists: Without UM coverage, you may be financially vulnerable if you’re involved in an accident caused by an uninsured driver. You would have to rely on your health insurance or pay out-of-pocket for medical expenses, lost wages, and other damages resulting from the accident.

Underinsured Motorists: Even if a driver has insurance, their coverage may not be sufficient to fully compensate you for your injuries and damages. Without UIM coverage, you could be left with significant expenses if the at-fault driver’s liability limits are inadequate to cover your losses.

Limited Legal Recourse: Pursuing compensation from an uninsured or underinsured driver through legal means may be challenging and could result in lengthy court proceedings. UM/UMI coverage provides a more straightforward means of obtaining compensation for your losses without having to rely solely on the at-fault driver’s resources.

Potential Financial Burden: Being involved in an accident can lead to substantial financial expenses, including medical bills, vehicle repairs, and legal fees. UM/UMI insurance provides an additional layer of financial protection, helping to mitigate the financial burden associated with accidents involving uninsured or underinsured motorists.

Legal Compliance: In some states, UM/UMI insurance is mandatory, meaning drivers are required by law to carry this coverage as part of their auto insurance policy. Failing to comply with state insurance requirements could result in legal penalties or fines.

While UM/UMI insurance adds to the cost of your auto insurance premiums, the potential benefits of having this coverage often outweigh the drawbacks, especially considering the risks posed by uninsured and underinsured motorists on the road. It’s advisable to carefully evaluate your insurance needs, assess your risk exposure, and consider the potential consequences of not having UM/UMI coverage before making a decision.