Uninsured/Underinsured Motorist Insurance: Is it necessary?

Uninsured Underinsured Motorists CoverageUninsured motorists/underinsured motorists coverage is protection for YOU against drivers who do not have the means (be it through their liability car insurance policy or their own funds) to compensate you in the event of an accident for which they are at fault.

Uninsured motorists/underinsured motorists insurance covers bodily injuries to yourself and/or your passengers when the person who caused the accident has no insurance or insufficient insurance. Depending on the policy, uninsured motorists/underinsured motorists insurance may also cover property damage (that is, damage to your vehicle).

Read on to learn all about underinsured/uninsured motorists coverage and then be sure to enter your ZIP above to start comparing car insurance for FREE!

What are Uninsured Motorists/Underinsured Motorists?

Most of us know that a person who does not carry any car insurance is considered an uninsured motorist. But there are other situations that will qualify a driver for uninsured status as well.

If the car insurance company of a driver who is found at fault for an accident refuses to pay a claim or does not have the capital with which to do so, then that driver is considered uninsured.

Another example of uninsured drivers arises in the case of hit-and-run accidents. Such crimes fall under the uninsured motorist category.

uninsured/underinsured motorist coverageUnderinsured drivers are those who cause accidents that exceed their level of insurance coverage. When you purchase underinsured motorist insurance, your insurance company is signing up to pay the difference between the accident damages and the amount of the at-fault driver’s insurance. Therefore, the number noted as your policy’s underinsured motorist limit is actually the total of both pay-outs (your company’s and the underinsured’s company) combined.

How Many Uninsured Motorists/Underinsured Motorists Are There?

Today’s economy is wreaking havoc on the number of uninsured motorists / underinsured motorists on the road today. For many, less money in the pocket means less money to use for car insurance. Some areas are more susceptible to the phenomenon than others.

The following list demonstrates the incidence, from highest to lowest, of uninsured motorists in each of the 50 states, plus the District of Columbia:

  • New Mexico 29%
  • Mississippi 28%
  • Alabama 26%
  • states uninsured motorist coverageOklahoma 24%
  • Florida 23%
  • Tennessee 20%
  • California 18%
  • Arizona 18%
  • Michigan 17%
  • Washington 16%
  • Ohio 16%
  • Kentucky 16%
  • Texas 15%
  • Nevada 15%
  • Arkansas 15%
  • Wisconsin 15%
  • Illinois 15%
  • Montana 15%
  • Colorado 15%
  • D.C. 15%
  • Indiana 14%
  • Missouri 14%
  • Rhode Island 14%
  • Alaska 13%
  • Maryland 12%
  • Hawaii 12%
  • Louisiana 12%
  • Iowa 12%
  • underinsured motorist coverage percentagesMinnesota 12%
  • North Carolina 12%
  • Georgia 12%
  • New Hampshire 11%
  • Oregon 11%
  • Delaware 10%
  • Kansas 10%
  • Connecticut 9%
  • Virginia 9%
  • South Carolina 9%
  • Idaho 9%
  • Wyoming 9%
  • New Jersey 8%
  • Utah 8%
  • Nebraska 8%
  • West Virginia 8%
  • Pennsylvania 7%
  • South Dakota 7%
  • Vermont 6%
  • New York 5%
  • North Dakota 5%
  • Maine 4%
  • Massachusetts 1%

Is uninsured motorists/underinsured motorists insurance expensive?

uninsured/underinsured motorist coverage

Uninsured motorists / underinsured motorists coverage is much cheaper than other forms of car insurance such as liability, collision, and comprehensive. The industry average for uninsured motorists / underinsured motorists coverage holds that the cost is about 10% of a driver’s total premium.

A careful analysis of your location and financial situation can help determine if uninsured motorists / underinsured motorists coverage is right for you. The percentage of uninsured drivers in your state is one factor to consider. Another thing to look at is your health insurance policy. Since uninsured motorists/underinsured motorists coverage is most often a form of protection against bodily injury, you will want to look at health insurance coverage to see the extent of existing protection.

Uninsured motorists/underinsured motorists coverage is a good option for those with holes in their health insurance.

You will also want to keep in mind that uninsured motorists/underinsured motorists coverage protects not only you, but all the passengers in your vehicle (who may or may not be covered by the same health insurance policy).

Is uninsured motorists/underinsured motorists insurance expensive?

Uninsured motorists/under insured motorist coverage is an add-on that can be applied to either a liability or a comprehensive auto insurance policy. The price that you pay for uninsured and underinsured motorists coverage varies according to the amount that you buy. Even if you select a liability car insurance policy that just covers the state minimum, you can still get uninsured and underinsured motorist protection at a good rate.

uninsured/underinsured motorist coverage necessaryAnother option for motorists that want to buy the maximum amount of uninsured/underinsured motorist coverage is an option known as stacking in the car insurance industry. In basic terms, stacking underinsured and uninsured auto coverage is done by combining the amount of coverage that you have on all of your vehicles and applying it to one car if you get into a collision. This practice is not allowed in all states, so you should contact your car insurance provider if you are considering this option.

Compare Uninsured Motorists / Underinsured Motorists Coverage Online

You can arrive at the best deal on any form of car insurance coverage by using our convenient online car insurance comparison tool. You will receive multiple quotes after typing in your information just one time. By comparing these quotes, you can determine which one best fits your lifestyle and sits most comfortably in your wallet. Compare quotes today by entering your ZIP code in our comparison tool below for FREE.

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