David Greene from Greene & Phillips Injury Law Firm has some important information you need to know about Uninsured Motorist Insurance coverage.
Uninsured motorist coverage is a component of your auto insurance policy that is not required by state law. Uninsured Motorist (UM) covers your vehicle damage and injury costs if you are hit by someone without insurance. Underinsured Motorist (UIM) covers you if you are hit by someone who may have insurance, but not enough to cover your property damage or injury expenses.
Someone may not have Uninsured Motorist coverage if they are trying to save money and may have waived their UIM component. Insurance agents sometimes don’t explain its advantages very well.
UIM/UM coverage is some of the most inexpensive insurance you can buy. Depending on your policy, many times it costs you an additional $15-20 every six months.
It is very important to have Uninsured Motorist coverage on your policy because Alabama law requires every driver to have at least $25,000 in liability coverage. That is so if you hit someone, your insurance will pay up to $25,000 toward the injury or property damage of the vehicle or person you hit. Unfortunately many people do not have insurance. A recent study showed that one in four vehicles are not insured. If one of those uninsured vehicles hits you and causes damage, you will be stuck with the bill. We also see many instances where injury costs and vehicle damage total more than $25,000. Cars and trucks are heavy and can do tremendous damage quickly. You may get hit by a vehicle that has the Alabama minimum, but that amount of coverage may not be enough to cover your hospital bills.
UM coverage steps in when you are in a wreck with someone who does not have enough insurance to cover the costs of the accident. It pays for the balance of the cost up to the total amount of your own policy.
Depending on your policy, your UIM coverage may cover you in an instance where you are hit by a uninsured driver while you are walking or riding a bicycle. Many insurance policies cover you as a pedestrian but not all of them. You should double check this on your own policy.
You should always have as much Uninsured Motorist coverage as you do liability insurance.
If you have questions about whether you have enough insurance, feel free to call or stop by, we would be happy to look at your policy with you.