UM insurance, or uninsured/underinsured motorist insurance, is a type of car insurance coverage that protects you in case you’re involved in an accident with someone who doesn’t have enough insurance to cover the damages or doesn’t have insurance at all. While UM insurance is not required by law in all states, it can be a valuable addition to your insurance policy to ensure that you’re fully protected in case of an accident. In this article, we’ll take a closer look at UM insurance, how it works, and whether or not you need it.
What is UM Insurance?
UM insurance is designed to protect you in case you’re involved in a car accident with an uninsured or underinsured driver. If you’re hit by someone who doesn’t have enough insurance to cover the damages, your UM insurance will kick in to cover the difference. In some states, UM insurance may also cover hit-and-run accidents, where the at-fault driver cannot be identified or found.
UM insurance is typically an optional coverage that can be added to your car insurance policy. In some states, however, it may be required by law. The specific coverage and limits of UM insurance may vary depending on your policy and where you live.
How Does UM Insurance Work?
Let’s say you’re involved in a car accident with an at-fault driver who doesn’t have insurance. Without UM insurance, you would be responsible for paying for the damages out of pocket or through your own insurance policy. However, if you have UM insurance, your insurer will step in to cover the damages up to the coverage limit you selected.
For example, let’s say the at-fault driver caused $20,000 in damages and you have UM insurance with a $25,000 limit. Your insurer will pay up to $20,000 to cover the damages, and you’ll be responsible for the remaining $5,000. If you had selected a higher UM insurance limit, your insurer would cover more of the damages.
Do You Need UM Insurance?
Whether or not you need UM insurance depends on a few factors, including where you live and how much risk you’re willing to take on. In some states, UM insurance is required by law, while in others it’s optional. Even if it’s not required in your state, it may still be a good idea to consider adding UM insurance to your policy.
If you live in a state with a high percentage of uninsured or underinsured drivers, UM insurance can be especially valuable. According to the Insurance Information Institute, around 13% of drivers on the road are uninsured. If you’re involved in an accident with one of these drivers, UM insurance can help ensure that you’re not stuck with the bill for their negligence.
UM Insurance vs. UIM Insurance
It’s important to note that UM insurance is different from UIM insurance, or underinsured motorist insurance. While UM insurance covers you if you’re hit by an uninsured driver, UIM insurance covers you if you’re hit by a driver who doesn’t have enough insurance to cover the damages. UIM insurance is also an optional coverage that can be added to your car insurance policy.
The main difference between UM and UIM insurance is the type of at-fault driver they cover. UM insurance covers uninsured drivers, while UIM insurance covers underinsured drivers. If you want to be fully protected in case of an accident, it’s a good idea to consider adding both UM and UIM insurance to your policy.
FAQ
Question |
Answer |
What is UM insurance? |
UM insurance, or uninsured/underinsured motorist insurance, is a type of car insurance coverage that protects you in case you’re involved in an accident with someone who doesn’t have enough insurance to cover the damages or doesn’t have insurance at all. |
Is UM insurance required? |
UM insurance is not required by law in all states, but it may be required in some states. It is typically an optional coverage that can be added to your car insurance policy. |
What does UM insurance cover? |
UM insurance covers you if you’re involved in an accident with an uninsured or underinsured driver. It may also cover hit-and-run accidents in some states. |
Do I need UM insurance? |
Whether or not you need UM insurance depends on where you live and how much risk you’re willing to take on. If you live in a state with a high percentage of uninsured or underinsured drivers, UM insurance can be especially valuable. |
What is the difference between UM and UIM insurance? |
UM insurance covers you if you’re hit by an uninsured driver, while UIM insurance covers you if you’re hit by a driver who doesn’t have enough insurance to cover the damages. |
Conclusion
UM insurance can be a valuable addition to your car insurance policy if you’re looking for extra protection in case of an accident. Whether or not you need UM insurance depends on a few factors, including where you live and how much risk you’re willing to take on. Be sure to consider your options carefully and talk to your insurance agent to determine whether UM insurance is right for you.
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