The Importance of Uninsured/Underinsured Motorist Coverage

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Explanation of Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist coverage is designed to protect you if you’re involved in an accident with a driver who either doesn’t have insurance or doesn’t have enough insurance to cover the damages. This type of coverage can pay for medical expenses, lost wages, and other damages resulting from the accident.

• Uninsured Motorist (UM) Coverage: This covers you when the at-fault driver has no insurance.
• Underinsured Motorist (UIM) Coverage: This covers you when the at-fault driver’s insurance limits are too low to cover the full extent of your damages.

Risks of Not Having This Coverage

Without UM/UIM coverage, you could be left paying out-of-pocket for significant expenses if you’re hit by an uninsured or underinsured driver. The financial impact can be devastating, especially considering that medical bills and car repairs can quickly add up.

• Financial Burden: You may have to cover medical costs, vehicle repairs, and other related expenses on your own.
• Limited Legal Recourse: Recovering damages through legal action against an uninsured or underinsured driver can be difficult and costly.
• Increased Stress: Dealing with the aftermath of an accident is stressful enough without the added worry of financial strain.

Real-Life Examples and Statistics

Understanding the real-world impact of UM/UIM coverage can help highlight its importance. Here are some statistics and examples:

• Statistics: According to the Insurance Research Council, about one in eight drivers in the U.S. is uninsured. In some states, this number is even higher.
• Real-Life Example: Imagine you’re driving home from work and get rear-ended by another driver. The impact causes significant damage to your car and sends you to the hospital with a back injury. If the at-fault driver has no insurance, you could be facing thousands of dollars in medical bills and car repairs. With UM/UIM coverage, your insurance can step in to cover these costs.
• Case Study: In a recent case, a driver with UM/UIM coverage was able to recover $50,000 for medical expenses and lost wages after being hit by an underinsured driver whose policy only covered $25,000. Without UM/UIM coverage, the driver would have had to bear the additional $25,000 out of pocket.

Don’t leave yourself unprotected on the road. Add uninsured/underinsured motorist coverage to your policy with PeachState Insurance and ensure you’re covered no matter what. Click here to get a free, quick and easy online quote and enhance your coverage today.

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