The Most Important Insurance Coverage You’ll Ever Own
Do you understand what uninsured/underinsured motorist coverage (UM) really means? Most have never even heard of it.
Because of the tremendous number of calls I received regarding UM coverage, I wanted to share with you the importance of having a sufficient amount of uninsured/underinsured (UM) coverage under your automobile insurance policy.
What Is Uninsured Motorist Coverage?
Let’s say you’re driving down the road and another driver runs a stop sign, striking your automobile and severely injuring you. Suppose your medical bills total $40,000.00 (not uncommon with today’s rising health care costs) and your loss of wages currently total $15,000.00.
Now, let’s also suppose that the person who hit you has no personal assets and does not have automobile liability coverage (statistics show that about 25% of all drivers in Georgia are driving illegally with no insurance).
How Much Will You Be Able to Recover For Your Injuries, Medical Bills, and Lost Wages?
The answer is: unless you have UM coverage on your own automobile, the answer, tragically, is zero!
UM coverage is very inexpensive. It protects you! When you purchase what is called liability coverage (that’s the type required by law), it protects everyone else in the world in case you hurt them because of your mistake. In contrast, UM coverage PROTECTS YOU for your injuries caused by the negligence of another driver.
How Much UM Should You Have?
I recommend a minimum of $100,000.00 of UM coverage because there are simply very few activities in today’s society more dangerous than driving. YOU MUST insist that your insurance agent gives you sufficient UM coverage, because he will not voluntarily do it on his own.
This sample policy illustrated below shows bad coverage amounts because of the bad UM limits. With this policy, you would be paying a lot to insure everyone else in the world (see the $100,000 in liability coverage), except for yourself. Its premium cost is $124 per pay period.
|Coverages||Limits of Liability||Veh1|
|Discounts: 15% Renewal | 25% Multi-Car|
|Bodily Injury Liability||$100,000 per person
$300,000 per accident
|Property Damage Liability||$50,000 per accident||Medical Costs|
|Payments Option||$1,000 per person||$24|
|UM Bodily Injury||$25,000 per person
$50,000 per accident
|UM Property Damage||$10,000 per accident||INCL|
But look at the relatively inexpensive cost of UM coverage. It costs only $17 per period. You should pay a few extra dollars to have your UM coverage raised to $100,000.00, the same amount you have in liability coverage.
CHECK YOUR AUTO INSURANCE DECLARATION PAGE TODAY! If you have any questions about the type and amount of coverage you currently have, please feel free to contact my office at (912) 384-5700.