If you own and operate a vehicle, most states mandate having liability insurance, but did you know that about 30% of the drivers in Alabama do not have liability insurance? It is estimated that in the U.S. about 14 percent of drivers are uninsured. While those statistics are alarming, it won’t change the fact that many people (even though required) will still drive without having liability insurance. This is why uninsured motorist coverage is so important.
What is Uninsured Motorist (UM) Coverage?
Imagine you are driving home from work when someone runs a red light and hits your vehicle, rendering it a total loss. You just assume that since it was the other driver’s fault that his insurance will pay, right? Then you learn that the other driver has no liability insurance on his car. Now what? This is where UM coverage comes into play.
Alabama law requires every car to carry at least the minimum limits of liability but also states that no liability policy will be issued without UM/UIM coverage. *Note that UM/UIM coverage can be rejected. Ask your local Alabama independent insurance agent for more details.
UM/UIM (Uninsured/Underinsured) Motorist Coverage can apply two ways. If someone hits you and causes property damage or bodily injury and does not have any liability insurance, your UM (Uninsured Motorist) coverage would apply.
Another scenario is the at fault driver has liability insurance, but it is insufficient to cover the amount of damages. For example, let’s say the at fault driver has minimum liability limits of 25/50/25. That means there is coverage of $25,000 per person for bodily injury, with a maximum payout of $50,000 total aggregate injuries per accident. The other $25,000 is for property damage. If your car is totaled from the accident and your car is valued at 45,000, then their $25,000 property damage limit is insufficient to cover your car. So, your UIM coverage would kick in for the balance.
For a nominal fee, uninsured motorists’ coverage not only provides protection for you while you’re operating a vehicle, but also when you’re a pedestrian. The good news is that if you are involved in a car accident that is not your fault, your monthly premiums will normally not go up if you receive payment under your UM/UIM coverage. When you need it the most, you will be glad to know you have it.
Review Your UM/UIM Coverage Today
If you are unsure whether to increase your limits under this coverage, contact us at Burkett & Associates today. We will be able to assist you with all your Alabama insurance needs. Call us TODAY at 256-704-7400.