Uninsured Underinsured Auto Insurance

Uninsured underinsured auto insurance protects you if you are in an accident with someone who does not have enough insurance to cover damages. Further, the coverage you purchase allows peace of mind if you are in any accidents.

Nationally, around 13% of drivers do not have insurance. That equates to about one in eight drivers, a relatively high risk. If you get into a crash with an uninsured or underinsured individual, you would have to sue them personally for damages and injuries.

Uninsured Underinsured Auto Insurance

As the names suggest, Uninsured underinsured auto insurance applies to different situations. However, in each case, the other driver must be at fault. Uninsured coverage applies when the other driver does not have liability insurance. Underinsured coverage applies when the other driver does not have enough insurance to cover all damages from the accident.

There are four kinds of uninsured underinsured motorist coverage:

• Uninsured motorist property damage;
• Uninsured motorist bodily injury;
• Underinsured motorist property damage; and
• Underinsured motorist bodily injury.

What It Covers

Uninsured underinsured auto insurance is referred to as U/UIM. This type of insurance usually provides coverage for you, your household members, those permitted to drive your vehicle, and passengers of your car. However, it’s always a good idea to check your policy to know who your plan covers. In fact, your insurance company can explain the coverage in detail so you know what to expect if you get into a crash.

Is it time to review your Uninsured underinsured auto insurance? Most of us buy our first automobile insurance when we are “young and poor.” Our interaction with an insurance sales agent goes something like this: “I have no money. Sell me the cheapest coverage you have to let me legally drive in Alaska.” As a result, insurance sales agents normally sell us “statutory minimum”  “50/100” liability insurance. If we get really good advice, we also understand the value of and buy a matching 50/100 of U/UIM coverage. This U/UIM insurance provides us with minimal insurance when some drunk, uninsured driver takes us out while we are waiting for a red light to change.

U/UIM

Uninsured underinsured auto insurance protects you (and all occupants of your vehicle and family members) when you are run over by an Uninsured or Underinsured Motorist – usually a drunk driver. If you (and your family) are badly hurt by an uninsured or underinsured motorist, this insurance stands in the place of the other driver and pays your claims, just as the other driver’s liability insurance would pay them … if the drunk had any insurance. It is staggering how many Uninsured Underinsured drivers we have on Alaskan roads. U/UIM is VERY important insurance for you and your family.

Statutory Minimum Is Not Enough

Buy at least as much Uninsured underinsured auto insurance as you buy liability insurance. Consider buying more to better protect your family. This insurance coverage may be all that is available to address a lifetime of medical bills, unemployment and pain. We recommend at least 100/300 coverage or $100K per person, and $300K per accident. It is far better than 50/100, but it does not provide much beyond minimal protection. The next step up is 250/500 or $250K per person, and $500K per accident.

IMPORTANT: U/UIM insurance is usually less expensive than liability insurance. It is not linearly priced. In other words, doubling your U/UIM coverage will usually NOT double your premium payment. It is smart to think: “How much is my life – and my family’s lives – worth?”

This Blog is Part 2 of a 4 Part Series. Check these posts for information about Liability, MedPay, and Umbrella Insurance.

Johnson & Associates has been helping Alaskans for nearly 30 years. It’s who we are.

And while we hope you never need us… We’re here if you do. ~ Doug Johnson

Please call Johnson & Associates to discuss your case: (907)277-3090 or use our online contact form.

Secondary Source: Insurance Information Institute

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