We are faced with overpopulation and overcrowding in our community. The increase of drivers on our road results in an an increase in auto related accidents.
Many of the drivers on our roads are insured for the statutory minimum limit of $25,000 which means that even if you are gravely injured, you will likely receive $25,000 to compensate you for your loss. Barring the very unlikely circumstance that the driver and/or owner are independently wealthy, you will (unfortunately) be forced to accept $25,000.
The way to protect yourself is to purchase additional “Uninsured / Underinsured Automobile Liability Coverage” or “UIM” coverage. If you do so, you can prevent the situation as stated above. For example, if you purchased a policy of UIM for $100,000 and the offending vehicle (insured with a $25,000 policy) causes an injury that requires surgery, you may then elect to exercise your rights to obtain an additional $75,000. (The $100,000 is offset by any monies that you receive from the other party, in this case, $25,000).
This coverage not only protects you as a driver, but also as a passenger and pedestrian. Additionally, any family members (either through blood relation or marriage) are 100% covered.
The UIM coverage does not cost much (as little as $200 extra per year), but it most certainly provides peace of mind in this busy world.
Call your insurance agent and inquire about this coverage – it could save you from financially imploding after a serious accident.