What is Uninsured Motorist Coverage and Why Do I Need It?

March 7, 2023 General

Uninsured or Underinsured motorist coverage (commonly referred to as “UM” or “UIM” coverage) is a type of car insurance that provides protection for you if you are involved in a car accident with a driver who doesn’t have insurance or doesn’t have enough insurance to cover the damages.  

What Does Uninsured Motorist Coverage Do? 

Uninsured/Underinsured motorist coverage can help provide financial protection and peace of mind in the event of an accident with an uninsured driver.

Here are some ways in which uninsured motorist coverage can help if you’ve been in a car accident:

        1. Covering your medical expenses: If you or your passengers are injured in an accident with an uninsured driver, uninsured motorist coverage can help cover the costs of medical bills, hospitalization, and rehabilitation.
        2. Covering your lost wages: If you are unable to work due to injuries sustained in the accident, uninsured motorist coverage can help you cover the lost wages and income that you would have earned.
        3. Covering your property damage: If your car is damaged in the accident, uninsured motorist coverage can help cover the cost of repairs or replacement.
        4. Providing legal protection: If the uninsured driver disputes liability or refuses to pay for damages, uninsured motorist coverage can provide legal protection and help cover the costs of legal representation.

Is Uninsured Motorist Coverage Expensive? 

Uninsured Motorist Coverage is very affordable. The cost of uninsured motorist coverage in Alabama can vary depending on several factors.  These include your age, driving history, the type of vehicle you drive, and the amount of coverage you choose.  In general, uninsured motorist coverage can cost anywhere from $50 to $200 per year, depending on the factors mentioned above.  That’s only $4 to $16 a month!

According to the Alabama Department of Insurance, the minimum uninsured motorist coverage required by law in Alabama is $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage. However, it’s important to note that this minimum coverage may not be enough to fully cover the costs of an accident.

I’m A Safe Driver – Why Do I need Uninsured Motorist Coverage? 

Uninsured Motorist coverage protects you from other Alabama drivers.  According to a 2019 report by the Insurance Information Institute (III), approximately 18.4% of drivers in Alabama were uninsured. This means that nearly 1 in 5 drivers on Alabama roads do not have car insurance. Alabama’s uninsured driver rate is higher than the national average, which was 13% at the time of the study.

It’s important to note that driving without insurance is illegal in Alabama. Uninsured drivers can face fines, license suspension, and even criminal charges if they are involved in an accident. In order to protect yourself from uninsured drivers, consider purchasing uninsured motorist coverage as part of your own car insurance policy.  This simple and cost effective coverage can often be the difference between being protected after an accident with an uninsured driver and having to pay out of your own pocket. If you’ve been involved in an accident with an uninsured driver, Patrick Marshall Law is here to walk you through the legal process.