The purpose of Underinsured Motorist Coverage (UIM) is to protect yourself in case you are injured in an auto-accident by someone who has insurance coverage that is insufficient to cover the cost of your losses.
When most people think of losses in a car wreck the first thing that comes to mind is the damage to their car, but this is often just the tip of the ice berg. Modern medicine is a wonderful thing that can save lives and cure injuries in ways once not thought possible, but if you are seriously hurt in a car wreck you will find the costs of your medical treatment quickly surpass the cost of replacing your vehicle; in addition to lost wages.
Over the years I’ve talked to many people about adding UIM to their car insurance policies and I usually get the same initial reaction, “that is what the other guy’s insurance is for.”
The problem with that approach is the majority of divers in the state of Kentucky are driving around with minimum insurance which have lower policy limits and will only pay $25,000 for the injuries of a single person and a total of $50,000 for everyone injured in the accident.
Throughout my career I have had many clients who were seriously injured by people with minimum coverage and those clients without UIM were usually unable to recover for the full cost of their injuries. As much as I want to make sure that all of my clients are made whole, if the insurance coverage isn’t there then you have limited options and none of them are good.
Call your insurance agent to review your policy as a whole. You will find that adding UIM isn’t as expensive as you might expect and you should take the opportunity to talk to the agent about adding Uninsured Motorist Coverage (UM) and increasing the limits on your Personal Injury Protection (PIP).