What You Need to Know About Uninsured/Underinsured Motorist Coverage


Don’t wait until it’s too late to find out you don’t have this important coverage. A few dollars a month in premiums could end up saving you thousands.

We once had a client call with a question about his grandson, Joe, who had run into trouble with auto insurance. Joe had been sitting in his car outside of a restaurant in Pittsburgh when a drunk driver rounded the corner and slammed right into the back of his car. While Joe was thankfully unharmed, the damage to his car made it a total loss, or “totaled” in insurance lingo.

While Joe had auto insurance, he had declined both collision and uninsured/underinsured motorist coverage to save money. And the drunk driver who hit him? She had no auto insurance at all.
Where did this leave Joe? With a severely damaged vehicle and absolutely ZERO insurance to help repair or replace it.

This scenario is both very familiar and totally avoidable.

Uninsured/underinsured motorist coverage costs a few dollars a month and could save you thousands if you need it.

Here are a few Frequently Asked Questions about uninsured/underinsured motorist coverage and how it can protect you and your family.

What is uninsured/underinsured motorist coverage?

Uninsured/underinsured motorist coverage is insurance that can help pay for damages, repairs, and medical bills that result from an accident with an uninsured or underinsured driver.

What does “uninsured” mean?

It refers to drivers who have no insurance, drivers who have insurance that does not meet the state mandated liability requirements, and drivers whose insurance denies the claim.

What does “underinsured” mean?

It refers to a driver who HAS auto insurance, but not enough to cover the costs of the accident. Drivers commonly choose the minimum liability coverage, which is often not enough to cover repairs or replacement.

How does uninsured/underinsured motorist coverage work?

Let’s look at this example. Beth rear ends Jill’s car at a stop sign. Jill goes to the hospital and is treated for a broken ankle. Her medical bills total $30,000. Beth’s insurance pays her total policy amount of $20,000, leaving Jill $10,000 short on her medical bills.

In this case, Jill can file an uninsured/underinsured claim with her insurance company to cover the remaining $10,000 for her medical bills. If Jill didn’t have uninsured/underinsured motorist coverage, she would have been left to pay the $10,000 out of her own pocket.

How much does uninsured/underinsured motorist coverage cost?

Uninsured/underinsured motorist coverage typically costs $50 to $75 per year. Coming in around $4 to $6 per month, this coverage costs less than most people spend on coffee in one week.

Do all states require uninsured/underinsured motorist coverage?

No. It is only required in about half of the states. While many states, including Pennsylvania, do not require it, we highly recommend having uninsured/underinsured motorist coverage no matter where you live.

How can you find out if you have uninsured/underinsured motorist coverage?

Don’t wait until you need it to find out that you DON’T have this important coverage. Contact your auto insurance provider as soon as possible to ensure you have uninsured/underinsured motorist coverage.

Do you want to find out if you have uninsured/underinsured motorist coverage?
Contact our experts at 610-422-3530.

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