The rising cost of car insurance is a harsh reality for almost everyone. Unfortunately, the young drivers who can least afford it feel it the most. According to a recent Deloitte report, 45% of young Americans have thought about driving without insurance because of the financial burden, and 17% are already doing so.
Driving without insurance is not only a personal financial risk; it is illegal as well. Uninsured drivers can cause financial and emotional damage, leaving you scrambling to pay for medical bills, and lost wages.
Therefore, it is essential to protect yourself by understanding Uninsured Motorist (UM), and Underinsured Motorist (UIM). These coverages along with high limits are sometimes overlooked but can be your saving grace in the case of an accident.
The number of uninsured drivers varies across states, but the national average is alarming: 1 in 8 drivers lack insurance. This translates to millions of vehicles on the road posing a potential financial threat. The reasons for going uninsured are complex, ranging from affordability concerns to lack of awareness, but the consequences are clear:
- Financial hardship: If an uninsured driver hits you, you’re left footing the bill for everything from medical expenses to lost wages. This can be financially devastating, especially for young drivers.
- Legal battles: Recovering compensation from an uninsured driver can be a long and arduous legal battle with no guarantee of success.
- Emotional toll: The stress and frustration of dealing with an uninsured driver accident can be immense, adding to the emotional burden of the event.
Arming Yourself with UM and UIM:
While eliminating the risk of uninsured drivers is impossible, you can significantly mitigate the financial impact by including UM and UIM coverage with high limits to your car insurance policy. Let’s break down what each one does:
- Uninsured Motorist (UM): This coverage kicks in if you’re hit by a driver without insurance and are injured. It covers medical expenses and lost wages. UM coverage also protects you if an uninsured driver injures you as a pedestrian.
- Underinsured Motorist (UIM): This protects you when you’re hit by a driver whose insurance coverage isn’t enough to cover your damages. Underinsured pays the difference up to your policy limit less what you received from the other insurance company.
Why UM and UIM are Crucial Now:
With the rising number of uninsured drivers, these coverages are no longer optional but essential. It’s an investment in your financial security and peace of mind. Imagine the difference it could make:
- Peace of mind: Knowing you’re protected financially in case of an accident with an uninsured driver can provide immense peace of mind.
- Reduced financial burden: If you’re hit by an uninsured driver, UM and UIM can help cover your medical bills, and lost wages, preventing financial hardship.
- Faster recovery: Without the stress of worrying about the financial implications, you can focus on your physical and emotional recovery after an accident.
Making Informed Choices:
The cost of car insurance, which includes UM (Uninsured Motorist) and UIM (Underinsured Motorist) coverage, can vary depending on your location, driving record, and vehicle type. However, don’t let the initial cost discourage you. Consider it as an investment in your well-being and financial security. Call us to discuss your options and choose the coverage that best suits your needs and budget.
Remember, driving without insurance is illegal and comes with severe consequences. By choosing to be responsible and adding UM and UIM coverage, you’re not just protecting yourself but also contributing to a safer driving environment for everyone on the road.