You know that you need liability protection, but is that really enough? What happens if another driver doesn’t have liability protection? Keep reading to find out.
What is UI and UIM Coverage?
UI and UIM stand for uninsured and underinsured motorist coverage. When you buy liability coverage, your bodily injury and property damage coverages only pay for damages that you cause to others. If another driver hurts you or damages your property, their BI or PD coverage should reimburse you, but they may not have insurance, or they may not have enough insurance. Your own insurance policy doesn’t fill in this gap unless you’ve added uninsured and underinsured motorist coverage.
How Many Drivers Drive Without Insurance?
In Arizona, insurance experts estimate that 12% of drivers don’t have insurance. That’s about equal to the national average. That doesn’t include the large number of drivers who have inadequate coverage, such as state minimum policies.
Arizona’s state minimum insurance requirements raise to $25,000 bodily injury per person, $50,000 bodily injury per accident, and $15,000 in property damage per accident on July 1, 2020. Most new cars are worth more than $15,000, and medical bills can also quickly exceed those minimums. If you get hit by an uninsured or underinsured driver, you may have to pay those costs with your own money until you’re able to recover the money from the other driver. And, since many drivers who don’t have insurance or are underinsured aren’t wealthy and don’t have the savings to pay a judgment in a lawsuit, you may never recover your money if you don’t have your own UI and UIM coverage.
What Can You Do if You Need to Reduce Costs?
During times of economic uncertainty, you may look to trim “unnecessary” insurance coverage. By now, you can probably see that UI and UIM coverage is pretty important.
If you’ve been impacted by COVID-19, the first thing to look for is an automatic rebate from your insurance company. Since fewer people are driving and getting into accidents, many insurance companies are offering partial refunds or discounting your next renewal. If you need more assistance, you may be able to arrange a payment plan or arrange deferred billing.
Your last option is to look at your coverage itself. First, if you have healthy savings, consider increasing your deductible. Next, talk to your insurance agent about your current limits and whether you might have too much coverage. Third, shop around for a cheaper quote. Small changes in your insurance score combined with how insurance companies set pricing could mean a company that was always more expensive on your previous quotes is now your cheapest option. Finally, understand that going without enough auto insurance or any insurance at all can cost you far more than the small difference in premium, so treat not paying for insurance like not paying your rent or mortgage.
Get Help From Your Insurance Agent
Choosing the right amount of insurance is an important decision that you may not want to make alone. You also probably want an easy way to get quotes from multiple insurance companies all at once. That’s where your independent insurance agent comes in. Contact Vanyo Insurance today.