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In most locations, at least 1 in 10
drivers has no liability insurance. In some
locations, as many as half of the drivers may
be uninsured. That is why insurance companies
sell, and many states require, uninsured motorist (UM) coverage.
If an uninsured driver is legally liable in an auto
accident, uninsured motorist coverage:
- Pays what the individual’s insurance company
would have paid if that individual had liability insurance.
- Covers you, your family and your passengers
for medical expenses, lost wages, and other injury-related
losses including pain and suffering, up to the uninsured
motorist limits you purchase.
In some states, uninsured motorist coverage
also pays for damages to your vehicle after
a deductible. If you already have collision
insurance, though, this coverage may not be needed.
You must be careful not to duplicate coverage
if you are to get the most from your insurance
premium dollars. Examine the coverage you
already have before buying more. If you have
good life, medical and disability income
insurance, you may need less uninsured motorist
coverage. Likewise, if you carry high no-fault
coverage limits, you may need less uninsured
motorist coverage because no-fault covers you
for medical bills and lost wages regardless
of who is legally liable.
In most states, when you buy uninsured motorist
coverage, you also can buy underinsured (UIM)
motorist coverage for bodily injury to you,
your family or your passengers resulting from
the negligence of someone whose liability
insurance limits are insufficient. The definition
of an underinsured motorist varies significantly
from state to state. In most cases, property
damage is not included in underinsured motorist coverage.
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