Personal Insurance

Do I Really Need Uninsured Motorist Coverage?

car insurance

As an insurance agent, I get questions all the time from clients and prospects about what coverages they need and don’t need.

While you are required by law to have liability insurance on your vehicle, there are certainly some coverages that are optional. Roadside assistance? You may not be worried about your vehicle breaking down. Collision coverage? Maybe your vehicle is an old clunker and it wouldn’t be a big loss if it was totaled.

One coverage I strongly recommend that a client never skimp on is uninsured and underinsured motorist coverage.

What exactly is this coverage? Uninsured and underinsured motorist coverage pays you for medical bills and lost wages if you are hit by another driver who doesn’t have insurance or doesn’t have enough insurance to cover those costs.

The following is an outline of the top three objections to having uninsured and underinsured motorist coverage and why you should consider it.

Objection 1
“I don’t want to pay for someone else’s insurance that they are required by law to have.”

In a perfect world, you wouldn’t have to pay for uninsured motorist coverage. Every driver would have insurance with adequate limits, and no one would ever be involved in a hit-and-run accident. But, according to the Insurance Information Institute, about 13% of drivers are uninsured – and this only takes into account uninsured drivers that have actually been identified. If an uninsured /underinsured driver causes an accident in which you are involved, you likely will have no other recourse than your own insurance. Technically that person is still liable, but without your own uninsured/underinsured motorist coverage, you would have to wait for a court settlement. If the other driver doesn’t have any liquid assets, you’re pretty much out of luck.

Objection 2
“I have great health insurance. I don’t need uninsured motorist coverage.”

That’s awesome that you have great health insurance! But let’s be honest, health insurance can be complicated. Do you have a deductible? How about co-pays? Is there a limit to how much your insurance will pay if you have ongoing medical costs? The answer to all these questions is most likely yes. You are going to have some out-of-pocket costs. And your health insurance isn’t going to pay you if you have to miss work. Your uninsured motorist coverage will pay all of your medical costs and pay you for your lost wages. In some cases, uninsured motorist coverage may even pay you for pain and suffering.

Objection 3
“I’m not going to get in an accident like that.”

Nobody wants to think about getting into an accident, but they happen every day. It’s not really a matter of if you will get into an accident, but when. While you may be a great driver, you have no control over the actions of others. It’s my job to ensure that you have the right coverage before an accident happens – rather than wishing that you had it after an accident occurs.

If you have questions about uninsured / underinsured motorist coverage, talk to your local Leavitt Group agent. They can review your policy and ensure you’ve got coverage that really meets your needs. We are here to help protect what matters most to you.

© 2018 Leavitt Group. The coverages discussed herein are for illustrative purposes only. The terms and conditions of your specific policy may differ from those described. Please consult the provisions of your policy for the terms, conditions, and exclusions that apply to your coverage.

John Biddle joined Leavitt Great West Insurance Services as a personal lines account executive in August 2016. He is focused on educating families on the right insurance products to protect their way of life. John is a firm believer that the advice and advocacy that an independent insurance agent provides is invaluable for the insurance transaction. He is proud to live in and serve the people of Montana.