How much car insurance do you need (uninsured motorist coverage)?

In my last blog, I began discussing the question, “How much car insurance do I need?” But I focused on your liability car insurance coverage. Today, I am going to focus on the purpose of your uninsured motorist coverage and how important uninsured motorist coverage truly is.

Uninsured motorist insurance coverage is the part of your car insurance that will pay you if you are hurt in a car accident by another driver who does not have any car insurance. Unfortunately, we see this just about every day at Zanes Law. I look at it from this perspective … when someone is having trouble paying all of their bills, they typically don’t stop driving and/or give up their car. In addition, they tend to choose groceries and rent over paying for their car insurance during that difficult time. So they let their car insurance lapse. If you are unfortunate enough to be hit by this person after their insurance policy has lapsed, you have been hit by an uninsured motorist. This means they will not have an insurance policy to compensate you for your injuries, missed time from work, pain and suffering, etc. If you find yourself in this situation, legally, you can still sue the person who hit you and get a judgment, but the odds of you ever collecting money from this person are slim to non-existent.

For the above reason, you MUST purchase uninsured motorist coverage when you purchase your liability insurance. Unlike your liability coverage, which exists to protect others, your uninsured motorist coverage exists to protect you and your family. Although I don’t know this for sure, the impression that I have always gotten is that insurance companies prefer to not sell you uninsured motorist coverage. This is because the actual premium piece of this coverage is extremely inexpensive for you, but it costs the insurance company a great deal of money because they end up paying out on this coverage over and over. The reason insurance companies pay out on uninsured motorists coverage so often is because there are so many uninsured drivers on the road. Because of this, my advice to you is to purchase as much uninsured motorists insurance coverage as you can afford. I made this same decision years ago because of what I see every day, and I purchase my car insurance in order to protect my family first and foremost.