Why You Should Secure Uninsured Motorist Insurance

Here’s what this type of auto insurance can do for you.

As a driver, you know that you are legally required to carry auto insurance in Carrollton, Texas.  While you might know about liability, collision, and comprehensive coverage, you might not know about the other insurance options available to you.  For instance, you might not know very much about uninsured motorist coverage.  Curious to see what this type of insurance can do for you?  Then read on to learn more.

  • What is Uninsured Motorist Insurance?

Uninsured motorist insurance is designed to protect you in the event that you get into an accident with a driver who is not carrying adequate liability coverage to pay for your repairs and medical costs.  If the at-fault driver does not have enough coverage to compensate you for the losses they have caused, then your uninsured motorist insurance will step in and ensure that you do not have to pay for your damages and injuries out-of-pocket.

  • What Does Uninsured Motorist Insurance Cover?

Uninsured motorist insurance actually refers to two separate but similar coverages: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD).  As the names suggest, UMBI insurance is designed to cover the medical treatment that you may need following an accident with an uninsured driver.  UMPD will cover the cost of repairing your car after an accident caused by an uninsured driver.  While these two coverages are usually bundled together, some states offer the opportunity to purchase them separately.

  • Do I Really Need Uninsured Motorist Coverage?

In short, yes.  Currently, 22 states require drivers to carry some minimum amount of uninsured motorist.  However, even if your state does not mandate this coverage, it is still important to carry this protection.  Across the country, 1 in 8 drivers is uninsured or carry inadequate liability insurance.  However, this percentage can jump up to 1 in 4 in some states.  With all these drivers on the road, it’s important that you protect yourself and your wallet from a costly accident.  As an added bonus, having the right uninsured motorist insurance will also ensure that you have coverage if you are involved in a hit-and-run accident.

  • How Much Does Uninsured Motorist Insurance Cost?

Generally speaking, uninsured motorist insurance costs about 5% of your annual car insurance premium.  For instance, if you pay $1,000 in premiums every year, then adding uninsured motorist coverage will be an additional $50.  However, keep in mind that the actual cost of this coverage is dependent on a variety of personal factors.  For instance, your claims history, driving habits, and policy discounts will all influence your rates.

This is what you need to know about uninsured motorist insurance.  Do you have additional questions regarding your auto insurance in Carrollton, Texas?  If so, then contact the experts at Mike Leonard Insurance Agency.  Our dedicated team is eager to find you the right coverage from one of our many carriers including: Kemper, MetLife, Nationwide, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance.