Uninsured or underinsured motorist coverage is a crucial component of automobile insurance that protects drivers in an accident with a motorist who lacks sufficient insurance. This type of coverage ensures that individuals are not left financially vulnerable if they sustain injuries or property damage caused by another driver who cannot cover the costs. In today's world, where the number of uninsured drivers continues to rise, understanding the intricacies and benefits of this coverage is essential for responsible vehicle owners.
Most car accident attorneys who help people suffering from serious injuries caused by vehicle collisions hear too many heartbreaking calls that go something like this:
Client: “A drunk driver rear-ended me, and I’ve been in the hospital. I’ve had surgery, and now I have tens of thousands in medical bills. I won’t be able to work for months or maybe ever again. My husband has taken off work to care for my injuries. Can you help me?”
Attorney: “That’s terrible. I can certainly try to help. Do you know the other driver’s insurance company?”
Client: “He told the police officer he doesn’t have insurance. He didn’t even have a driver’s license.”
Attorney: “That’s terrible. We’ll have to look at your insurance to see if it will help. Do you know the limits of your uninsured motorist coverage?”
Client: “What the heck is that?”
Attorney: “Well, it’s insurance that your agent offered you when you first bought your policy to protect you and your family in case you are injured because of the negligence or fault of an uninsured driver. It’s coverage against being hit and seriously hurt by a deadbeat drunk driver – or by anyone driving with too little or no insurance.”
Client: “Yeah, about that... I remember talking about that, but I wanted to save some money on my premium, so I opted not to buy that coverage.”
Attorney: “That was an unfortunate choice. I’ll do what I can, but I’m afraid there is not a lot I can do to help.”
Understanding the importance of uninsured or underinsured motorist coverage can make a significant difference in protecting yourself and your loved ones on the road. Investing in this type of coverage can mitigate the financial risks associated with accidents involving drivers who lack adequate insurance.
Understanding Uninsured and Underinsured Motorist Coverage
Perhaps the most important and least understood auto insurance available is uninsured and underinsured motorist coverage (UIM), which everyone can purchase when they acquire an auto insurance policy. Basic auto liability insurance protects drivers from the financial consequences of being sued for injuries they cause to another while operating a motor vehicle. UIM coverage allows drivers to protect themselves and their families from liability from others and from the irresponsibility of those who choose to drive without insurance or with insufficient coverage.
While Virginia historically has had low rates of uninsured drivers, that rate is increasing. Across the country, from 2019 to 2022, the rate of uninsured and underinsured drivers has increased considerably. A recent survey indicated that in 2022, more than 1 in 7 drivers nationwide were underinsured. An underinsured driver has purchased auto liability insurance but is responsible for an accident resulting in injury costs or property damage that exceeds their policy limits. While the number of underinsured drivers in Virginia is relatively low, the rate is much higher in neighboring states like Kentucky, where approximately 1 in 5 drivers are underinsured. In Colorado, more than 4 in 10 drivers are underinsured.
The Cost of Opting Out
In Virginia, uninsured and underinsured insurance is included in packages when purchasing auto insurance. While a vehicle owner may save a couple of dollars a month by opting out of UIM coverage, it is a risky way to economize. The legal team at Obenshain Law Group receives numerous calls from clients who, like the fictional client mentioned earlier, have suffered devastating losses in crashes caused by drivers with no insurance or limits that are woefully inadequate. It is heartbreaking when we explain that their UIM coverage is the bare minimum of $30,000 or that they opted for no UIM coverage at all. In such cases, there is typically nowhere else to turn, leaving those families to cope with the financial consequences with little external assistance.
As an experienced attorney, I frequently counsel friends, family, and employees about the critical importance of UIM coverage. The most expensive insurance increment anyone will buy is the minimum – $30,000. This is because over 95% of all claims arising from a car crash are resolved well under that amount. Consequently, the relative cost of purchasing higher coverage limits, such as $100,000, $250,000, or even $1,000,000, is relatively small compared to the cost of that first $30,000 coverage. This applies to both liability coverage and UIM. I encourage individuals to buy as much UIM coverage as they can afford. Hopefully, most people will never need to tap into that coverage, but with the increasing number of uninsured and underinsured drivers, it may be the only way to protect yourself and your family from others' irresponsibility.
Contact the Car Accident Attorneys at Obenshain Law Group Today
To ensure greater financial protection for you and your loved ones, consider reviewing your auto insurance policy and purchasing uninsured and underinsured motorist coverage. Don’t wait until it’s too late—reach out to your insurance agent today and secure the protection you deserve. If you’ve been injured in a car accident in Virginia, call Obenshain Law Group today at (540) 318-7360 to schedule a consultation.