Uninsured motorist coverage is a valuable component of a car insurance policy. If an uninsured driver causes an accident, UM coverage helps pay for your car repairs and hospital bills. Nineteen states currently require UM coverage by law, and many others require insurance companies to offer it when purchasing a policy.

How Does Uninsured Motorist Coverage Work?

If an unfortunate accident occurs and is caused by another driver, that driver will hopefully have liability insurance. Their insurance company steps up to cover your medical costs, car repair, and other related expenses. A 2021 study conducted by the Insurance Research Council found that 12.6 percent of drivers, now a staggering one in 8 on the road – have no insurance coverage at all.

UM applies in multiple situations:

• An accident in which an uninsured vehicle strikes your moving or parked car.
• An accident in which an uninsured vehicle strikes your property (such as a shed or fence).
• An accident in which an uninsured vehicle strikes you such as a pedestrian or cyclist.

These may also apply if you’re the victim of a hit-and-run. This happens when the driver who caused the accident flees before you can get their information or contact law enforcement. A hit-and-run can involve two or more vehicles, a vehicle and your property, or your vehicle and a bystander or individual on a bicycle. Many urban areas nationwide have seen a rise in commuters using electric bicycles. Drivers need to become increasingly aware of their presence.

What Does Uninsured Motorist Insurance Cover?

Depending on how your coverage is made up, your UM will be there for you during a time of need to pay for items such as:

• Medical bills, along with physical therapy and rehab to recover from their injuries.
• Lost wages stemming from the accident.
• Pain and suffering.
• Burial and funeral expenses.
• Bills for repairing all involved autos.

Different Types of Uninsured Motorist Coverage:

UM consists of Uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). With UMBI, your insurance company will help pay for lost wages, pain and suffering, and medical bills incurred during accidents. With UMPD, your insurance company will help pay for repairs to your property or complete replacement of damaged elements.

Uninsured Motorist Coverage Limits:

Purchasing insurance coverage is beneficial for anyone, as it provides peace of mind when the unexpected happens. On the road, it’s not just those known for being “loose cannons” that can unwittingly instigate a very severe accident! The all-too-common “fender bender” is one of the leading causes of driver’s rates to go up. UM coverage has its limits, and any expenses beyond this cap will need to come out of your pocket.

UM limits are usually expressed as three numbers divided by slashes, such as 150/300/50. This breaks down to:

• $150,000 UMBI limit per person. The insurance company will reimburse the client for no more than $150,000 to any individual that undergoes an accident.
• $300,000 UMBI limit per accident. The insurance company will reimburse the policyholder for no more than $300,000 combined to everyone who undergoes a harmful incident.
• $50,000 UMPD limit per accident. The insurance company will reimburse the policyholder for no more than $25,000 towards repairing the vehicle or completely replacing it. You will also be reimbursed for other property involved in the accident.

UMPD may also include a deductible, which works in much the same fashion as it does for health insurance. This represents what will be your share of the costs – it’s the amount that you pay toward the full replacement or repair of the damaged vehicle. When you are meeting with us here at the Alexander Insurance Agency of St. Charles to add this type of coverage, you select this amount, and choosing a lower deductible means you pay a lower share if you process a claim.

What Are Stacked UM Limits?

Some states allow insurance companies to offer a “stacked” limit feature, which effectively multiplies your limits to kick in and boost your coverage level. If you choose this option, the insurance company will multiply your UM limits by the number of active vehicles on your policy. For example, if you have a UM on a policy for 3 cars and limits of 200/400, the uninsured motorist bodily injury limits are effectively stacked to 600/1200. If you do make this choice, your premiums will be more expensive.

How Much Uninsured Motorist Coverage Do I Need?

Missouri requires UM coverage, so you must add it to your policy with at least the state minimum limits. If your liability limits are 100/300/100, this is the amount of UM you will need to carry as well.

Do I Need Uninsured Motorist Coverage if I Have Full Coverage?

If you already have a full coverage policy, it may not be necessary for you to procure UM. The collision coverage portion will pay for any damage to your vehicle that an uninsured driver causes. Personal injury protection, medical payments coverage, and health insurance are alternatives that can cover medical bills which can skyrocket quickly after a sudden accident. What may begin as something small such as a sprained thumb can quickly escalate up to internal injuries, needed time away from work, or the need for routine check-ups.

Your Ideal Provider For Turbulent Times on the Road:

So many avoidable accidents happen due to distracted driving these days, which can change things for the worse in one unfortunate instant. Detail-oriented guidance from us at the Alexander Insurance Agency will allow you to select the policy that is adequate and all-protective for you. Don’t allow an individual who does not want to play by the rules to foil your future driving plans and secure your driving future today!