Why You Need Underinsured Motorist Coverage
Learn why everyone should have Underinsured Motorist Coverage (what we in the business call “UIM” coverage). Liability coverage, which everyone is required by law to have, doesn't protect you from any injuries you may suffer; it protects other people from injuries they receive.
What is Underinsured Coverage?Underinsured motorist coverage, steps in when you're in an accident with an at-fault driver whose liability limits are insufficient to cover your damages or medical expenses. The at-fault driver's insurance will typically pay for all damages up to the policy limits, and then your underinsured motorist coverage will cover the excess amount up to the limits you select. Underinsured motorist coverage is designed to provide the injured party (you) with compensation above what is allowed by the at-fault party's policy.
Why is Underinsured Coverage So Important?Uninsured Motorist coverage protects you or passengers in your vehicle for bodily injury you or your passengers sustain in an accident involving a driver who has no liability coverage. The really scary fact is that about 1 in 10 Arizona drivers carry no insurance at all, even though it's required by law!
Even though Arizona law requires that all motorists carry liability insurance, not all Arizona drivers have liability coverage in force. Also, drivers may come into Arizona from other states or countries and not have liability coverage on their vehicles. UIM coverage is protection for you and your family from an underinsured driver.
With "Underinsured Motor Vehicle Coverage," the insurance company will pay compensatory damages for bodily injury resulting from the owner/operator of the uninsured vehicle, up to the limit of your insurance policy. UIM coverage helps protect your family from drivers with insufficient coverage; you can't control what they do. But you can make sure your have the kind of coverage to fully protect yourself and your family.