Why does your auto policy have uninsured/underinsured
motorist coverage?

The answer is simple. It protects you and your family. Knowing you have auto insurance is easy. But, knowing how much coverage you have for uninsured or underinsured motorists is a bit more difficult.

When another driver seriously injures you, that driver’s policy pays for your loss under liability coverage. Basically, your policy takes care of them, and their policy takes care of you. However, what if the other party does not have auto insurance, or the other driver does not have enough? This is when your UM/UIM coverage comes into play.

According to a study directed by the Insurance Research Council, 6.1 percent of New York drivers were uninsured in 2015. New York state law requires you to have auto insurance. The more auto insurance coverage you have, the more protection you have from lawsuits that could go after your personal assets. However, while auto insurance does protect you when you have an accident, it does not prevent you from having an accident. Nor does it prevent you from getting into an accident with one of the 6.1 percent of New Yorkers who are uninsured. If that happens, you could be in trouble.

New York State only requires a policyholder to carry minimum limits of $25,000/$50,000 for UM/UIM. This means that, although your liability limits could be substantially higher (for example, $100,000), you would only be entitled to recover $25,000 if you are injured as a result of an accident with an uninsured or underinsured motorist. However, beginning June 16, 2018, insurers must provide the same limits for UM/UIM as provided for liability when a new policy is written. While the policyholder can reduce the limit by a signed waiver, we do not recommend it.

If your policy was written before June 16, 2018, it is important that we discuss the importance of raising your UM/UIM limits to match the liability limits you have on your policy. Give us a call today.