I suggest you to open your declaration pages & check to make sure that:
1. You have un/underinsured motorist (UM) coverage.
2. Your un/underinsured motorist (UM) coverage limits are equal to your liability coverage limits.
I have found that several of my new clients fall into these two situations because their agents didn't do a good job explaining this important coverage to them.
In an auto insurance, there are two most important coverages that directly benefit you, the insured, in the event of an accident. They are: Un/underinsured motorist (UM) & Medical Payment (MP).
Let's talk about UM coverage in this post:
When you buy liability coverage, you are protecting the other party (or parties) that you cause the accident to. This is a good thing to do, besides, liability coverage is a required coverage when you buy auto insurance.
However, though liability coverage is required to drive a car, you will find that a lot of people drive without insurance! So, what will happen if somebody hits you and doesn't have insurance? The answer is you will end up paying for your own damages or medical bills if you don't have un/underinsured motorist coverage!
So, while everybody should be a good & responsible citizen, he/she should also look out for their own good (first). UM coverage is the protection coverage that pays you, as the insured, if you get hit and the other party doesn't have insurance or enough of it. With UM, you can have a peace of mind that you will be covered regardless of the other side having insurance or not.
1. You have un/underinsured motorist (UM) coverage.
2. Your un/underinsured motorist (UM) coverage limits are equal to your liability coverage limits.
I have found that several of my new clients fall into these two situations because their agents didn't do a good job explaining this important coverage to them.
In an auto insurance, there are two most important coverages that directly benefit you, the insured, in the event of an accident. They are: Un/underinsured motorist (UM) & Medical Payment (MP).
Let's talk about UM coverage in this post:
When you buy liability coverage, you are protecting the other party (or parties) that you cause the accident to. This is a good thing to do, besides, liability coverage is a required coverage when you buy auto insurance.
However, though liability coverage is required to drive a car, you will find that a lot of people drive without insurance! So, what will happen if somebody hits you and doesn't have insurance? The answer is you will end up paying for your own damages or medical bills if you don't have un/underinsured motorist coverage!
So, while everybody should be a good & responsible citizen, he/she should also look out for their own good (first). UM coverage is the protection coverage that pays you, as the insured, if you get hit and the other party doesn't have insurance or enough of it. With UM, you can have a peace of mind that you will be covered regardless of the other side having insurance or not.
In fact, if you deny UM coverage, the law requires that your agent asks you to sign a UM Exclusion form & keeps it on file.
Now that you understand more about UM coverage, you should buy the highest un/underinsured motorist coverage that you can afford. Especially, when UM coverage is very affordable to buy!
I am sure some people will immediately think that they should buy much higher UM coverage limits for themselves, and the State minimum liability limits for others!
The thing is insurance companies are very smart as well. They have this rule: UM coverage limits can never be higher than the liability limits you choose.
So, go back and check to see if your liability limits = UM limits.
If not, immediately call your insurance company & makes that change right away! The premium for UM is extremely cheap, so it won't change your premium much at all. The protection is extremely important for you.
Some agents out there might not explain to you the importance of UM coverage to you; therefore, you might have asked them to reduce the coverage limits to save a few bucks a month! That agents should be "fired" for not doing his/her fiduciary duty to his clients.
Dana Nguyen
State Farm AgentI am sure some people will immediately think that they should buy much higher UM coverage limits for themselves, and the State minimum liability limits for others!
The thing is insurance companies are very smart as well. They have this rule: UM coverage limits can never be higher than the liability limits you choose.
So, go back and check to see if your liability limits = UM limits.
If not, immediately call your insurance company & makes that change right away! The premium for UM is extremely cheap, so it won't change your premium much at all. The protection is extremely important for you.
Some agents out there might not explain to you the importance of UM coverage to you; therefore, you might have asked them to reduce the coverage limits to save a few bucks a month! That agents should be "fired" for not doing his/her fiduciary duty to his clients.
Dana Nguyen
Ins. Lic.#: 0I74425
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