On the Road? You Need Underinsured / Uninsured Insurance Coverage!

If you are on the road on a motorcycle or even a car, DO NOT WAIT. Read this article. Be sure you you have Uninsured and Underinsured Motorist Coverage! Call us. Call your agent. Call SOMEBODY to make sure you have the coverage.

Uninsured and Underinsured Motorists Coverage, more commonly known as UM and UIM coverage, provides protection for a policyholder if the responsible individual in an accident injures them but doesn’t have any or enough insurance coverage to fully pay the policyholder’s damages. THIS IS EXTREMELYC COMMON IN A SERIOUS CRASH! Damages may include past and future medical bills, loss of income, pain and suffering, and mental anguish.  

In Alabama and Florida, these coverages also cover a policyholder if they are in an accident caused by a driver that flees the scene. Drivers that flee the scene are known as “phantom drivers” and are treated as “Uninsured”. This is the case even if the “phantom driver” never made any contact with your motorcycle or car.  

Why Do You Need this Coverage?

According to the latest data by the Insurance Research Council (IRC), in Alabama and Florida, the percentage of uninsured drivers is 19.5% and 26.7%, respectively.  The national average is 12.6%. By having Uninsured and Underinsured Motorist Coverage, you are protecting yourself from these uninsured individuals.

The above statistics don’t even account for the fact that many individuals carry the state minimum insurance coverage. In Alabama, that’s $25,000. In Florida, which is a “no-fault state” a car driver is not even required to carry the coverage necessary to cover another person’s damages! State minimum insurance coverages are rarely enough to compensate an individual seriously injured in a crash even when there is insurance available on the at-fault party’s vehicle.

How Do I Know if I Have this Coverage?

Some states require their motorists to have uninsured or underinsured motorist coverage, however, Alabama and Florida do not require you carry this coverage. In both states, it is required that the insurance companies offer you the coverage. BUT, you can refuse it in writing. Typically, the coverage costs 5% of your annual auto insurance premium.

You can determine if you have rejected this coverage by looking at your declaration page(s) of your auto and motorcycle policies. The declaration page(s) will either show a dollar limit or “Rejected.” If it says “Rejected,” you have refused the coverage. You need to reach out to your insurance adjuster to purchase as much of the coverage as you can afford.