If you think you're "fully covered," you may want to read this blog!

We hear it all the time when talking about vehicle insurance. When we ask what kind of coverage someone has, it's not uncommon for us to hear, "Oh, I've got full coverage." It's also not uncommon for us to dig deeper and find some critical coverages missing: Uninsured and Underinsured. We've previously discussed them individually, but let's look at the whole picture.

Let's review Underinsured Motorist Coverage.

Underinsured Motorist (UIM) Coverage is a type of auto insurance that provides financial protection if you're involved in an accident with a driver who doesn't have enough insurance (Meaning they don't have high enough bodily injury or property damage limits) to cover your bodily injury medical expenses and property damage.

This coverage fills the gap between the other driver's liability coverage and the actual costs incurred due to the accident.

So what's covered?

Typically, Underinsured Motorist Coverage helps pay for medical bills, property damages, and lost wages resulting from an accident with an underinsured driver. Without this coverage, you might be forced to rely on your health insurance or pay for these expenses yourself, and even then, your health insurance company will ask about your auto insurance coverage.

Now, let's review Uninsured Motorist Coverage.

Uninsured motorist (UM) insurance is a type of auto insurance that protects individuals involved in accidents with drivers who lack insurance or have insufficient insurance to cover the resulting damages.

Typically, when you get in a wreck that's not your fault, you'll rely on the at-fault party's insurance to cover it.

But what happens when they don't have insurance or have the bare minimum?

UM coverage is designed to help you recover expenses related to injuries, medical bills, and property damage when the at-fault party cannot cover these costs.

But how often does that happen? 

Unfortunately, all too often in Louisiana, we see more and more hit-and-run accidents and more people driving around who don't have enough insurance or are underinsured.

Let's be honest: when times get tough, people cut where they can. This often means not

 paying bills, running bad credit, and even cutting insurance (or worse, dropping it altogether).

In our last blog, we discussed that nearly 1 in 5 drivers in Louisiana don't have auto insurance. That means you're at risk every single time you drive.  

I have liability coverage for property damage and bodily injury. Isn't that enough? 

Those with insurance are technically only required to have the minimum amount necessary for the state where they reside. Here in Louisiana, the state minimum is $15,000 bodily injury per driver, $30,000 bodily injury per accident, and $25,000 property damage per accident. With rising costs, that is not nearly enough to purchase a new vehicle in 2024—and a hospital stay can quickly blow that out of the water!

So what's worse than paying higher insurance? Thinking you're fully covered, only to realize that you can't afford a new vehicle after a wreck and now suddenly have medical bills piling up. We have also discussed how insurance is the basis for building your financial future.

Nothing is worse than paying for an insurance policy, getting into an accident, realizing you don't have enough coverage, and possibly paying out of pocket for the additional cost. 

We also recommend FULL UM coverage, not non-economic UM coverage.

We'd love to talk more if you're unconvinced or want to double-check your coverage!

Call us today to discuss your options, or visit our website for a customized quote.  

At Kastner Insurance Group, we are always looking out for our clients. We want you to be covered, no matter what happens, so we are always thinking of ways to educate our clients and community further.

Allow our team to provide the best coverage because, as always, quotes are free, and knowledge is power!

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