We've talked about Uninsured Motorist (UM) Coverage. Now it's time to speak about Underinsured Motorist (UIM) Coverage and why you need it!

If you get in a wreck and are not at fault, you'll probably assume that the at-fault driver will cover the costs. You know that YOU have insurance, and you assume they do too. But what if they don't? OR what if they do have insurance coverage, but it's the minimum required by the state.

Highly doubtful.

Given our soaring auto insurance costs in Louisiana, it's highly likely that the person who hit you isn't going to have enough coverage! 

So what is Underinsured Motorist Coverage exactly?

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 to cover your 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.

Underinsured motorist coverage typically helps pay for medical bills, lost wages, and property damage 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.

car crash (1)

But how often does that really happen? 

In touch economic times, people cut where they can. That often means not paying their bills, cutting back on insurance, or driving without insurance. In our last blog, we discussed that nearly 1 in 5 drivers in Louisiana don't have auto insurance. 

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. Now I think we can agree that with rising costs, that is not nearly enough to purchase a new vehicle in 2024-- so that should help you decide if you really need UIM or not! 

Can't I sue them instead?

Sure, you can attempt to sue the at-fault driver for the damages, but if they don't have the assets to draw your damages award (if you win your suit), you still won't be able to collect. Lawsuits can take years to resolve, and even if things work out in your favor, in the meantime, you'll be stuck! Underinsured motorist coverage prevents that by compensating you for the difference up to your policy limits. 

All in all, the best defense is a good offense. Having Uninsured & Underinsured Coverage is the best way to ensure you're not paying for someone else's mistakes!

Have some questions? Want more info? Call us today to discuss your options, or visit our website for a customized quote.  

We know that adding more coverage to your policy is usually not what you want to consider. We also know that in this economy, everyone is cutting back where they can. Unfortunately, this leaves you vulnerable. 

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 further educate and inform our clients and community.

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

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