Car accidents can lead to expensive damages, including physical injuries and damaged property. Most drivers already know that they need to purchase a certain amount of liability coverage to protect themselves in the event of an accident. This coverage will apply when the driver causes bodily injury or property damage. Unfortunately, not every driver on the road will purchase this type of coverage. In addition, some drivers don’t purchase enough liability coverage to reimburse victims adequately in the event of an accident. For this reason, experts recommend purchasing Uninsured Motorists Coverage (UI) and Underinsured Motorists Coverage (UIM) for additional protection. Drivers should also purchase Uninsured Motorists Property Damage Coverage (UMPD) when available.
UI, UIM and UMPD Basics
UI, UIM, and UMPD will kick in when a motorist that is not adequately insured causes injury or property damage with their vehicle. Because a single accident can result in thousands of dollars in losses, having this coverage is essential. Otherwise, you may find yourself facing financial distress over an accident you did not cause.
Although this type of coverage is a requirement for drivers in some states, Indiana allows drivers to decline UI and UIM. However, this is not recommended. If you don’t purchase UI and UIM coverage, a single accident could leave you with serious financial problems.
Don’t Skimp on UI and UIM Coverage
Studies have shown that 10 to 15 percent of drivers in the United States fail to buy car insurance. These rates are even higher in the state of Indiana, which ranks among the top ten when it comes to uninsured drivers. In fact, as of 2015, the percentage of uninsured drivers in the state of Indiana was nearly 17 percent. This data does not include drivers who carry inadequate insurance. Based on these statistics, it is clear that the risk for drivers in the state of Indiana is high.
The current state of economic uncertainty makes the purchase of UI and UIM coverage even more important. Because recent conditions have led to less driving and fewer car accidents, many insurance companies are offering premium refunds. Economic hardship has also led insurance companies to offer deferred billing. However, these forms of relief are all temporary. When deferred bills come due, and premiums are increased to their standard levels, some drivers may drop their insurance or reduce their coverage in response. This will lead to a higher number of uninsured and underinsured drivers on the road.
Purchasing Adequate Coverage
Keep in mind that every motorist in the state of Indiana is already required by law to purchase a minimum amount of liability coverage. This coverage protects you in the event of an accident where you are personally responsible for the resulting injuries and damage. UI and UIM policies, on the other hand, protect you when someone else causes an accident.
UI and UIM policies with low limits may be available. Even though the price on these policies may be reduced on a low limit policy, they won’t provide the level of coverage you need. For this reason, it is important to work with an independent agent who understands your needs and can help you choose the policy that provides the most appropriate amount of protection.
If you are interested in exploring your UI and UIM insurance options, please contact Binford Insurance today. We are also happy to help with any other insurance-related concerns you may have.