– Alabama and Florida have a high percentage of uninsured drivers, at 19.5% and 26.7% respectively.
– These states also have many drivers who carry only the state minimum insurance coverage, which is often not enough to cover damages in a serious accident.
– Uninsured and Underinsured Motorist Coverage, or UM and UIM coverage, provides protection for policyholders if the responsible party in an accident does not have enough insurance to fully pay for damages.
– This coverage also applies if the accident is caused by a driver who flees the scene, known as a “phantom driver.”
– UM and UIM coverage can help with past and future medical bills, loss of income, pain and suffering, and mental anguish. – The firm’s recent study found that uninsured or underinsured motorist coverage is not required in Alabama and Florida, but insurance companies are mandated to offer it and drivers can reject it in writing.
– The coverage typically costs 5% of the annual auto insurance premium.
– To determine if you have rejected this coverage, check the declaration page(s) of your auto and motorcycle policies. If it says “Rejected,” you have refused the coverage and should consider purchasing it as much as you can afford.
– It’s important to reach out to your insurance adjuster to discuss purchasing the coverage.
On the Road? You Need Underinsured / Uninsured Insurance Coverage!
Leave a Reply