One of my clients recently called me and indicated that he obtained a quote from another insurance carrier. It only took 15 minutes, their agent offered liability limits similar to the ones that he currently had but offered lower Uninsured and Underinsured limits to help reduce the cost of the insurance. The agent asked my client if he had good medical insurance? The agent indicated that by lowering the limits on this coverage he would save money and his medical insurance would pay the same as the Underinsured and Uninsured coverage would on his policy.
Well, needless to say that this agent missed the mark on the coverage afforded under this form. First, medical insurance these days come with deductibles and copays which you would be responsible to pay. Underinsured and Uninsured coverage does not have deductibles, or copayments. Furthermore, Uninsured and Underinsured pay in addition to medical bills, pay for loss of income, pain and suffering, and loss of consortium. They also pay for retraining legal council, rehab, and certain living arrangements.
There are also additional benefits with Uninsured and Underinsured coverage. For example, do you walk for or ride a bike for fun or exercise? Ever wonder what would happen if you were struck by vehicle and it was a hit and run? Uninsured motorist insurance will extend benefits that cover the damages you may suffer. The key to uninsured and underinsured coverage is you must not be negligent in the accident. If you were to hit another driver in the rear and he was uninsured your coverage would not be applicable. In essence you are suing your own insurance carrier in legal terms, Um/UIM coverage pays what a tortfeasor’s lability should pay, in addition to medical payments, the at-fault party could owe for pain and suffering, lost wages and other non-medical losses.
I know that everyone wants to save money but the most expensive policy is the one that doesn’t provide the necessary coverage when you need it the most. Don’t be penny wish and pound foolish speak to a knowledgeable agent who understands all the coverages needed to protect you and your family.