☰ ˟
Contact Us Today / 412.531.3111
Logo

What type of coverage do you need?
Home > Blog > Know Your Insurance: Auto
SUNDAY, MARCH 1, 2020

Know Your Insurance: Auto

 UM and UIM Coverage, Exclusions and Endorsements


Unfortunately, many people wrongly assume that auto and umbrella insurance policies will provide reimbursement for all aspects of an accident on the road. Instead, both of these policies cover your own liability and provide compensation to others in the event that you are responsible for an accident. However, if another driver causes an accident and doesn’t have enough insurance coverage to compensate you, your own auto or umbrella policies won’t be enough.

 

If another driver doesn’t have enough insurance coverage to pay for your medical bills, you could face extremely high costs or lengthy court battles. However, by purchasing stand-alone uninsured (UM) or underinsured (UIM) motorist coverage—or by adding the coverage as an endorsement to your umbrella policy—you can be fully protected on the road.

 

Why Isn’t There Coverage?

Auto insurance is required in most states because all drivers on the road essentially put their trust in one another to not get into an accident. As a result, your regular auto insurance policy will reimburse another driver if you are the cause of an accident. In a similar way, umbrella policies provide you with excess coverage for a number of different personal liabilities.

However, if another driver doesn’t have enough coverage to fully pay for the damage of an accident, you could be left to pay the bills yourself.

  • Uninsured motorists simply don’t purchase an auto insurance policy. As a result, if they cause an accident, there isn’t a policy in place to reimburse you for medical bills. According to the Insurance Research Council, about 1 in 8 drivers in the United States are completely uninsured.
  • Underinsured motorists have an insurance policy, but don’t have a high enough coverage limit to pay for all of the expenses of an accident. Some states only require a small amount of coverage, which won’t be enough to pay all of your medical expenses.

It’s also important to know that hit-and-run accidents—those in which a driver flees—fall into the same category as uninsured motorists, as there is no insurance policy in place to cover the driver’s liability.

To protect yourself from these risks, it’s important to talk to your James L. Smith Insurance representative about a stand-alone policy or an endorsement to your umbrella coverage.

 

Coverage Specifics

Without UM or UIM coverage, you’re essentially paying more for the protection of strangers than you are for yourself and your family. And, although uninsured and underinsured drivers are all too common, many people believe that they’re already covered if someone else causes an accident.

UM or UIM policies are available, as are endorsements to umbrella policies that can protect you from uninsured or underinsured drivers. In fact, in many states, you may be required to purchase UM or UIM coverage. However, just like a normal auto policy, there are some aspects of this coverage that you should consider.

 

Depending on the state, you may only be required to purchase a small amount of UM or UIM coverage. However, since these policies will protect you and your family in the event of an accident, it’s generally a good idea to purchase the same amount of coverage as your regular auto policy. Coverage is also inexpensive, generally costing only 5% of your regular auto insurance premiums.

 

<comcast-business-link><comcast-business-link>Contact us today at (412) 531-3111 to examine your auto insurance coverage and ensure that you and your family are safe on the road.</comcast-business-link></comcast-business-link>

Posted 2:29 PM

Tags: auto insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2022
  • 2020
  • 2019

  • auto insurance(10)
  • safety(6)
  • homeowners(6)
  • discounts(3)
  • saving(2)
  • car insurance(2)
  • custom car(1)
  • uber(1)
  • discount(1)
  • student(1)
  • pittsburgh auto insurance(1)
  • breakdown(1)
  • homeowners swimming pool(1)
  • lightning(1)
  • pittsburgh(1)
  • tnc(1)
  • ride sharing(1)
  • pittsburgh auto claims(1)
  • underground(1)
  • full tort(1)
  • trampoline(1)
  • personal property(1)
  • claims(1)
  • limited tort(1)
  • pittsburgh car insurance(1)
  • lyft(1)
  • limits(1)
  • utility lines(1)
  • teen driving tips(1)
  • lawnmower(1)
  • umbrella insurance(1)
  • auto insurance pittsburgh(1)
  • teen driver(1)

View Mobile Version

Our Customer Feedback

Read More

Our latest blogs

  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
  • Carrier
James L. Smith Insurance
304 Cochran Road
Pittsburgh, PA 15228
James L. Smith Insurance Agency is a professional organization dedicated; to PROVIDE the best possible personal service to our Clients to keep them as long-term satisfied customers. To MAINTAIN a professional and efficient work environment which helps each person to achieve his or her personal goals. To DEAL with the public fairly and honestly and to be a respected member of the community.
We're here for you
Home Page/ About Us/ Contact Us/ Our Blog/ Latest News/ Refer A Friend
Quick Help Links
Quote Forms/ Service Forms/ File a Claim/ Make a Payment/ Insurance Glossary/ FAQs
Icon Icon
Icon Icon Icon
Social Icon Social Icon Social Icon
© Copyright. All rights reserved. Powered by Insurance Website Builder