Uninsured / Underinsured Motorist

When you buy underinsured motorist insurance, you’ll need to choose a coverage limit. In many cases, you’ll want this coverage’s amount to match your bodily injury liability limits. So, if your bodily injury liability coverage limit is $200,000, then you’ll want at least that for your underinsured motorist coverage.

This coverage helps pay for your medical expenses if a driver hits you that doesn’t have enough insurance. This includes a range of accidents that involve:

• A hit-and-run
• Someone rear-ending you
• Head-on collisions
• A driver backing up into you
• Getting sideswiped by another car

Your health insurance may overlap with UMBI and UIMBI coverage. In states where UMBI and UIMBI are optional, there are a few things to consider before passing on the coverages:

• Will your health insurance cover injuries sustained in an auto accident? Medicare and Medicaid may not pay out until other sources of insurance have been exhausted. If you have private health insurance, check with your health insurer to find out how medical expenses resulting from a car accident are covered.
• Does your health insurance have a deductible? Generally, there’s no deductible with UMBI and UIMBI. If you have a deductible with your health insurance, and it’s high, it may be beneficial to carry UMBI and UIMBI.
• Will there be passengers in your car that don’t have their own health insurance? Your UMBI and UIMBI coverage will protect those passengers.
• Does your health insurance cover lost wages? Your UMBI and UIMBI sometimes will, as well as other types of damages not protected under some health insurance plans.