Friday, October 23, 2015

What is Uninsured and Underinsured Motorist Coverage?

You have just been in an auto accident.  The driver that hit you doesn’t have insurance at the Lake of the Ozarks.  How will the cost of the accident be paid?  Most states have some sort of criminal fine for driving without insurance; however this will not help you with your loss.  

Uninsured Motorist Coverage 

If you are ever in a car accident with someone that does not have insurance you may be able to get compensation from your own insurance under the Uninsured Motorist coverage.  Uninsured Motorist (UM) doesn’t normally cover damage to your car; however it will generally cover medical bills, wage loss, and loss of earnings capacity.  Damage to your car would be covered under your Collision coverage subject to a deductible.

Underinsured Motorist Coverage

Underinsured Motorist (UIM) coverage is similar to Uninsured Motorist; however this limit is for when you are hit by an insured driver, but their limits are not enough to pay damages for the entire loss.  For example: you have a $300,000 UIM limit, the other driver has liability limits of $50,000 per person and your damages are $150,000.  You would receive $50,000 from the other carrier and $100,000 from your carrier for a total of $150,000.  Some other states will allow you to stack limits while Missouri allows up to the limits on your policy for all reimbursements that are made.

Adding UM and UIM to Your Policy

There is a charge to add UM and UIM coverage to your policy and the cost to increase these limits is normally very reasonable.  Unfortunately, many people have UM and UIM limits much lower than their primary liability limits.  Often policies with liability limits of $1,000,000 have UM/UIM limits of $25,000.  Why not protect the people inside your car as much as you protect those outside your car?  The additional Lake of the Ozarks insurance coverage is worth the minor cost.

Be sure to talk to your insurance agent at the Lake of the Ozarks about your specific situation.  Steve Naught is a Certified Insurance Counselor with the Naught-Naught Agency in Osage Beach.  Give him a call at 573-348-2794 or fill out our online quote request

Request a Free Quote Online! Contact Insure the Lake today for all your Lake of the Ozarks insurance needs! 

About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.

Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral