What a Rise in Underinsured Claims Means for You

Today, we're going to dive into an important topic that can influence the effectiveness of your auto coverage. It's about understanding your liability limits and the crucial role uninsured and underinsured motorist coverage plays. As we're noting a rise in underinsured motorist claims, we encourage everyone to review their policy to ensure adequate coverage.

Understanding Your Auto Coverage:

Auto insurance is not a one-size-fits-all product. Several critical components shape your policy, with liability coverage and uninsured/underinsured motorist coverage being significant.

1. LIABILITY LIMITS:

Liability coverage is fundamental in your auto policy. It covers bodily injury and property damage caused to someone else in an accident where you're at fault. The limit of this coverage refers to the maximum amount your insurer will pay for a claim. Always ensure your liability limits align with your financial situation.

2. UNINSURED AND UNDERINSURED MOTORIST COVERAGE:

Uninsured and underinsured motorist (UM/UIM) coverage steps in when you're in an accident with a motorist who is at fault but doesn't have enough, or any, insurance to cover the damages. This coverage is another layer of protection, ensuring you're not left financially strained due to someone else's negligence.

Matching Liability and UM/UIM Coverage:

An essential aspect to ensure when setting your auto coverage levels is to match your liability limits and your UM/UIM coverage. Doing so ensures maximum protection against any eventuality. Moreover, it's prudent to opt for coverage that exceeds your state's minimum limits for a significant level of protection.

The intention of insurance is to keep you financially secure in case of unforeseen mishaps. An accident involving an under or uninsured motorist can quickly escalate into a financial burden without the appropriate coverage in place. Manage this risk proactively by aligning your liability and UM/UIM coverage and by opting for more than the state minimum coverage if possible.

Feel free to reach out to us for any questions or if you want a review of your coverage limits. We're here to ensure your auto insurance provides you with the coverage you need for peace of mind during every journey. Have great adventures this weekend, knowing you and your vehicle are well protected. Drive safe!