When we get behind the wheel, we assume that other drivers on the road are following the same safety guidelines, including having the necessary insurance coverage. However, that assumption may be dangerously wrong. Unfortunately, the number of uninsured drivers and underinsured drivers is on the rise, leaving responsible drivers exposed to significant financial risks.
In the unfortunate event of an auto accident, the financial aftermath can be devastating, especially if the at-fault driver is inadequately insured or worse, not insured at all. Understanding how to shield yourself from uninsured drivers is crucial for safeguarding your finances and ensuring peace of mind. Thankfully, there are effective measures to protect yourself from these risks, with one of the most potent being the acquisition of uninsured and underinsured motorist (UM/UIM) coverage.
The Growing Problem: Uninsured Drivers and Underinsured Drivers
The issue of auto accidents involving uninsured and underinsured drivers is a growing concern across the United States. It’s important for all drivers to be aware of this trend and take steps to protect themselves.
Across the United States, the number of uninsured drivers is increasing. According to the Insurance Information Institute, “a 2023 report by the Insurance Research Council found that 14% of motorists, or about one in seven drivers were uninsured.”
Even more troubling – the number of underinsured drivers with insurance but insufficient coverage limits to pay for serious auto accident injuries or damage also continues to rise. According to a 2023 report from the Insurance Research Council, 15.7% of drivers in the U.S. have insufficient coverage. Several factors contribute to this alarming trend, including rising insurance premiums, economic challenges, and lapses in coverage.
Liability Limits Fall Short in Many States
In many states, including Pennsylvania, the liability limits required by law are simply too low to cover all the costs associated with a serious auto accident. According to the Pennsylvania Department of Transportation, all motor vehicles subject to registration must have liability insurance. You are complying if you have liability insurance in PA in the following amounts:
- $15,000 for injury or death of one person in an accident
- $30,000 for injury or death of more than one person in an accident
- $5,000 for damage to the property of another person
Those amounts are deficient by today’s standards, leaving thousands of Pennsylvanians driving without adequate coverage. This can be devastating in the event of a car accident.
Uninsured Motorist (UM) &Underinsured Motorist (UIM) Coverage
Relying on other drivers to carry adequate coverage is insufficient to protect yourself financially. This is where Uninsured Motorist (UM) coverage and Underinsured Motorist (UIM) coverage become essential.
Uninsured Motorist (UM) Coverage protects you in cases where you are hit by a driver who has no insurance at all. This could be a hit-and-run accident or an accident with a driver who neglected to purchase insurance.
Underinsured Motorist (UIM) Coverage comes into play when the at-fault driver has some insurance, but their policy limits are too low to cover the full extent of your losses. For example, if you were involved in an accident where the other driver had the state minimum coverage of $15,000 and your injuries and damages totaled $50,000, UIM coverage would help bridge that gap.
Together, UM and UIM coverage are designed to protect you in situations where the responsible party either has insufficient liability coverage or no coverage at all. These coverages can be a financial lifeline after a serious car accident.
Why Minimum Liability Limits Are Insufficient
It’s important for many drivers to realize that the minimum liability limits mandated by their state may not be sufficient to cover the costs associated with a severe accident. Costs associated with medical expenses, vehicle repairs, lost wages, and pain and suffering can quickly accumulate. If the at-fault driver’s liability coverage is insufficient, these costs may end up on your plate.
Having adequate UM/UIM coverage is not just a precaution, it’s a proactive step towards shielding yourself from these financial risks.
Tips for Checking Your Insurance Policy
Reviewing your auto insurance policy carefully is essential to ensure you’re adequately protected. Here are a few tips for checking your coverage:
- Review Your Current Liability Limits: The first step is to examine your existing coverage closely. What are your current liability limits for bodily injury and property damage?
- Check for Uninsured and Underinsured Motorist Coverage: While UM/UIM coverage is required in some states, it may be optional in others. If you’re not sure whether you have this coverage, now is the time to check your policy documents. If you don’t have UM/UIM coverage, consider adding it.
- Assess Your Coverage Limits: Just like liability coverage, your UM/UIM coverage comes with limits. Evaluate whether your current UM/UIM limits are high enough to protect you in the event of a serious accident.
- Consider Additional Coverage: In addition to UM and UIM, you should review your First Party Benefits also known as Personal Injury Protection (PIP) which includes medical benefits, income loss benefits, accidental death benefits, funeral benefits, and provide coverage regardless of fault .
Speak with Your Insurance Agent
Insurance policies can be complex, and it’s easy to overlook important details. That’s why speaking with your insurance agent is an excellent idea to ensure you’re adequately covered. Ask your agent to explain the details of your UM and UIM coverage and inquire about the cost of increasing your coverage limits. Many agents can provide personalized advice based on your driving habits, risk factors, and budget. Ask questions or request a policy review to ensure you’re fully protected.
Shopping Around for Better Rates
If you find that your current insurance policy doesn’t offer adequate UM/UIM coverage or if you’re concerned about the cost, it may be time to shop around for a better rate. The insurance market is competitive, and many companies offer discounts or lower premiums for drivers who bundle policies, have a clean driving record, or take advantage of safety features like anti-theft devices or telematics programs.
Be sure to compare quotes from multiple insurers and review their coverage options to find a policy that offers the protection you need at a price you can afford.
Protect Yourself from Uninsured Drivers
With the rise of uninsured and underinsured drivers, protecting yourself on the road is more important than ever. Minimum liability limits in many states are insufficient to cover the full cost of damages in a serious auto accident, leaving you financially vulnerable if the at-fault driver lacks sufficient coverage.
By purchasing Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage, reviewing your policy, and speaking with your insurance agent, you can ensure you’re adequately protected. Taking the time to assess your coverage now can save you from potentially devastating financial consequences down the road.
Contact Distasio, Kowalski & Yelen if You’ve Been Injured in an Auto Accident
The DKY Auto Accident Firm can ensure you get the best representation and compensation for your injuries in the event of a serious accident. DKY Law’s experienced car and truck accident attorneys are available to meet with you to discuss the best course of action after an auto accident.
Michael J. Kowalski, a partner with DKY Law Firm, has been representing individuals and their families in personal injury matters for 30 years. These include cases involving medical malpractice, medical errors, birth injuries, and auto and truck accidents, among others. If you are injured, you want Attorney Kowalski and the DKY Law Firm fighting for you. Contact Attorney Kowalski today
Jeffrey A. Yelen, a partner with DKY Law firm, has been representing clients with a broad range of legal issues for over 25 years. These include cases involving Elder Law, Personal Injury, Medical Malpractice, Workers Compensation, Wills, Trust & Estates and Powers of Attorney and the general practice of law. If you are injured, you want Attorney Yelen and the DKY Law Firm fighting for you. Contact Attorney Yelen today.
Distasio & Kowalski LLC is proud to announce that Michael J. Kowalski, a partner in the firm, was selected among America’s Top 100 High Stakes Litigators® for 2021. Less than one-half percent (0.5%) of active attorneys in the United States are selected for this honor. Attorney Kowalski was one of only 100 attorneys in Pennsylvania selected for this distinction which recognizes the best trial lawyers in the nation. It is his 5th consecutive year for selection. Attorney Kowalski was chosen for attaining a high level of excellence in medical malpractice litigation and personal injury litigation.