What type of auto insurance should I have? The importance of UM/UIM coverage.

Many people believe they are fully covered if they have good liability coverage on their automobile. However, this type of coverage protects YOU financially if you are responsible for causing an automobile accident.

What many people do not realize is that they should have high uninsured/underinsured motorist ("UM/UIM") coverage as well. Why? The law in California requires drivers to have a minimum of $15,000 in liability coverage. If you are hit by someone who has the minimum insurance limit of $15,000, or worse, no insurance at all, what recourse do you have? A serious accident can cause thousands in medical bills, not to mention wage loss and pain and suffering. UM/UIM coverage is there to protect you in such a circumstance. You may proceed against your own insurance company for the limits of your own UM/UIM limit in these types of cases.

Example: You are in an accident and incur medical bills of $50,000. The person who caused the accident has only $15,000 in insurance. If you have $100,000 in UIM coverage, you collect the $15,000 from the defendant and then can collect the balance of $85,000 from your own insurance company.

The higher your UM/UIM limits are, the more protection you have. Of course, you hope never to be in a serious accident, but it is better to be safe than sorry and ensure you are fully protected. Call your insurance agent today to inquire about what type of coverage you have if you are unsure. Adding UM/UIM coverage to your policy generally will not be that expensive and is a wise investment.