What is uninsured motorist coverage (UM) and why you need it?

Think of UM coverage as insurance for other people’s lack of responsibility. Without it, if you’re injured by an uninsured or hit-and-run driver, you may have little to no financial recovery. Underinsured Motorist (UIM) coverage is very similar and protects you if you're hit by a driver who has insurance, but not enough...maybe minimum limits of $25,000. Even a moderate accident can result in tens of thousands of dollars in medical bills and lost wages. An ambulance ride alone can cost $2,000+ and an emergency room examination could be twice that. Especially if you have X-rays, MRI or CT scans, you could leave with a $10,000 bill. If you need follow up care, it keeps adding up. UM and UIM help cover those costs. If you have auto liability insurance (and you are required to if you have a car), you were offered UM/UIM coverage to accept or decline. A lot of folks decline it to save a buck, but it is comparatively cheap. You can choose the amount of overage up to your liability limits. If you're of the opinion that there are a lot of bad drivers out there, UM/UIM is the main reason to have high limits. Bad drivers may also be bad life-decision makers when it comes to their own financial responsibility with auto insurance. UM/UIM is your hedge bet that if you're in a wreck, it's likely to be someone else's fault who is likely to not have adequate coverage to compensate for the damage and injury they cause.