Integrated Insurance Advisors LLC

975 Nantahala Dr
Chesnee, SC 29323

Insurance Blog

Why do I need underinsured car insurance?

Underinsured Car Insurance

Simply put, underinsured car insurance coverage protects you from other drivers carrying only the minimum auto insurance.  Without underinsured insurance, you will be responsible for paying for medical bills and property damage which exceed the at fault driver’s coverage. 

For example, the average new car price is over $47,000 according to Car and Driver and the average used car price is over $24,000 according WJBF in Augusta.

State minimums only require, a driver to carry $25,000 of property coverage.  Should you and your new vehicle, be the victim of an accident with someone carrying state minimim coverage, you will still be responsible for the difference, unless you carry underinsured motorist coverage.

More Information

Underinsured car insurance is a crucial component of an auto insurance policy that can provide significant financial protection in the event of an accident involving a driver with insufficient coverage. It is designed to cover the policyholder and passengers in their car for medical bills, lost wages, pain and suffering if the at-fault driver does not have adequate insurance to pay for the damages they’ve caused. There are several reasons why having underinsured car insurance is essential, and this article will discuss five of them.

  1. Protects against drivers with inadequate coverage: Despite the fact that most states require drivers to carry a minimum amount of liability insurance, some drivers choose to carry the bare minimum or no insurance at all. In such cases, if you are involved in an accident with an underinsured driver, your underinsured motorist coverage will step in to cover the difference between their policy limits and the actual cost of your damages.
  2. Covers medical expenses: In the event of a serious accident, medical expenses can quickly add up, especially if multiple parties are injured. Underinsured motorist (UIM) coverage helps pay for medical bills, rehabilitation costs, and ongoing care that may be needed as a result of injuries sustained in an accident caused by an underinsured driver.
  3. Compensates for lost wages and pain and suffering: In addition to medical expenses, UIM coverage can also provide compensation for lost wages, pain and suffering, and other non-economic damages resulting from an accident with an underinsured driver. This is particularly important if the injuries sustained are severe and have long-term consequences on your ability to work and maintain your quality of life.
  4. Provides financial security: Accidents can lead to significant financial strain, especially if the at-fault driver does not have adequate insurance to cover the damages. Underinsured motorist coverage helps to alleviate that financial burden by ensuring that you are not left to cover the difference between the at-fault driver’s policy limits and the actual cost of your damages. This added level of protection can provide peace of mind and financial security in the event of an accident.
  5. Supplement to health insurance: While health insurance can cover some medical expenses resulting from an accident, it may not cover everything. Underinsured motorist coverage can serve as a valuable supplement to your health insurance, filling in the gaps and providing additional financial support for accident-related expenses.

In conclusion, underinsured car insurance is a vital component of a comprehensive auto insurance policy. It protects against drivers with inadequate coverage, covers medical expenses, compensates for lost wages and pain and suffering, provides financial security, and serves as a supplement to health insurance. By including underinsured motorist coverage in your auto insurance policy, you are taking a proactive step towards safeguarding your financial wellbeing and ensuring that you and your passengers are protected in the unfortunate event of an accident with an underinsured driver.