In a tough economy, people, unfortunately, cut back on the amount of their automobile insurance coverage, and in some cases, drop such coverage entirely in an attempt to save money. Also, because we are a “border” state, we have a number of drivers without Arizona licenses and/or insurance coverage, while others again still have only minimum coverage.
Uninsured (UM) and Underinsured Motorist coverage (UIM) are optional coverages that you can purchase to help you if you are injured through the negligence of another driver that is either uninsured or underinsured. Uninsured means they have no insurance, while Underinsured means that while they do have some liability coverage it is insufficient to cover your damages (medical, lost income, pain & suffering, etc).
We recommend that you always purchase UM & UIM coverage and that you buy coverage equal to your liability coverage. After all, don’t you want to protect your own loved ones as much, if not more than, a total stranger that you might cause injury to?
Because an uninsured driver will also not have any coverage to pay for the repair of your vehicle, we also recommend that you maintain collision coverage on your own car even after it is paid off and owned outright. The measuring stick should be could you afford the down payment on a replacement vehicle if yours’ was totaled in a motor vehicle collision?
Remember. Car crashes can be very complex. Make sure you protect your rights. Get the facts. Stop guessing.