When it comes time to purchase a car insurance policy, you will have to select your coverages.
You will start with the state requirements of coverages that typically include bodily injury (BI) and property damage (PD) liability coverages.
Beyond the legal requirements, you will then have to choose your limits and the other coverages that you want to have on your policy.
Two coverages that are highly recommended are uninsurance motorist (UI) and underinsured motorist (UIM).
UI is designed to help victims of car accidents. Not every driver on the road is following the law and carrying the legally required amount of car insurance coverage.
If they cause an accident, without insurance they may have no way to pay for the damages to your vehicle and your medical bills.
That is when UI kicks in. UI was designed to provide coverage if you get hit by a driver that does not have car insurance.
This coverage will help pay for the damages they caused so that you aren’t left paying for it yourself.
UIM is also designed to protect your interests if you get into an accident.
But, unlike UI, this coverage is for drivers that hit you that have car insurance.
And, some people only purchase the legal bare minimum, their car insurance may not cover all the damages and costs associated with the accident.
In those cases, you can use your UIM insurance to pay for any vehicle repairs, medical bills, and other costs associated with the accident.
Both insurance coverages are designed to protect you in an accident when the other driver does not have the insurance to pay for all the damages.
But, because one is specifically designed to cover the costs of being hit by a driver with no insurance and one is designed to help with drivers that do not have enough insurance, you need both.
UI and UIM can be activated for the same accident, so, the coverage levels will be different.
Because one really the key difference is that you will need a higher coverage limit for UI since it is for drivers that have zero insurance.
While the UIM coverage limit can be lower because the drivers will have some way to pay for the accident, even though it is inadequate.
These are just two of the policy coverages that you should consider when purchasing car insurance.
To get started, give us a call and speak to one of our friendly agents. We’ll ask a few questions and get to work putting together a couple of quotes.
Then we’ll make sure that we put a policy together that contains all the coverages you need, but at a price, you can afford.
We’ll answer any questions to help you pick which coverages are right for you.
The car insurance team can help, Contact us at Panorama now! We’ll be happy to explain all the different types of coverages available for vehicle owners.