Why you need uninsured motorist coverage

| Auto insurance, Auto Safety.

Why you need uninsured motorist coverage

We understand that personal auto insurance can be expensive. Because of the cost, consumers are often tempted to strip out important coverage without fully understanding the consequences. A good example of that is uninsured motorist coverage, which pays for bodily injury in the event you are hit by a driver with no insurance, or inadequate insurance (underinsured motorist). Removing this coverage is a bad idea, and here are several reasons why you need uninsured motorist coverage.

The percentage of uninsured drivers nationally is around 13%. Nevada is slightly lower at around 12.2%, thanks in part to an effective insurance verification system run by the DMV.  Still, 12.2% is higher than many of our neighboring states such as Utah (5.8%), Arizona (10.6%), and Idaho (6.7%). This means that slightly more than 1 in 10 vehicles on Las Vegas streets are completely uninsured. In addition, many drivers carry only minimum limits of liability coverage ($15,000 per person, $30,000 per accident), which means they are probably underinsured for all but the smallest accidents.

Uninsured (including underinsured) motorist coverage protects you from the “bodily injury” and financial loss if you are involved in an accident with an uninsured driver. Bodily injury includes medical bills, but can also mean pain and suffering, lost wages, and loss of consortium. Uninsured motorist coverage also protects you out of the vehicle as a pedestrian or bicyclist struck by a motor vehicle.

We recommend you purchase uninsured motorist coverage at a limit equal to your liability coverage. You may also have the option of purchasing a personal umbrella policy that includes $1M of uninsured/underinsured motorist coverage.

Given the number of uninsured drivers on the road in Las Vegas (any many other parts of the country), we think buying adequate uninsured motorist coverage is critical to protecting yourself, and other occupants of your vehicles. There are many ways to save on auto insurance premiums, but removing uninsured motorist coverage should never be one of them.

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