What is UM/UIM coverage and why do I need it?
Most everyone knows what car insurance is. You pay a monthly premium to an insurance company, and in exchange that company agrees under contract to pay for the loss that occurs when you are involved in a motor vehicle accident. Mississippi law requires that licensed drivers maintain liability insurance, which provides coverage for the other car and/or driver when an accident is your fault. The minimum liability insurance coverage legally required in Mississippi is $25,000 per person and $50,000 per accident for bodily injury. But what happens if you are in a wreck that is not your fault, you are seriously injured, and the person who hits you doesn’t have enough insurance to cover your injuries? Or worse, what happens if the other driver has no car insurance at all? You might end up paying out of your own pocket for medical bills, wage loss, and pain and suffering caused by someone else’s negligence.
A 2015 study conducted by the Insurance Research Council estimated 13% of drivers, or nearly 1 in 8, are uninsured. That same year in Mississippi, the estimated percentage of uninsured drivers was almost double that – 23.7%. Who will make sure you are fairly compensated for your injuries if there is not enough insurance, or if there is no insurance coverage at all? That’s where UM/UIM insurance coverage comes in. UM/UIM stands for Uninsured/Under-insured Motorist and this coverage is automatic in Mississippi unless you specifically sign a waiver stating you do not want it. DO NOT ever sign this waiver. This coverage provides for you in those situations where someone else causes an accident and does not have sufficient insurance, or has no insurance. You should insure yourself through your policy for at least as much as you are insuring the other guy. After all, who are you more afraid will drive bad – you or the other person? Why not cover all your bases?
If you have been involved in a car wreck with an uninsured or under-insured motorist or you or a loved one have been injured in a car wreck in Mississippi, contact Chhabra & Gibbs, P.A. today. There is no fee to discuss your case. You can reach us by calling 601-948-8005 or by using our live chat on our website.