With simple toys having instruction manuals 60 pages long and cell phones that allow you to take pictures, videos, browse the internet and update your social media status all while having a triple, decaffeinated, jumanji blend medium roasted 160 degree cup of coffee. Why can’t we find some simple answers to things that are supposed to make our life easier or protect us in case of an accident, like “what is uninsured motorist insurance, what does it cover and when do I need it?”
I don’t have the answers to everything, but I do have a few answers to somethings. Uninsured Motorist, often referred to as UM, UMBI, UMPD and/or UMCDW, again see how something that should be simple just went in the wrong direction so quickly, well, it’s really not that complicated when it is broken down to its basics.
When it is being offered and you asked a basic question; “what does uninsured motorist insurance cover?” The reply you get can sometimes make you feel as if the insurance agent or insurance representative, either does not want you to know what you are buying, or doesn’t know how to explain it themselves. Whatever the case may be, by the time you are finished reading this you can feel confident that you have an essential understanding, which will give you an upper hand in your decision making process; ” to get or not to get uninsured motorist insurance, that, is the question!”
So let’s start with breaking down UM, UMBI, UMPD or UMCDW, well there is not much to break down these are all acronyms for forms of uninsured motorist insurance. “UM” this one is easy its uninsured motorist. “UMBI” is not too much different, its uninsured motorist bodily injury. See how easy this is? “UMPD” means uninsured motorist property damage, yes it is for fixing your vehicle. If you got those down you are on your way to becoming an insurance guru. The last one is a little trickier, “UMCDW” or uninsured motorist collision deductible waiver, which waives the collision deductible. So how do you feel with this little bit of knowledge, a little empowered with understanding UM?
So now you have the basic break down of UM and the different ways it can be presented, so what does it cover?
In most cases it can be explained very easily. What UM covers is you, your passengers and your vehicle. So when does it go into effect? The best way to explain it is by using an example.
Heaven forbid you are in an accident, the accident was not your fault, but the person who was at-fault for the accident does not have insurance. Bingo! Here comes UM to the rescue. Since the person who was at-fault for the accident did not have insurance, your UM comes to save the day. In most cases, in most states, uninsured motorist helps pay for your medical cost, court cost, legal fees and also helps fix or replace your car up to its ACV (actual cash value) not to exceed the maximum benefits of the uninsured motorist limits listed on your policy.
With this little bit of knowledge I hope you can make a better decision when considering Uninsured Motorist Insurance, not only when shopping around for an insurance quote, but when you are choosing what types of insurance are right for you to buy.