Should You Have Uninsured or Underinsured Motorist Coverage in Pennsylvania?
When it comes to auto insurance, many Pennsylvania drivers focus on meeting the state’s legal requirements, often overlooking optional coverages that provide essential protection. Among these, Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages are two of the most valuable additions to any insurance policy. But are they necessary? Short answer: Yes. This article will explain what UM and UIM coverages are, their importance, and why they’re recommended for Pennsylvania drivers.
Understanding Uninsured and Underinsured Motorist Coverage
Before discussing why these coverages matter, it’s essential to understand what each one does and how they differ.
What Is Uninsured Motorist (UM) Coverage?
Uninsured Motorist (UM) coverage protects you when the at-fault driver in an accident doesn’t have liability insurance. Surprisingly, uninsured drivers are not uncommon—even though car insurance is legally required. If you’re hit by someone without insurance, UM coverage kicks in to pay for your medical bills, lost wages, and related damages.
Example:
You’re involved in an accident caused by an uninsured driver. Your medical expenses total $20,000. Without UM coverage, you would have to pay these costs out of pocket. With UM coverage, your insurance steps in to cover these bills.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured Motorist (UIM) coverage applies when the at-fault driver does have insurance, but their policy limits are too low to cover all your damages. This ensures that you’re not left paying the difference if their insurance falls short.
Example:
You’re in an accident caused by a driver with liability insurance capped at $25,000, but your medical expenses total $50,000. Without UIM coverage, you’d need to cover the remaining $25,000 yourself. With UIM coverage, your insurance fills this gap.
The Importance of UM and UIM Coverage in Pennsylvania
Pennsylvania’s insurance landscape has unique features and regulations that make UM and UIM coverages especially important. Here’s why:
Pennsylvania Is a No-Fault Insurance State
Pennsylvania operates under a no-fault insurance system, which means your own insurance policy will typically cover your medical expenses regardless of who caused the accident. This is done through what’s called Personal Injury Protection (PIP). However, PIP doesn’t cover everything. It’s here that UM and UIM coverages become critical—they provide additional financial protection when the at-fault driver’s insurance is nonexistent or insufficient.
Not All Drivers Have Adequate Insurance
Even though Pennsylvania law requires drivers to carry liability insurance, not everyone complies. According to recent studies, roughly 1 in 8 drivers in the United States are uninsured. Additionally, many drivers only carry minimum liability limits, which often aren’t enough to cover severe accidents. With UM and UIM coverage, you protect yourself from these risks.
Medical Expenses Add Up Quickly
Car accident injuries can lead to staggering medical bills. The costs of hospitalization, surgery, physical therapy, and other treatments can easily exceed the state’s minimum liability limits. Without adequate coverage, you’d be left paying these bills yourself.
Why UM and UIM Coverage Are Worth Adding to Your Policy
Here are key reasons why you should consider both UM and UIM coverage:
1. Protect Yourself Against the Unexpected
Accidents are already stressful without the added burden of financial strain. UM and UIM coverage ensure that you’re financially protected if the at-fault driver doesn’t have adequate insurance. This peace of mind is invaluable.
2. It’s Affordable Coverage with Big Benefits
One of the best things about UM and UIM coverage is that they’re relatively inexpensive to add to your policy. Given the protection they offer, they provide excellent value for the cost.
3. You Can Avoid Major Out-of-Pocket Costs
Without UM or UIM coverage, you could face tens of thousands of dollars—or more—in uninsured expenses. Adding these coverages ensures that unexpected medical costs don’t deplete your savings or leave you in debt.
4. It Complements Your No-Fault Coverage
While Pennsylvania’s PIP covers immediate medical expenses, it’s not unlimited, and it doesn’t address all areas of financial loss, such as pain and suffering. UM and UIM coverages fill this gap.
How to Add UM and UIM Coverage to Your Policy
If you’re unsure whether your current auto insurance policy includes UM or UIM coverage, check with your insurance agent. Most policies allow you to customize your coverage limits to fit your needs and budget. While you aren’t legally required to carry UM or UIM coverage in Pennsylvania, choosing to do so is a decision you won’t regret.
Recommended Limits
Experts often recommend selecting coverage limits that match your liability coverage. For example, if your bodily injury liability limit is $100,000 per person, it’s wise to have UM and UIM coverages with similar limits.
Final Thoughts
While Pennsylvania’s no-fault insurance system offers some protection, it doesn’t eliminate the need for additional safeguards. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages provide critical financial protection and peace of mind in situations where the at-fault driver lacks sufficient insurance.
If you’re looking to enhance your auto policy, start by adding UM and UIM coverage. They’re cost-effective, easy to include, and ensure you’re protected from the unexpected. Don’t wait until it’s too late—review your policy today and speak with your insurer to make sure you’re adequately covered.