How to Stack Uninsured Motorist Insurance Coverage
May 13, 2022
Do you know what happens when the driver who hit you is an uninsured or underinsured motorist?
When it comes to liability insurance coverage, many drivers (and especially those who live in states that only require minimum amounts of personal insurance protection) do not fully understand the importance in knowing how to stack uninsured motorist insurance coverage with their existing policy. So, when they are involved in an accident that was not their fault, they are often surprised that an irresponsible driver could have triggered such a nightmare of unpaid bills.
Uninsured motorist (UM) insurance and underinsured motorist bodily injury (UMBI) insurance options were created to fill the gap between your costs and any at-fault motorist’s inability to pay for ongoing major medical expenses. By stacking uninsured motorist insurance coverage with your existing auto insurance policy, it could save you from having to shell out money to pay for expenses related to an accident that you didn’t cause.
Underinsured Motorists Lead to Uninsured Expenses
Uninsured or underinsured motorist insurance coverage is one of the most important policy options you can buy, as it pays for more expensive medical costs when the negligent driver doesn’t have enough liability coverage.
UM insurance coverage is especially important for residents in a state like Florida where the uninsured rate is an estimated at 27% of all the drivers on the road. If you happen to be involved in a horrific crash headed home today, there is a one in four chance the at-fault driver will not have the insurance coverage needed to pay for all of the medical expenses you could incur. In addition, drivers in Florida can reject buying uninsured motorist coverage when they purchase personal insurance protection.
Whether you are in favor of being a PIP insurance state or not, really doesn’t matter when it comes to protecting your financial assets. After all, many insured motorists in the Sunshine State are very likely underinsured when it comes to liability insurance coverage.
Why Add Uninsured Auto Insurance Coverage?
For starters, even insured drivers in Florida are only required to carry a minimum amount of auto insurance. The state does not require motorists to purchase sufficient amounts of bodily injury insurance or uninsured motorists insurance to protect against major expenses related to injuries. If you only meet Florida’s minimum requirements for auto insurance, your coverage could be woefully inadequate in a collision with an under insured driver. So, knowing how to stack uninsured motorist insurance can protect your personal assets from risk, even in the event of a lawsuit.
To simplify the claims process following a car crash, Florida enacted laws to become a “no fault” car insurance state. That means each driver’s PIP personal insurance policy covers their respective expenses following one of the 500 car crashes that occur every day. It is believed the PIP insurance settlement process is more efficient, and in “most cases” involving a Florida fender bender, this is probably true. But, when you stack uninsured motorist insurance coverage with your own policy, you can relax knowing you’ve got “the worst case scenarios” covered too.
Without doubt, the best protection against an uninsured or underinsured driver is to purchase additional liability coverage. That way you’ll have the insurance you need to pay for your immediate (and future) medical expenses, at least up to the UM policy limits. Even if your insurance company seeks action for a third party recovery on your behalf, you might be disappointed by the actual dollar amount of the total burden that was recovered. Fact is a majority of Floridians are at risk of a being in a collision with an underinsured driver every day.
Statistically, the average individual can expect to be involved in about four auto accidents during their lifetime and Florida is among the top ten states in the nation for auto accidents. To find out if you have the auto insurance protection to avoid a financial disaster, contact Nsurance Nation today for a free policy review.
