If you are a driver in the state of Indiana, you are required to carry certain types of car insurance, including both bodily injury liability and property damage liability coverage. Thus, you assume that every driver on the road is carrying at least the required amount of insurance. Unfortunately, this is not always the case. To protect yourself from drivers who don’t adhere to minimum insurance coverage requirements, as well as those who purchase only the minimum amount required, you need uninsured/underinsured motorist coverage, or UIM. Continue reading to learn more about this important topic.
UIM Basics
Uninsured/underinsured motorist insurance applies when someone who does not have insurance causes injury or property damage to you or someone else in your vehicle. This type of insurance may also apply if the at-fault driver’s policy does not include enough coverage to pay the full amount of your losses. In this case, UIM coverage will make up the difference up to the limit of your UIM policy.
Like a standard liability policy, the limits of a UIM policy are broken down into smaller components. In most cases, policies are written to include a limit on UIM bodily injury for one person on a crash, a total limit on UIM bodily injury for a single crash and a limit on UIM property damage coverage.
Should I Purchase UIM?
Although several states require motorists to purchase UIM coverage, Indiana is not on the list. Thus, the decision to purchase this type of coverage is entirely yours. However, the state of Indiana does require auto insurance companies to offer you UIM coverage when you purchase your standard policy, and you must waive your right to purchase UIM in writing.
Even though UIM coverage is not required by Indiana law, purchasing this type of insurance is usually in your best interest. Without it, you may not have the protection you need in the event of an accident. For example, if a driver who has not purchased any auto insurance causes an accident that injures you and a passenger, your only option will be to try to collect directly from the driver. If the driver has limited means, your ability to collect will be severely limited as well.
How Much UIM Do I Need?
Determining how much UIM to purchase can be challenging. While lower policy limits may make your premiums more affordable, they won’t provide you with as much protection as a policy with higher limits would. To make the best decision for your needs, talk your situation over with a qualified insurance agent. An agent can help you weigh your options and make an informed choice.
Contact Tolbert Tower Insurance
For more drivers, UIM coverage is a smart investment that will provide much-needed protection against irresponsible and underinsured drivers. To learn more about this type of coverage and/or to obtain a quote specific to your situation, please contact Tolbert Tower Insurance today. We will be happy to help you find the UIM policy that works best for you.
