The primary purpose of Uninsured Motorist (UM) insurance is to provide Bodily Injury coverage for medical bills and loss of income (in some states, UM also covers physical damage to your car). UM offers valuable protection under both your Business and Personal Auto policies.
Here’s how UM works: Say you’re injured in an auto accident, and the other driver is at fault. Normally, you’d collect your bodily injury bills from the other party’s Auto insurance. However, it turns out that he doesn’t have Auto coverage — or enough coverage, if he is an underinsured motorist (UIM). This would leave your medical bills unpaid, even though you were the innocent victim.
When you have UM coverage, your insurer will step in and provide the same benefits you would have received from the at-fault driver’s policy. Although limits vary by state, in general, you’ll receive compensation for injury-related losses.
Even though you might have Medical Insurance and/or Disability Income insurance that would also pay for your injuries in a UM or UIM situation, carrying this coverage on your Auto policy often offers a better deal. Coverage might be broader (for example, your Health insurance won’t cover pain and suffering), and there are usually no deductibles or coinsurance provisions.
Call us today about UM and UIM options for your Business Auto coverage. We’ll be glad to review your options for you.