When you sign up for insurance, there is always a bunch of paperwork to fill out. But there’s one form that you should never sign. David Greene from the law firm of Greene & Phillips is here to explain what a UM Waiver is and why someone should not sign it.
You may be handed one to sign when you are buying insurance. You may not know what it is, but it’s always a bad idea to sign it. The insurance salesman may say it will save you a little money, but signing it could cost you tens of thousands of dollars if you are hit by someone without insurance or someone who doesn’t have enough insurance.
What is Uninsured Motorist Coverage and how is it different from liability insurance?
Liability insurance is required by law, and if you CAUSE a wreck, it pays the other driver for the damage to the vehicle and their medical bills. If you only have liability insurance and don’t have UM coverage, and you are hit by someone who doesn’t have insurance, you will be out of pocket for your vehicle damage, your medical costs, and any other costs because of the accident.
UM coverage covers you in case someone hits you without insurance, or with insufficient insurance.
A recent study showed that one in four vehicles are not insured. If one of them hits you and causes damage, you will be stuck with the bill without UIM coverage.
Will you explain the difference between UNinsured and UNDERinsured coverage?
Uninsured motorist coverage covers you the driver who caused the wreck, does not have insurance. Underinsured motorist covers whatever expenses are above what the other driver’s insurance has. So if the other driver only has $25,000 in coverage. and they cause more than that in damage, then your underinsured motorist coverage would make up the difference, up to the total amount of coverage that you have.
How much Uninsured Motorist Coverage should you have?
You should always have as much Uninsured Motorist coverage as you do liability insurance. If all you can afford is the 25/50 minimum, you want to make sure you have 25,000 in UM. If you you have 50/100 or 100/300 go ahead and make sure you UM matches that first number
What’s the cost of this type of coverage?
This is the cheapest insurance you can buy. For a low cost plan, this probably will only add $15-20 to your policy every 6 months.
A lot of plans offer medpay as well as UM. Which is more important
If you already have medical insurance, you probably do not need medpay, as that is duplicate coverage. For most people who already have insurance, the UM is going to provide you much more coverage.
Very important, look at your contract, and make sure you did not sign the waiver to decline UM insurance. If someone has questions about their car insurance coverage, can they contact Greene & Phillips for clarification?
We would be glad to help anyone find out if they have the a good amount of insurance.