Insurance is a fundamental aspect of financial planning and protection, offering a safety net when the unexpected occurs. While most people are familiar with typical auto, health, and home insurance, there’s a lesser-known but absolutely essential crucial form of coverage: uninsured and underinsured insurance. In this article, we will explore the importance of uninsured and underinsured insurance and why it should always be a part of your overall insurance portfolio.
What Is Uninsured and Underinsured Insurance?
Uninsured and underinsured insurance, often abbreviated as UM/UIM coverage, is a component of auto insurance that provides financial protection in situations where you’re involved in an accident with a driver who either doesn’t have insurance (uninsured) or has insufficient coverage (underinsured) to pay for your losses arising out of an accident, such as medical expenses and lost wages.
The Alarming Statistics
Before we delve deeper into the importance of UM/UIM coverage, let’s take a moment to grasp the magnitude of the problem. According to the Insurance Research Council, around one in eight drivers in the United States is uninsured. Furthermore, even if a driver is insured, they may carry only the minimum coverage required by law, which may not be sufficient to cover your expenses in a severe accident.
Do I Need Uninsured and Underinsured Insurance?
- It Protects You in Unpredictable Situations
Accidents are, by nature, unpredictable. You may follow all of the traffic rules and drive responsibly, but that in no way guarantees that you won’t encounter uninsured or underinsured drivers. UM/UIM coverage acts as a financial safeguard, ensuring you won’t be left to bear the costs if you’re involved in an accident with an uninsured or underinsured driver.
- It Covers Medical Expenses
Injuries sustained in a car accident can lead to exorbitant medical bills. Without adequate coverage, you may have to pay for your medical treatments out of pocket, potentially causing significant financial strain. UM/UIM insurance can cover these medical expenses, allowing you to focus on your recovery rather than be overwhelmed by your bills.
- Peace of Mind
Knowing you have UM/UIM coverage can provide peace of mind. You can drive with confidence, knowing that even if you encounter a driver without insurance or with inadequate coverage, you won’t be left in a dire financial situation that is not your fault.
Have you been involved in an auto accident with an uninsured or underinsured motorist and need help with pre-settlement funding? Oasis is here to help!
How to Obtain Uninsured and Underinsured Insurance
Getting UM/UIM coverage is relatively straightforward. It’s typically offered as an optional add-on to your auto insurance policy, and is often surprisingly affordable. To ensure you have adequate protection, consider the following steps:
- Contact Your Insurance Agent: Reach out to your insurance agent or company and inquire about UM/UIM coverage options. They can explain the different levels of coverage available and help you choose the one that suits your needs.
- Determine Coverage Limits: You’ll need to decide on the coverage limits for your UM/UIM insurance. Higher coverage limits offer more protection but come with higher premiums.
- Review Your Overall Insurance Portfolio: Ensure that your UM/UIM coverage aligns with your other insurance policies, such as liability and comprehensive coverage. A well-rounded insurance portfolio provides comprehensive protection.
- Factor in State Requirements: Some states may have specific requirements or regulations regarding UM/UIM coverage. Be sure to understand your state’s rules to comply with legal obligations.
How Pre-Settlement Funding Can Help
In situations where you find yourself in an accident with an underinsured or uninsured driver, the financial strain can be particularly overwhelming. This is where pre-settlement funding can come to your aid. Pre-settlement funding, sometimes referred to as a lawsuit loan or legal funding depending on the circumstances, provides you with funds in consideration of the potential settlement you may receive from a personal injury lawsuit resulting from the accident. It can help cover immediate medical bills, property damage costs, and daily living expenses while your case is being litigated. This financial support ensures that you’re not left in a precarious situation due to someone else’s lack of insurance coverage. Pre-settlement funding allows you to focus on your recovery and the legal process without worrying about mounting bills and financial instability, providing you with much-needed relief during a challenging time.
One of the significant advantages of pre-settlement funding is its non-recourse nature. This means that if you don’t win the case or reach a settlement, you are not obligated to repay the funded amount.
Uninsured and underinsured insurance might not be the first thing that comes to mind when you think about insurance, but it is undeniably essential. Accidents involving uninsured or underinsured motorists happen more often than you might expect, and the financial consequences can be devastating. By adding UM/UIM coverage to your auto insurance policy, you can safeguard yourself, your family and your finances against the unexpected.
In the grand scheme of financial planning, UM/UIM insurance is a relatively small investment with potentially substantial returns. It provides the peace of mind that you and your loved ones will be protected, regardless of the circumstances on the road. So, don’t wait until it’s too late; ensure you have the safety net of uninsured and underinsured insurance in place today, and remember that pre-settlement funding is there to provide additional support if the need arises.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. No attorney-client or confidential relationship is or will be formed by use of the site. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction.
Oasis provides pre-settlement funding, also known as consumer litigation funding, to its customers through different products depending on their state of residence or cause of action. Many consumers will be provided pre-settlement funding in the form of a purchase agreement, which assigns a portion of the pending proceeds from their legal claim. Other consumers, such as those in SC and CO will be offered a funding in the form of a pre-settlement loan, sometimes referred to as a lawsuit loan. These transactions have important differences, therefore, consumers should carefully review and be aware of the type of transaction that is offered to them by any funding company.