Why do I need Uninsured Motorist coverage on my auto insurance? Why am I paying for the other person?

Why do I need Uninsured Motorist coverage on my auto insurance?  Why am I paying for the other person?
 

This question, or a variation of this question, is something that we hear frequently from our insureds.  Do I need uninsured motorist coverage?  Why am I paying for the other person?

On your auto insurance policy, you might notice Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages listed where your liability limits are listed on your auto insurance policy.  These coverages are on your policy to help you – not to pay for the other person.

Uninsured Motorist Coverage:  This coverage may cover damage costs if you are involved in a covered accident with a driver who does not have insurance, or from a hit-and-run driver.
Sometimes, Uninsured Motorist coverage is separated into two different coverages: 

• Uninsured Motorist Property Damage (UMPD) may cover damage to your property, including the damage done to your car that you are legally entitled to recover.  (This is a coverage that is not available in Iowa, but is available in some of the other states that we work in.  This is an optional coverage for liability only vehicles.)
• Uninsured motorist bodily injury (UMBI) will pay for injury-related medical expenses to you or anyone in your vehicle. 

Underinsured Motorist Coverage:  This coverage may cover damages related to an accident where the other driver’s insurance policy limits are not enough to cover the damages.

A recent study by the Insurance Information Institute found that about 13% of drivers (1 in 8) don’t have auto insurance.  In Iowa, that number is a little lower with about 8% of drivers not having auto insurance.  Uninsured and underinsured motorist coverage protects you and your family against injuries caused by a driver who does not have insurance or does not have enough insurance.    
As always, your Absolute Insurance agent can help you with any questions about coverage on your insurance policy.

Boat Insurance Spotlight - "Store your watercraft, not your coverage"

The boating season in Iowa may be coming to an end as the weather starts to cool, but that doesn't mean that your boat insurance coverage should end.  It is important that your boat is protected year-round.

One thing that you need to do is to make sure to winterize your boat.  You can pay someone to professionally winterize your boat, or you can go through the steps yourself.  Check out this Progressive "Life Lanes" blog with tips on preparing your boat for fall & winter if you want to winterize your boat yourself, or there is also a step-by-step guide from Discover Boating that might be helpful.

Why should you keep coverage on your boat when it is being stored?  Just because your boat isn't out on the water doesn't mean that it is safe from the risk of damage. 

• Last year, we had an insured where a raccoon family "moved in" to a boat over the winter and tore up the seats.  Because they had a fitted cover on their boat, this was a total loss covered by Progressive.
• The temperature fluctuates greatly in winter - sometimes boats will have damage from the freezing and thawing coverage.  If a boat has been winterized, this is a covered loss by Progressive.

Two key things to keep in mind to help protect your boat: 1)  You need to winterize your boat  2)  Make sure your boat has a fitted cover in place when in storage

Check our website for more information on boat insurance, or contact your Absolute Insurance agent today for a quote on your boat today!