What is the cost of uninsured motorist coverage?
There are many reasons why people carry no or low uninsured motorist coverage, the major reason is that Insurance agents or companies often offer poor advice to customers looking for cheap insurance policies without letting them know the importance of uninsured motorist coverage because they are solely shopping prices.
In California, driving without uninsured motorist coverage or low uninsured motorist coverage is a risk. California roads are busy roads. You’ll never know when you will get hit by an uninsured driver. According to the Insurance Research Council studies in 2021, about 16.6 percent of motorists in California are uninsured.
Find out the cost and importance of uninsured motorist coverage.
What does uninsured motorist coverage cost?
If you are considering getting uninsured motorist coverage in California, you may wonder how much it costs or what the adequate amount is. There is no guaranteed quotation as the cost of your uninsured motorist coverage may depend on some varying factors, such as;
- The price of your vehicle
- Your driving history
- Other factors include your liability coverage limits.
California insurers usually offer uninsured policy limits equal to a driver’s liability coverage limits. For example, if you purchased 50/100 limits for at-fault accidents, you can also buy 50/100 limits for accidents caused by uninsured drivers.
So, what does uninsured motorist coverage really cost?
Although it may sound unbelievable, the cost of uninsured motorist coverage is relatively low.
- 15/30 coverage $30 per year (meaning a maximum of $15,000 to cover bodily injury or the death of a single person and $30,000 to cover damage or death of more than one claimant per accident.) this is the minimum liability coverage in California.
- 25/50 coverage $45 per year ($25,000 bodily injury coverage per person and $50,000 in total per accident)
- 50/100 coverage $60 per year ($50,000 bodily injury coverage per person and $100,000 per accident)
- 100/300 coverage $78 per year ($100,000 bodily injury coverage per person and $300, 000 coverage per accident)
A California umbrella policy offers more coverage.
Some insurance companies offer higher limits to clients, usually under an umbrella policy, up to $1,000,000. For maximum coverage, you can purchase an umbrella policy. They are inexpensive and can cover excess losses under any insurance policy carried at the maximum limits.
At Bojat Law Group, we recommend you purchase as high a limit as you can afford, as the general rule is to add enough property damage and significant bodily injuries to replace your vehicle and protect you fully in the event of an accident with an uninsured driver.
You should consult your insurance agent to discuss which uninsured policy limit works for you.
Why is uninsured motorist coverage necessary?
Many insurance agents and companies may argue the importance of uninsured motorist coverage. Some may even ask, “do you have health insurance, or do you really need compensation for non-economic damages, such as pain and suffering? They make you assume your health insurance will cover you fully in an accident.
They may even go further to tell you that an accident with an uninsured driver is unlikely, but the truth is that it is essential to have uninsured motorist coverage. Statistics show that about 20% of Californian accidents are uninsured. That is, one in eight drivers is uninsured.
All California Automobile insurance providers must offer uninsured and underinsured motorist coverage to prospective policyholders, and you can decline by signing a waiver, which may not be in your best interests. Because when you have uninsured motorist coverage, economic and non-economic damages are covered. Including medical bills, out-of-pocket costs, lost earnings, pain and suffering, and future losses.
Uninsured motorist coverage allows you to recover all compensatory damages from your insurance company after an accident that is not your fault. Without UMC, things could get messy.
Another reason is, most Californian drivers struggle to get back to the position they were in before a major accident. Many cannot afford to incur significant losses and may require reasonable compensation to get their lives back on track. Despite the public’s perception, it is rare and unlikely to win hefty payouts after an automobile accident.
Additionally, health insurance does not cover significant injuries. While private health programs such as Medicare and MediCal will pay medical costs after an accident regardless of fault, these health insurances do not cover services such as acupuncture and chiropractic care.
Also, they won’t pay for property damage or cover pain, suffering, or lost earnings. Another consideration is that many health insurance companies have pricey deductibles and copays.
Uninsured motorist coverage guarantees access to the necessary funds for your well-being when needed.
Important things to note about Uninsured Motorist coverage in California
Here are some important things to note about uninsured motorist coverage in California for those who still have doubts about its importance.
- It covers you, even as a passenger in someone else’s vehicle and as a pedestrian
- It Is essential coverage you can purchase to protect you and your family financially
- Uninsured motorist coverage extends to a resident family member in a passenger car
- Uninsured motorist coverage covers hit-and-run accidents
- Uninsured motorist coverage covers you when you are in an accident with a vehicle.
California car accident lawyers at Bojat Law Group recommends you get uninsured motorist coverage.
The most common uninsured motorist coverage is 30/60. That is $30,000 in bodily injury per person and $60,000 per accident.
Regardless of what any insurance agent tells you, you should never eliminate the coverage, as many of these insurance companies lower the insurance premiums to be more competitive in the market and enjoy higher profits due to low insurance limits.