Even if the other guy is insured, it may not be enough and adding Farmers car insurance uninsured/underinsured motorist coverage could prove invaluable
Most people driving on the road are responsible drivers who carry up-to-date and legally valid levels of car insurance. It’s the ones who don’t who cause the problems and there are many of them. According to research from the National Association of Insurance Commissioners (NAIC) between 17% and 25% of all people driving on the road have no car insurance coverage at all and as many as 35% are only carrying the barest minimum levels to keep them in legal compliance. Adding an option like Farmers car insurance uninsured/underinsured motorist coverage can add an extra layer of protection against a possible altercation with one of those drivers.
What it covers
Most states require licensed drivers to carry some form of insurance and typically, that comes in the form of liability car insurance coverage. Liability policies pay for damages and the treatment of injuries you cause to others in a car accident that is your fault. Every state sets a minimum level of liability coverage (both bodily injury and property damage liability) for licensed drivers, but every insurance expert on the planet will tell you that these state minimum levels are woefully inadequate to cover expenses incurred in any major accident.
Farmers car insurance uninsured/underinsured motorist coverage steps in should you be involved in an accident with an uninsured driver or a driver who has liability coverage at a level too low to compensate you or your passengers adequately to cover the cost of the damage they caused. This option will also pay for damage caused by any hit-and-run drivers, or if your car is damaged by a clueless driver who sideswipes you while you’re parked and merrily drives on.
Is it required?
There are several states that require licensed drivers to carry uninsured/underinsured motorist coverage in addition to the liability car insurance levels mandated by the state. Many of these states are no fault insurance states and the requirement is in place because remedies in courts for those states are limited. There are also occasions where you may be required to carry this option because the terms and conditions of a car loan or lease may require it of you.
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You should also be aware that there are some states that set minimum levels of uninsured/ underinsured motorist coverage you are compelled to have in place if you buy it at all. Be sure you consult your state’s requirements as well as any contractual obligations you may have for car insurance protection.
Is it necessary?
As with any car insurance coverage option, unless it is legally required of you, you will have to make a risk-reward assessment. If you have no problem imagining your ability to shell out thousands of dollars out-of-pocket to pay for uncovered repairs to your car or treatment of injuries sustained in an accident, then you may not feel the need to add Farmers car insurance uninsured/underinsured motorist coverage. If you’re comfortable with the fact that as many as one in four cars around you is being driven by an uninsured driver (or the cars your son or daughter or spouse is surrounded by while they drive) then you’ll probably not see the need for this coverage.
But consider the case of the bare minimum driver. Say you live in a state where the liability coverage required of licensed drivers is $5,000 for property damage (and several states, including California, have that low a level) and your $30,000 new car is totaled by a driver with the legally allowed minimum coverage – where would you be?
Is it expensive?
One additional factor to bring into your consideration of adding something like Farmers car insurance uninsured/underinsured motorist coverage is that, after liability coverage, it is probably the least expensive add-on you can include in an auto insurance coverage plan. In states where it’s required, you will hardly notice the premium increase when you add it to your overall Farmers car insurance.
(View more details about Farmers car insurance coverage options)
While you may be a responsible driver, part of being one is to protect yourself and your family against the hazards of drivers who aren’t. A step in that direction is to add something like Farmers car insurance uninsured/underinsured motorist coverage. To find out if you really need this option, it might help for you to spend some time with a local, licensed car insurance agents familiar with companies like Farmers. Reply! can help you out here by connecting you to car insurance agents in your area prepared to help you get all the coverage you need at a price you can afford.