Is Uninsured Motorists Coverage Your Best Protection in a Bad Economy?

Is Car Insurance Your Best Protection in a Bad Economy?

Why is Uninsured Motorists Coverage (UM) your best protection in a bad economy?  States like Kentucky have minimum insurance requirements for cars operated on its roadways.  Kentucky also requires insurance companies, when selling car insurance, to offer UM insurance with every policy sold.  The only exception is if you chose to reject the coverage in writing.

UM is coverage provided by your insurance policy.  It protects you and your passengers in the event you are injured in an accident caused by an uninsured driver.  While it is against the law to drive without insurance in Kentucky, drivers often do.

When the economy gets bad and times are tight, drivers may be tempted to quit paying their car insurance.  This does not stop them from driving.  If they cause an accident, there is no insurance available for the injured person(s).  UM coverage provides such insurance.  This coverage will pay for past and future medical bills and past and future lost wages, as well as, past and future pain and suffering.  It is one of the most important coverages you can have and an absolute necessity in difficult economic times, when the number of uninsured drivers on the road increases.

Unfortunately, when the economy is bad and times are tough, drivers may be tempted to look for ways to reduce their own insurance premiums.  They may think that UM coverage may not be necessary.  People may be encourage to “get legal for less”, meaning they chose to carry only liability insurance to comply with Kentucky’s legal requirements.  This coverage will not help you if you’re injured by an uninsured motorist.  The small premium you pay over a six month period far outweighs the damage done if you’re struck by an uninsured motorist and forgo this coverage.

So beware of insurance agents who offer to reduce or eliminate this coverage to lower your premiums or monthly payments.  Demand that you be provided UM coverage to protect you from uninsured drivers.  While you may be unable to protect yourself against bad drivers, you can protect yourself against uninsured ones.  This may just be your best protection in a bad economy.