Straight Talk Law: Struggling Economy Leads to Increase in Uninsured Drivers; Why you need UM/UIM Coverage
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by: MattCBA
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In today’s economy, people are trying to save money any way that they can. To some, this means cutting back on, or even worse, completely eliminating their auto insurance coverage. What happens if you’re in an accident and the other driver has no insurance? Or what if the driver is underinsured? Will you be covered? You will be if you have uninsured or underinsured (UM/UIM) coverage.
To help get a better understanding of uninsured or underinsured coverage, consider these scenarios:
• If you buy UM/UIM insurance and a driver who has no insurance (or not enough insurance) hurts you, then your insurance company will pay you damages up to the limits of the UM/UIM coverage you bought. Since the other driver is uninsured or under-insured, your company pays you.
• UM/UIM is also very important for another reason. If you are the victim of a hit and run and the other driver is never caught, your UM/UIM coverage will protect you.
• Finally, your under-insured motorist coverage will also protect you if the other party had less insurance than you did. If you get hit by someone who bought a low amount of insurance, then your own policy will provide you protection up to the amount that you bought for yourself.
Washington State laws require all drivers to have a minimum of $25,000 in coverage, yet a stunning amount of Washington drivers don’t have any insurance at all. Statistics show that around 21% of Washington drivers who are involved in some sort of accident do not have insurance. People may have lost their jobs, and decided that they could no longer afford insurance. If that is the case, how are they supposed to pay for damages they cause in an accident, such as your medical bills or lost wages if you are involved in an accident with them that is their fault? They won’t be able to. That is why it is extremely important to have as much UM/UIM coverage as you can afford.
Looking at some statistics, it becomes even more evident that today’s economy is directly affecting the rise in uninsured drivers. The Insurance Research Council (IRC) found the nationwide percentage of uninsured motorists to be 13.8 percent in 2007. They also found that this number could rise to an alarming 16.1 percent by 2010. And if the unemployment rate continues to rise, so will the number of uninsured drivers. The IRC states that an increase in the unemployment rate of 1% results in an increase in the uninsured motorists rate of more than three quarters of a percentage point.
It should be clear that it is not a recommended idea to cut back on your auto insurance, especially during this economic recession. If you want to protect yourself from underinsured and uninsured drivers, you should absolutely make sure that your insurance plan includes UM/UIM coverage. If it doesn’t, I recommend you invest in as much as you can afford as soon as possible. You can find more details in my free book, Straight Talk Law: The Truth About Buying Washington Auto Insurance. That book can be ordered by going to www.StraightTalkLaw.com/books.
For more free “Straight Talk Law” information, please visit my website at www.straighttalklaw.com , where you can order free books on Washington auto accidents, auto insurance, and other valuable legal information, offered as a public service by myself and my law practice in Seattle, Washington.
About the Author
Jason Epstein joined Premier Law Group as a partner in 2007. Jason is a litigator handling all types of personal injury cases with an emphasis on serious plaintiff’s personal injury and insurance coverage. Jason is a member of the Washington State Association for Justice and serves within its leadership. Jason often speaks at CLEs and serves as an arbitrator for both private and mandatory arbitration matters. Jason completed a certificate in Alternative Dispute Resolution from the Strauss Institute of Dispute Resolution and the Trial Advocacy program through the National Institute of Trial Advocacy. Jason has been dedicated to representing injured people since 1999. Jason Epstein has been representing individuals against insurance companies and large corporations since 2001. He limits his practice to personal injury and wrongful death cases including auto accidents, motorcycle accidents, or other serious and catastrophic injuries. Hopefully you have already visited StraightTalkLaw.com. This website is loaded with tons of information, and is constantly updated to keep you informed of recent developments. You can also stay up to date by following the blogs which are linked toStraightTalkLaw.com Jason understands that providing the best legal representation to his clients means limiting the number of cases he accepts. He takes fewer cases so he has more time for you. By limiting his caseload, Mr. Epstein is able to give each client and each case the time and attention that they deserve. If you would like to see if your case qualifies for Mr. Epstein to represent you, please contact us throughStraightTalkLaw.com, request one or more of Jason’s books, or call us toll free at (888) 333-1873.
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