As a responsible driver you have auto insurance to protect yourself if you were to have an accident. But not everyone is so conscientious. If you do not have uninsured/underinsured motorist (UM/UIM), you could be at a financial risk should you ever get hit by a UM/UIM. This is a much more common occurrence than you think. The National Association of Insurance Commissioners reports that 12.6 percent or one in every eight drivers, are uninsured/underinsured.
One great example of UM/UIM is getting hit by an UIM driver with only state minimum liability and you have an $80,000 vehicle. If state minimum is 25/50/25 it only covers your damage up to $50,000. So what happens about the other $30,000? They can be sued for their belongings and future earnings, but you need your vehicle fixed immediately. That’s where the UM kicks in and covers the rest of the damages caused by the other person. It will also cover the passengers; if any injuries occur to them as well.
So do not be too quick to reject UM/UIM because you could be added to the statistics and become one out of those eight.