It's estimated that around 10% of vehicles on the road are uninsured, and many others carry only the minimum required insurance coverage. This reality poses a significant risk to responsible drivers who might find themselves in an accident with a driver who lacks sufficient insurance to cover the damages. To protect yourself from such situations, it’s crucial to understand the importance of uninsured and underinsured motorist coverage.
When you’re involved in an accident that’s not your fault, the expectation is that the other driver’s insurance will cover your medical expenses, lost wages, and other damages. In Iowa, the law requires drivers to carry liability coverage of at least $20,000 per person and $40,000 per accident. However, not all drivers adhere to this law, and those who do may have only the bare minimum coverage, which is often inadequate to cover the full extent of damages resulting from even a moderately severe accident.
Accidents involving uninsured drivers or those with minimal insurance coverage are more common than you might think. This is where uninsured and underinsured motorist coverage becomes indispensable. By investing in this type of insurance, you’re essentially safeguarding yourself against the financial irresponsibility of others. If you’re in an accident with a driver who doesn’t have enough insurance—or any insurance at all—your uninsured/underinsured motorist coverage steps in to fill the gap. It’s an additional layer of protection that ensures you aren’t left bearing the financial burden of an accident caused by someone else.
The significance of underinsured motorist coverage, in particular, cannot be overstated. While the chances of encountering an uninsured driver might be relatively low, the likelihood of being in an accident with a driver who carries only minimal insurance is much higher. For instance, the $20,000 minimum liability coverage mandated by Iowa law is likely insufficient for most personal injury claims, especially in accidents involving significant injuries. Without underinsured motorist coverage, you might find yourself unable to recover the full compensation you’re entitled to, unless the other driver has the financial means to pay out of pocket—a rare occurrence.
I strongly advise drivers to purchase as much uninsured/underinsured motorist coverage as their budget allows. At a minimum, consider a policy with $100,000 per person and $300,000 per accident in coverage. Even better would be limits of $500,000 per person and $1,500,000 per accident. Many personal injury claims far exceed $100,000 in damages, especially when you factor in medical expenses, lost wages, and pain and suffering. The per-accident limit is also crucial, particularly in situations where multiple passengers in the same vehicle are injured. Higher per-accident limits ensure that there’s sufficient coverage to compensate everyone involved adequately.
In conclusion, while it’s frustrating to think about paying extra for insurance to protect yourself from others’ negligence, the alternative—finding yourself seriously injured with little to no compensation—makes it a necessary expense. Uninsured and underinsured motorist coverage is a small price to pay for peace of mind and financial security in the event of an accident. Investing in robust coverage today can save you from significant financial and emotional stress down the road.
For personalized legal advice, reah outto one of our personal injury attorneys today! Our office can be reached at (402) 541-5867 or via email at info@ironcladinjurylaw.com.
