I see it more often than I’d like. Someone comes to me looking for a quote on their auto insurance and their prior agent had reduced or eliminated their uninsured motorist coverage to save them an extra $10 or $15 per month. Don’t get me wrong, tough economic times means making tough decisions and I’m not saying that there isn’t a reason to look at where you can save a few dollars a month on your auto insurance, because those dollars add up over the course a year.
The problem I have with agents who tell their clients to drop their uninsured motorist coverage is that they often times say it in a way that implies that the coverage is unimportant or unnecessary. Tell me how unimportant uninsured motorist coverage is when you’re in an accident with someone who doesn’t have insurance, or you get back to your car at the grocery store to find out you were in a hit and run or even worse you’re driving your new, $45,000 car and someone with state minimum liability insurance (only $25,000 in coverage) t-bones you at an intersection.
Uninsured motorist coverage can be tricky. You’ll likely see it on your policy declarations page noted as UIM or UM coverage. It can cover:
Being involved in an accident with someone who doesn’t have insurance.
Being involved in an accident with someone who doesn't have enough insurance.
A hit and run accident.
Medical bills, pain and suffering, and lost wages as a result of the accident.
Now, it is true that there may be other coverages on your policy, such as collision to repair your vehicle, or medical payments/PIP that can help out if you’re involved in an accident with an uninsured or under-insured driver, but those coverages often come with a higher deductible or less overall coverage.
Additionally, filing a collision or medical claim because of an uninsured driver can in some instances cause your rates to increase which would likely raise your rate more than the $10 or $15 a month that your agent was trying to save you.
Again, there are a number of people who carry low limits of uninsured motorist coverage or reject it all together. The key, from the standpoint of an agent, is to find out what level of risk tolerance your client has and help them build a policy of coverages that will protect the things that matter most to them that is also aligned with the overall level of risk that they’re willing to assume
Here at the Lewis Family Insurance Group we help our Dallas auto insurance clients find coverage options that are a specific fit for them. Every client is different, every insurance company is different and it’s imperative that you work with an agent that is looking out for you as an individual, not just signing you up for the same policy that everyone else that comes through their door gets.
If you’re looking for low-pressure personalized service for your Dallas auto insurance, the Lewis Family Insurance Group is here to help.