Many motorists make what they think is a sound financial decision by electing not to purchase Uninsured/Underinsured motorist (UM/UIM) coverage. I have represented many individuals that did not have this very important coverage. The reasons are many and varied. The most common reason provided is that a particular vehicle is old and only needs liability insurance. Another reason is saving money. Unfortunately, the $250.00 to $500.00 an insured saves in a year by electing not to obtain UM/UIM coverage can prove to be a horrible financial decision.
I emphasize to my clients that while liability coverage protects the world against them, UM/UIM coverage protects them against the world, whether they are in their vehicle or not. And that is the point: UM/UIM actually protects you, the policy owner. Despite what some self proclaimed financial experts write, it is an irresponsible and bad financial decision when a driver refuses to obtain UM/UIM coverage. The sound and prudent act is to obtain UM/UIM coverage with high limits. This will result in not having to rely on the coverage limits, or lack thereof, of other drivers.