In the state of Arizona, vehicle owners are required to purchase a certain amount of liability insurance before driving. The purpose of this type of insurance is to provide benefits in the event of an accident caused by the vehicle’s owner. However, if you are involved in an accident caused by someone else, your BI (Bodily Injury) and PD (Property Damage) liability coverage will not apply.
In cases where someone else causes your accident, you will typically rely on the responsible driver’s insurance policy to cover your losses. If the other driver is uninsured or underinsured, however, you may not receive enough compensation to pay your medical bills and/or replace your lost wages. For this reason, it is important to carry UI and UIM insurance as well.
What Is UI and UIM Insurance?
UI and UIM insurance policies are designed to provide protection against losses related to accidents caused by uninsured or underinsured drivers. This coverage can be purchased in addition to general liability insurance.
While some states require all drivers to purchase UI and UIM coverage, this type of protection is optional in the state of Arizona. Nonetheless, it is better to purchase UI and UIM insurance to give yourself the security you need on the road.
Risks of Driving without UI and UIM Coverage
Driving without UI and UIM coverage exposes you to numerous risks. For example, across the nation, as many as 15 percent of drivers are operating their vehicles without insurance at any given time. Additional drivers have liability coverage, but their policy limits are too low to cover the costs of a typical accident. Because of the recent financial crisis, these percentages have likely grown even more.
Some insurance companies attempted to ease subscribers’ financial burdens by reducing the cost of insurance or deferring payments temporarily. However, when these measures end, even more drivers will likely reduce or cancel their policies, leaving others even more exposed on the road.
Protecting Yourself with UI and UIM Coverage
The best way to protect yourself from loss in the event of an accident is to purchase your own coverage, as opposed to relying on liability insurance from another driver. For this reason, purchasing UI and UIM coverage is highly recommended.
Keep in mind that not all UI and UIM policies are the same. These policies always come with limits that will determine the maximum amount of benefits you can receive in an accident. Although low limit policies may be available, it is in your best interest to purchase a policy with limits well above the minimum. In fact, the state of Arizona recently raised its minimum limits for liability insurance, indicating that many drivers were operating their vehicles without adequate coverage. To ensure that your policy offers the level of coverage you need, consider working with an independent insurance agent.
Contact Our Office
Different insurance providers offer different policies. Likewise, premiums for the same coverage may vary from one insurance provider to the next. To ensure that you are purchasing the coverage you need at the most affordable price possible, contact Maki Insurance. We will be happy to review your needs and help you make the best decisions.