7. How Much Uninsured and Underinsured Motorist Coverage Should I Carry?
This coverage protects you if you are hit by a driver who has no insurance or not enough insurance to cover your damages, and it is one of the most commonly underestimated coverages available. Ask your agent to explain the uninsured motorist rate in your specific area, since this can vary significantly by region, and use that information to decide on an appropriate coverage limit rather than defaulting to the state minimum. If your agent cannot provide local statistics, a quick search for your state’s department of insurance data can often fill in that gap before you finalize your decision.
Many financial professionals suggest matching your uninsured motorist coverage to your liability limits, since this ensures you are protected by roughly the same amount whether you are the one causing an accident or the one being hit by an underinsured driver.