Unfortunately, many drivers on the road do not have the proper insurance in place
In Nebraska, the Insurance Information Institute (III) estimates that almost 10% of drivers are uninsured, while in Colorado the number grows to over 16% of drivers.1 And while those numbers are actually better than most states, another factor is being underinsured.
The state minimums for auto insurance are 25/50/25/25/50 in Nebraska and 25/50/15 in Colorado. What in the world does that mean? Well, in Nebraska, it means that a driver is required by law to carry:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- $25,000 uninsured/underinsured motorist coverage per person
- $50,000 uninsured/underinsured motorist coverage per accident
And in Colorado:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $15,000 property damage liability per accident
Are You Covered?
As you might have noted, Nebraska requires coverage for uninsured (UI) and underinsured (UIM) motorist. So, if you have a policy in Nebraska, you likely have at least $25,000 of coverage in place per person, and $50,000 per accident. If you do, the issue here may be these limits. Let’s say you have a $45,000 truck that is totaled in an accident with an uninsured motorist. In addition, the accident results in you causing property damage when your vehicle is pushed off the road. Depending on who is liable for the accident, a $50,000 limit is unlikely to be enough to cover your vehicle, the property damage, and the other person’s vehicle if you are at fault.
Likelihood of Use
While our rates of UI and UIM are relatively low, let’s say you take a road trip over to New Mexico, where almost 22% of drivers are uninsured. In addition, their minimums are only 25/50/10 – among the lowest in the country. An accident here has a much higher likelihood of a result that factors in UI/UIM. Scenarios like these are the reason you have to consider your risks.
Making Sure You’re Covered
Understanding the limits of your auto policy is a key part of knowing if you’re protected. Policies that include coverage for UI and UIM will also note these limits. Higher limits may be available for purchase to “upgrade” your current policy. In addition, coverages like a personal umbrella policy (PUP) may “extend” your limits in the cases of accidents with UI/UIM drivers.
Our agents can discuss your options for protection against UI and UIM liabilities. Give us a call and let’s review it!
1 – per 2019 stats at https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists