Insurance 101 - UM & UIM Coverages (Commercial Auto).

Did you know that three out of every seven vehicles on the road are putting you and your business at risk? Statistics show that one in seven drivers on the road are driving without any auto insurance, while two more of those drivers are driving underinsured with state mandated minimum coverage. This means that nearly a third of all drivers on the road will be unable to pay what they're responsible for should they cause a serious accident, and their negligence could cost you. Let's assume you and your employees are responsibly and legally driving with the appropriate insurance coverages for liability, which provides you protection when you're at fault in an automobile accident because you've injured someone else or caused damage to their property. Coverage for damage to your own vehicle, also known as comprehensive and collision coverage, which helps pay for the damages you or your employees cause to your own vehicle in an accident. And medical payments coverage, which provides you protection to pay for any medical expenses you or the passengers in your own vehicle sustain in an accident. But if you're involved in an accident with a person who doesn't carry liability insurance or has minimal coverage, you'll likely have to pay out of your own pocket for your medical bills or your work comp policy will need to respond, even if the accident wasn't your fault. An important way you can protect yourself and your business is to add uninsured motorist coverage to your auto policy. UM coverage pays damages for bodily injury and in some states property damage that result from an accident caused by a person who doesn't carry insurance or from a hit and run driver. In addition to the problem of uninsured vehicles, remember that two out of every seven drivers on the road purchase bare bones insurance policies to save money. After all, most states only require minimum coverage limits, which are quite low. What if one of those drivers causes a serious accident and injures you or one of your employees? Their $25,000 in coverage will likely not be enough to pay the medical bills. By purchasing underinsured motorist coverage, which is available in most states, you won't be left holding the bill. To learn more about UM and UIM coverages and to make sure you and your vehicles are properly protected, contact your independent agent today.