Two cars in an auto accident.

Is UM/UIM Coverage Worth It?

Arkansas has minimum insurance requirements for all drivers to carry. Arkansas law mandates that drivers carry a minimum of $25,000 per person, $50,000 per accident in bodily injury protection. Additionally, drivers must carry $25,000 per accident in property damage coverage. If a person is caught operating a vehicle without having this required insurance coverage, he or she may face substantial fines and other penalties. Additionally, under Arkansas law, insurance companies must offer Uninsured and Underinsured Motorist Coverage (UM/UIM) to all drivers. UM/UIM coverage is not, however, required. It is optional insurance coverage. 

The insured driver must sign a statement expressly rejecting UM/UIM coverage. Drivers, however, should pause before rejecting UM/UIM coverage. It is an important decision and, while carrying UM/UIM coverage means you will be paying more for your insurance premiums, it can prove invaluable down the road.

Understanding UM/UIM Coverage

Despite the fact that Arkansas law requires drivers to carry bodily injury insurance coverage, many drivers still choose to drive without this required coverage. In fact, the Insurance Information Institute reports that Arkansas is one of the top 10 states in having the highest percentage of uninsured motorists. The Insurance Information Institute estimates that 16.6% of Arkansas drivers do not have insurance. This means that UM/UIM coverage can be very important to have.

Uninsured and underinsured insurance coverage, referred to as UM/UIM coverage, provides benefits to you, the insured, should you be involved in an accident caused by a driver who is either uninsured or does not have enough available insurance to fully cover your losses resulting from the accident. This coverage will also apply should you be the victim of a hit and run accident. While many Arkansas drivers do not carry auto insurance, many more only have the minimum required insurance coverage. Should you be injured in an auto accident, your damages can very quickly exceed the minimum insurance coverage. Should you elect to have UM/UIM coverage, your insurance coverage will then provide valuable benefits to help you cover the damages you sustain that exceed the other driver’s insurance limits.

If you are hit by an uninsured or underinsured driver and you do not have UM/UIM, it could be very difficult or next to impossible to recover the compensation you need to cover your accident-related expenses. You could sue the at-fault driver personally for your damages and you may even “win” a big settlement in court. However, you may not actually receive payment on this settlement. Drivers who do not carry insurance or only carry minimum insurance coverage often do not have the money or assets to cover these kinds of money awards. This means you will only be left with a court-ordered settlement and no actual payment.

Personal Injury Attorney

If you have been injured in an accident, get in touch with the Law Offices of Bryce Cook. We will not only investigate the accident right away, we will also look into all possible avenues of monetary recovery for you. We are committed to our clients and tirelessly work towards seeing that they are fully compensated for their losses. Contact the Law Offices of Bryce Cook today.