Why do you need UM/UIM Coverage?
- An estimated 26% of vehicles on Oklahoma roads are uninsured, marking one of the highest rates in the country.
- Even with insurance, the state’s minimum coverage requirements are only $25,000.
When you’re hit by a driver who lacks insurance or doesn’t have sufficient coverage to compensate for your damages, your UM insurance covers your damages up to the limits of your policy. Would you rather rely on every other driver to have adequate, or any, insurance?
2024 Update: Oklahoma’s Uninsured Vehicle Enforcement Program
The Uninsured Vehicle Enforcement Program empowers law enforcement, including district attorneys and police, to identify uninsured vehicles on public roads through automatic license plate reader systems. The penalty has increased from $100 to $250. Repeat violations or non-compliance can lead to driver’s license suspension and vehicle impoundment.
Savvy drivers protect themselves with UM coverage.
UM/UIM Coverage is more affordable than many realize, often adding just about $10/month to a policy.
Examples of How UM Works
Imagine a car accident where you incur $60,000 in damages, and the other, at-fault driver has only $25,000 in bodily injury insurance. Oklahoma’s minimum coverage requirements have remained at $25,000/$50,000/$25,000 since 2004. This means the insurer will only cover up to $25,000 per person and $50,000 total for multiple injuries.
Here’s how different scenarios might unfold:
Without UM Insurance
You receive $25,000 from the other driver’s insurance, leaving $35,000 in unpaid losses. Without health insurance, you could owe a significant amount to medical providers.
With $25,000 in UM Insurance
You collect $25,000 from the other driver’s insurer and $25,000 (your policy limit) from your UM insurer. You’re still $10,000 short, which, though better than the first scenario, might leave you wishing for more UM coverage.
With $50,000 in UM Insurance
You collect $25,000 from the other driver’s insurer and $35,000 from your UM insurer, fully covering your damages. Note: you can settle with the liability carrier before settling with your UIM provider.
Why UM/UIM Coverage Is Advisable
What UM/UIM Coverage Includes
- Uninsured Motorist Coverage (UM): This coverage pays for medical expenses, lost wages, and pain and suffering when an uninsured driver hits you.
- Underinsured Motorist Coverage (UIM): Activates when the at-fault driver’s insurance doesn’t fully cover your damages.
Advantages of UM/UIM Coverage
- Financial Security: Helps avoid financial hardship following an accident.
- Peace of Mind
- Protection for All Passengers: Covers family or friends in your vehicle.
- Customizable Coverage Limits: Allows you to adjust the coverage to fit your budget and needs.
Cost of UM/UIM Coverage
- Affordability: Generally more cost-effective than liability coverage premiums.
Stacking UM/UIM Coverage
Stacking enables the combination of coverage limits from multiple vehicles or policies for enhanced protection. Ensure your policy permits this. Stacking usually requires a separate premium for each UM/UIM policy.
UM/UIM FAQS
What Happens If I’m Hit by an Uninsured Driver Without UM/UIM Coverage?
You could sue the at-fault driver and obtain a court judgment, but collecting the full amount can be challenging. You might have to cover repairs and medical expenses yourself.
Can UM/UIM Coverage Be Used for Hit-and-Run Incidents?
Yes, UM/UIM coverage often applies in hit-and-run situations.
How Should I Determine the Right UM/UIM Coverage Amount?
Your UM/UIM coverage should generally match your liability coverage to ensure sufficient protection.
Can I increase my UM/UIM coverage after an accident?
It’s impossible to retroactively increase your UM/UIM coverage to cover an existing claim. Coverage decisions must be made before an incident occurs.
Is UM/UIM coverage mandatory in Oklahoma?
Oklahoma law does not require drivers to carry UM/UIM coverage. However, it’s highly recommended for added protection.
How does UM/UIM coverage protect passengers?
UM/UIM coverage extends to passengers, covering their medical expenses, lost wages, and pain and suffering if involved in an accident with an uninsured or underinsured driver.
What is the process for filing a UM/UIM claim?
To file a UM/UIM claim, notify your insurance company immediately after the accident. Provide all necessary documentation, including police reports and medical records, to support your claim.
Can I stack UM/UIM coverage in Oklahoma?
Oklahoma allows policyholders to stack UM/UIM coverage across multiple vehicles or policies, offering greater protection. Ensure your policy permits stacking.
Does UM/UIM coverage apply to hit-and-run accidents?
UM/UIM coverage typically applies to hit-and-run accidents, offering protection when the at-fault driver cannot be identified.
How long do I have to file a UM/UIM claim in Oklahoma?
The statute of limitations for filing a UM/UIM claim in Oklahoma is generally two years from the date of the accident. It’s advisable to file as soon as possible.
What if the at-fault driver is from another state?
UM/UIM coverage applies regardless of the at-fault driver’s state of residence, offering protection even if the other driver’s insurance policies differ from Oklahoma’s requirements.
Can UM/UIM coverage be used for property damage?
While primarily for bodily injury, some UM/UIM policies may offer coverage for property damage. Check your policy details or consult with your insurance provider.
How does UM/UIM coverage compare to health insurance?
UM/UIM coverage specifically addresses damages from auto accidents, including medical expenses, lost wages, and pain and suffering, which may not be fully covered by health insurance.
