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How Uninsured (UM)/Underinsured (UIM) motorist coverage protects you

On Behalf of Bennerotte & Associates, P.A.

Jan 18, 2023

Auto/Motor Vehicle Accidents

Minnesota actually has more robust insurance requirements than many other states. Drivers often dislike those additional requirements because they view them as expensive. However, the uninsured (UM) and underinsured (UIM) motorist coverage required by Minnesota state law plays an important role in protecting people from extreme financial hardship after motor vehicle collisions.

Despite the laws mandating insurance coverage, thousands of people in Minnesota let their policies lapse every year. If they are the ones who cause crashes, other people would not have the insurance they need to fix their vehicles or pay their medical bills, absent having their own uninsured (UM) and underinsured motorist (UIM) coverage. There are also a large number of people driving with only the bare minimum insurance required by state law (the minimum required limit is $30,000). The mandatory uninsured (UM) and underinsured (UIM) motorist coverage on your policy protects you from irresponsible drivers. While some uninsured (UM) and uninsured (UIM) coverage is better than none, it is wise to increase these policy limits, depending on your financial situation, earnings, and tolerance to risk.

What does the state require?

Technically, you do not need to carry extra protection for property damage, but Minnesota mandates coverage for bodily injury protection. At the very least, you should have $25,000 in uninsured/underinsured motorist coverage if someone gets hurt in your vehicle, with $50,000 available per crash. That coverage then protects you when there is a crash that results in expenses someone else’s policy won’t pay.

Expanding on the minimum coverage is often smart

If a crash results in a spinal cord injury, brain injury or a similar, catastrophic medical issue, the combination of your coverage with the other driver’s minimal coverage might still be too little for your needs.

The more coverage you add to your policy, the more protection you have in the rare but potentially devastating scenario where you get hurt severely by someone without insurance or with limited coverage. Your policy limit and the policy limit that applies to the coverage carried by the other driver are absolute limits. Even if you have hundreds of thousands of dollars in additional medical expenses, neither policy will pay more than the limit on the policy.

Many drivers find that paying slightly more for coverage is a worthwhile choice because they have more protection from the irresponsible choices of other people. Some people still find themselves in need of more compensation, which may lead to a personal injury lawsuit. Learning more about Minnesota’s Insurance system can help you better handle the aftermath of a serious motor vehicle collision.