Another important part of your vehicle insurance is “uninsured motorist” or “UM” coverage. The law requires insurance companies to automatically provide this coverage but many waive it to save only a few dollars. However, to protect your family from uninsured drivers you should always carry UM coverage. Many irresponsible drivers, like drunk drivers, have no insurance. It has been estimated that one out of six drivers are uninsured.

If, though, you have UM coverage and a negligent, uninsured motorist hits you, in effect, your UM coverage becomes the insurance of the uninsured driver. Then, if you or your passengers are injured you have a claim against your insurance for the healthcare bills, lost wages and pain and suffering. Without UM coverage you are stuck with these expenses with no reasonable recourse. Best option: Carry UM coverage with $30,000-$100,000 limits.

Over the last 20 years I have seen dozens of people who believed they had uninsured motorist coverage because they had “full coverage” while in fact they had waived it. Check your policy or confirm with your agent that you have UM coverage.