Uninsured /underinsured motorist coverage pays for medical treatment, lost wages and other damages if you are in a wreck caused by an uninsured, underinsured or hit-and-run driver.

Uninsured motorist coverage protects you if a driver who has no insurance hits you. If your uninsured motorist coverage includes property damage, then your bike would also be covered.  Check with your insurance agent to see if property damage is included or needs to be purchased separately. 

In 2007, The Insurance Research Council (IRC) estimated that 12 % of the motorists in North Carolina were uninsured.  In the worst state (New Mexico) the estimated percentage of uninsured motorists was 29%.  For those of us who like the twisties in Tennessee, the IRC estimates that 20% of the cars that may run into you are uninsured. (Click to read the report)

It is no surprise that the IRC also found that an increase in the unemployment rate results in a significant increase in the number of uninsured drivers

Underinsured motorist coverage is similar to uninsured motorist coverage, except it applies when the other party has less insurance than you have and need.

If we are involved in a wreck our passenger or we stand a good chance of being seriously hurt.  North Carolina’s Minimum required policy limits at the beginning of 2009 were $30,000 per person with a $60,000 maximum for all persons injured in the wreck.  That does not go very far in a serious wreck.  But, the odds are that a North Carolina car that hits you only has this much insurance to pay for the damage they have done.  

It is crucial that you evaluate the risks you are comfortable with and then insist that your agent provide you with that level of protection.  Don’t let someone minimize the importance of UM/UIM coverage.  In North Carolina, insurance companies are required to provide up to 1 million dollars in UM/UIM coverage.  It costs money to buy this coverage but it might be the best investment you ever make.  Be smart don’t let the company control this part of the conversation.  Find out what the various levels of coverage cost and then make a decision about how much risk you want to take.