In 2017, Alabama was ranked #6 in the country in the number of uninsured drivers. Uninsured drivers are 34% more likely to cause an accident.

Let that sink in.

An average ordinary rear-end collision can cause in excess of $15,000 just in medical expenses. That doesn’t even take into account lost wages. By contrast, the state minimum requirement for coverage is $25,000/$50,000/$25,000 - $25k per person; $50k per accident; and $25k property coverage. The amount of insurance someone carries is the amount you can recover from them. So, if an uninsured driver causes an accident that leaves you with tens of thousands of dollars in expenses and lost wages, that’s really too bad.

That’s where uninsured/under-insured motorist (UM/UIM) coverage comes in. This coverage under your policy would then step into the shoes of the at-fault party and would compensate you for any additional damages. The state instructs drivers to carry a minimum of $25,000 per person and $50,000 in the aggregate of uninsured/under-insured motorist coverage, but there is a caveat. You, the insured, can expressly waive this coverage. Even reputable agents sometimes advise their insureds to waive this coverage under the guise of saving money on the premium.

I can’t stress this enough: It’s not worth it.

While waiving UM/UIM coverage will save you, the insured, a little money, it is definitely not in your best interest to do so. We mentioned the high numbers of uninsured drivers in Alabama, but underinsured drivers can cause the same problems if the wreck they cause results in catastrophic damage.

As a personal injury lawyer, I’ve seen firsthand the way an uninsured or underinsured driver can wreck more than a car. If you work, have dependents or a spouse, and own any property, your coverages should be a minimum of $100,000 per person, $300,000 per accident, and $100,000 in property damage. I would strongly encourage your UM/UIM coverages to mimic your liability coverages. After all—why would you afford the world at large better coverage than you would yourself? Your liability covers the world against your negligence. UM/UIM covers you in case of the world’s negligence.

Back to my earlier statement about saving money on the premium by waiving UM/UIM coverage. Why is it a bad trade? Waiving UM/UIM coverage on your policy may save you $10 on the premium. Think about Alabama’s numbers of uninsured motorists and ask yourself if $10/month is worth the risk.

There are better ways to save money on the premium: buckle up, have a safe driving history, have a good credit score, etc. Waiving rental car coverage would likely save you much more on the premium, and would not be so detrimental in the event you were severely injured in an accident at the hands of some negligent person.

So, if your agent has tried to get you to waive this coverage, fire them. Fire them now. No quality agent should ever suggest this. 

If you have a $100,000/$300,000 policy, and your agent has you on a policy that only provides $25,000/$50,000 in UM/UIM, then I would seriously question whether that agent has you in the best policy.

Make sure you and your loved ones are adequately protected. The whole point of insurance is to protect you. There are several ways to get your premium down without sacrificing critical coverage.