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Do I Need Uninsured Motorist If I Have “Good” Health Insurance?

By May 3, 2017June 9th, 2020Auto

One of the most common questions we get from our clients is: “Why do I need Uninsured Motorist coverage if I already have health insurance?” And it seems we get this question even more often as health insurance prices continue to sky-rocket.

To explain why you need to purchase Uninsured Motorist (UM) you need to understand what the coverage is. As we mentioned in our April 2016 blog, Stacked or Non-Stacked, UM coverage pays for post-accidental medical or compensatory damages you or your passengers might suffer after a collision with an uninsured or underinsured motorist.

Health Insurance Co-Pays and Deductibles

Typically, if you’re in an accident your health insurance will pay for medical bills relating to the accident. However, if you had a serious accident with a long hospital stay there would be countless bills for co-pays and deductibles. These bills are not  recoverable unless you had Uninsured Motorist coverage.

Loss of Income

Health insurance many not pay for the lost wages you incur because of missing work. And if you don’t have short and or long-term disability insurance you may suffer loss of income. However, uninsured motorist can pay for loss of income as a result or an auto accident.

Compensatory Damages

Finally, without Uninsured Motorist coverage, it may be difficult to recover damages from an uninsured/underinsured individual with limited assets. Uninsured Motorist can provide compensatory damages for pain and suffering and loss of enjoyment of life. The coverage can also pay for costs to make your home handicap accessible if the accident caused a permanent disability.

With nearly 27% of the Florida population being uninsured, Florida has the most uninsured drivers in the US (according to a 2015 study by the Insurance Research Council). And this study doesn’t even take into calculation the number of individuals driving with state minimum $10k/$20k coverage. Our suggestion is to always invest in yourself and purchase Stacked Uninsured Motorist coverage.