Do I really need uninsured and underinsured motorist coverage?

I hear this question every week at my agency and in my opinion, the answer is YES. Let me explain why.

Lets suppose you are driving down the street,and by mistake, run a red light and are at fault for the accident, You have smashed into other car and cause serious death or injuries to other people in that car.The Bodily Injury coverage on your auto policy will pay for those deaths or injuries, up to the limits on your policy. Let's say you have $100,000/$300,000 liability limits. That means your auto policy will pay up to $100,000 worth of injuries per person  and up to a total liability payout of $300,000 per accident.

Now lets suppose the opposite situation. You are driving down the road and someone runs a red light and hits your car. Your medical injury bills total $100,000 but the other driver
only carries State Minimum Coverage of $15,000/ $30,000. What do you do now? You have $85,000 of medical bill that the other person's insurance will not pay and if the other person is driving with State Minimum Coverage, do you think they have the assets to cover your bills if you sue them for the balance? Probably not.

This is where having Uninsured and Underinsured coverage on your own auto policy is a blessing for you. This coverage will help pay your medical bills, to your policy limits, if the other driver is at fault and either does not have auto insurance or does not have enough coverage to pay your medical bills. Uninsured and Underinsured coverage on your policy is not required by AZ State Law and is not very expensive. But it could mean the difference between paying your medical bills or you having to sell some of your assets to help pay your bills.