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What Happens If I Reject UM/UIM Coverage?

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Why You Shouldn’t Reject UM/UIM Coverage

As of 2019, Mississippi has the highest percentage of uninsured motorists in the country, with about 29.4% of drivers having no insurance. This leaves motorists with over a one in four chance of being involved in a collision with an uninsured motorist.

Due to the prevalence of this problem, Mississippi requires insurance companies to offer uninsured/underinsured motorist (UM/UIM) coverage to all drivers as an addition to their standard policies. However, drivers have the option to reject this protection in writing.

There may be many reasons why a driver would want to reject UM/UIM, but there are two main reasons why you may want to reconsider.

Higher Out of Pocket Costs

Choosing to reject UM/UIM coverage and then being involved in a collision with an uninsured driver could mean higher out-of-pocket costs for medical treatments and vehicle repairs. Since the minimum coverage retained for bodily injury and property damage is $25,000 each with this additional policy, you could be paying thousands of dollars upfront rather than having it already handled.

Effects on Personal Liability or Medical Pay Coverage

Another reason that you should consider obtaining UM/UIM coverage is that not doing so may force you to increase personal liability and Medical Pay (MedPay) coverage to accommodate for after-crash expenses. Although many drivers who obtain MedPay may be left with the impression that they don't need UM/UIM, this kind of coverage only provides payment for medical expenses and funeral costs but not the damage to your vehicle.

Should your vehicle be damaged to the point where it is totaled or needs significant repairs, having a UM/UIM property damage policy will require you to use less of your personal liability coverage.

Mississippi Car Accident Attorneys

Even without UM/UIM coverage, you have a right to obtain compensation for injuries resulting from a car crash caused by another driver. If you have questions about your legal options, call (662) 269-6188 to get in touch with a member of the Vollor Law Firm, P.A. team.