Should I buy ‘U’ Coverage (Uninsured Motorist) as part of my Pennsylvania auto insurance?
Should You Buy ‘U’ Coverage on Your Pennsylvania Auto Insurance Policy?
In Pennsylvania, automobile insurance policies must offer drivers the option to purchase Uninsured Motorist (UM) coverage — sometimes referred to simply as “U” coverage. Many drivers skip this optional coverage to save money on their premium. Here’s why that decision can be a costly mistake.
What Is ‘U’ Coverage?
‘U’ coverage — or Uninsured Motorist coverage — protects you when you are injured in an accident caused by a driver who has no automobile liability insurance. Pennsylvania requires all drivers to carry liability insurance, but not all drivers comply. Estimates suggest that as many as 10–15% of drivers on Pennsylvania roads may be uninsured at any given time.
Without UM coverage, if you are hit by an uninsured driver, you have no liability policy to make a claim against. You would be limited to your own First Party Benefits (which cover medical bills and a portion of lost wages up to your policy limits) and whatever you could collect from a personal lawsuit against someone who likely has no assets to pursue.
What Does ‘U’ Coverage Pay For?
UM coverage compensates you for the same types of damages you could have recovered from a liable driver’s insurance — including:
- Medical expenses beyond your First Party Benefits limits
- Lost wages beyond your income loss coverage
- Pain and suffering, disfigurement, and loss of enjoyment of life
- Future medical expenses and lost earning capacity in serious injury cases
How Much ‘U’ Coverage Should You Buy?
Pennsylvania’s minimum required liability limits are $15,000 per person / $30,000 per accident — levels that fall well short of covering serious injuries. Many personal injury attorneys and financial advisors recommend purchasing UM coverage at limits that mirror your liability coverage — or higher. The cost difference between minimum UM limits and higher limits is often modest.
Consider Stacked Coverage
If you have multiple vehicles on your policy, purchasing stacked UM coverage allows you to multiply your coverage limit by the number of insured vehicles — dramatically increasing the pool of available coverage in a serious accident. The additional premium for stacking is often small relative to the added protection.
The Bottom Line
Uninsured Motorist coverage is one of the most valuable — and most underutilized — protections available to Pennsylvania drivers. It is inexpensive relative to the protection it provides, and it can be the difference between financial recovery and financial devastation after a serious accident with an uninsured driver. Talk to your insurance agent about adding or increasing ‘U’ coverage on your policy.
