Online Auto Insurance Quantifies the Cost of Uninsured Motorist Coverage

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OnlineAutoInsurance.com releases the results of a premium analysis that shows how much it would cost to add uninsured motorist coverage to a California liability policy.

Adding 15/30 UM to the policy raised rates by an average of only $70 a year (an increase of about 3.9 percent).

In order to quantify the cost of protecting against accidents with uninsured drivers in California, OnlineAutoInsurance.com recently ran a series of price quotes for policies with varying levels of uninsured motorist insurance. The following are some highlights from the results:

     •    Adding 15/30 UM to a policy raised rates by an average of only $70 a year (an increase of about 3.9 percent).

     •    Adding 25/50 UM to a policy raised rates by an average of only $93 a year (an increase
of about 5.3 percent).

     •    Costs for UM had a pretty wide range among the carriers surveyed. The cheapest quote for adding 15/30 UM was $28 a year, while the most expensive was $106.

     •    The cheapest quote for adding 25/50 UM was $60 a year, while the most expensive was $148.

According to the Insurance Research Council, an estimated 15 percent of drivers in the Golden State lacked a basic California auto insurance policy in 2009. That means about 1 in 7 motorists in the state would have only their personal assets to pay for your injuries and property damage if they were to get into an accident with you.

To protect against situations like this, policyholders can add uninsured motorist (UM) protection to their protection plans. A UM policy will cover bodily injury damages that the policyholder sustains on account of a driver who is not insured. Insurers in California are required to offer the coverage to drivers, who must put it in writing if they wish to go without UM protection.

Source: http://1.usa.gov/lKCs0n

When purchasing UM policies, consumers will have to choose from the insurer’s split-limit options. An example of one option would be 25/50 UM coverage, which would pay up to $25,000 per person and $50,000 per accident for damages resulting from a crash with an uninsured motorist.

To learn more about this and how to find cheap insurance in California, readers can go to http://www.onlineautoinsurance.com/california/ where visitors will find informative resource pages and a quote-comparison generator that can help consumers find the best rates quickly.

Note on Methodology: The profile used for the rate analysis was an unmarried, 30-year-old male who has a clean driving record and lives in the 94110 ZIP code of San Francisco. The car to be insured was a 2010 Toyota Corolla. Eleven quotes from a handful of California insurers were used for each scenario. All scenarios included a policy that had 25/50/10 liability and comprehensive and collision coverage with $500 deductibles.

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Benjamin Zitney
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