There is no simple answer to this question. The average person, who is not on Medicare or AHCCCS, should carry both Uninsured (UM) and Under Insured Motorist Coverage (UIM). It is common knowledge that not everyone carries insurance even if the law requires it. Get in a collision with an uninsured person that results in bodily injury and without UM coverage, you have little if any hope of recovering.
What many people fail to recognize is that currently the limit of coverage is a minimum of $15,000.00. By buying underinsured coverage you are really protecting yourself from the person with minimum or just over minimum coverage.
As an example, a person is hit by a vehicle while in a cross walk. The injuries are significant and just the emergency room bill is in the thousands. The hospital stay and the rehabilitation far exceed the $15,000.00 policy the person has to insure the vehicle. OR, the person has no insurance at all.
In most cases the person has no other assets from which you can obtain a satisfaction of a judgment. Now add to the fact that the hospital is claiming a lien or the medical insurance is claiming a lien on the proceeds and you could easily have no money to cover you for your injuries. (Medical provider liens will be discussed in another blog).
If you are not on Medicare, are not receiving care at an Indian hospital or veterans facility or you are not on State AHCCCS, the money you will receive from Uninsured and under insured coverage, will go to your benefit not the health care providers.
So when you consider this insurance, remember you are buying it for you. Yes the person is irresponsible for having no insurance of very little but do not be irresponsible yourself in getting the necessary coverage to protect you and your family.