How One Missed Insurance Line Item Could Derail Your Retirement

You may have a detailed retirement plan, diversified investments, and a solid savings rate, but a missing line in your auto insurance policy could still upend your entire financial future.

It’s not a scare tactic. It’s reality, as personal injury attorney Mike Kane sees it every day. In this episode of The Retirement Engineer, Jim Kruzan, CFP®, CRPC®, speaks with Mike about one of the most critical and most overlooked coverages: uninsured and underinsured motorist coverage (UM/UIM).

1. What Is UM/UIM Coverage?

Unlike liability insurance, which covers damage you cause to others, UM/UIM coverage helps you if the other driver doesn’t have insurance or not enough of it.

It’s an optional add-on in many states. That means it’s often left out or minimized in standard policies, despite being the only thing standing between you and a devastating out-of-pocket cost.

2. The Stats Are Alarming

According to Mike, one in eight drivers has no insurance at all. And one in three carries only the state minimums, which, in many places, won’t even cover the cost of a basic emergency room visit.

What happens when someone with no insurance hits you, and you’re injured, miss work, or require long-term care? Without UM/UIM, you may be forced to pay out of pocket even if the accident wasn’t your fault.

3. Real Stories, Real Consequences

Mike shares stories from his legal practice: A young attorney hit by a drunk driver. A cyclist was hit by someone with no assets and the bare minimum coverage. Their policies didn’t include enough UM/UIM, and they had to drain savings just to pay medical bills.

These aren’t fringe cases. They’re professionals who did everything right… except check this one policy detail.

4. How Much Does It Cost to Fix?

Here’s the good news:
For many people, adding $1 million in UM/UIM coverage costs about the same as a nice dinner out, especially if bundled with other policies.

It’s a small adjustment that could mean the difference between financial resilience and financial ruin.

Conclusion: Act Now, Not Later

Reviewing your UM/UIM coverage might take five minutes. But those five minutes may help the retirement you’ve worked decades to build.

📞 Talk to your insurance agent today

A #BiggerBolderRetirement is about more than just growing wealth; it’s about helping protect it.

Tune in today!

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Kaydan Wealth Management is not affiliated with podcast guests. The views shared are those of the host and guests and may not reflect the views of Kaydan Wealth Management. Content is for informational purposes only and should not be considered advice or a recommendation. Listeners should consult with their financial advisor, as well as legal and tax professionals, regarding their individual circumstances.