Uninsured Motorist Coverage: Can You Insure The Uninsured?

Being involved in a car accident is stressful enough, but it can be even worse if the other driver doesn't have insurance or doesn't have enough insurance to cover the costs of the accident. This is where uninsured/underinsured motorist coverage comes in. This type of coverage can help protect you financially if you're in an accident with a driver who doesn't have insurance or doesn't have enough insurance to cover the costs of the accident.

Uninsured/underinsured motorist coverage is not required in all states, but it is highly recommended for all drivers. It can help pay for car repairs, rental cars, medical bills for you and your passengers, pain and suffering costs, and more. Without this coverage, you could be left paying out of pocket for these expenses.

In some states, uninsured/underinsured motorist coverage is mandatory, and in others, it is optional but must be offered to you when you purchase auto insurance. Even if it's not required in your state, it's worth considering adding this coverage to your policy for the extra peace of mind it can provide.

Uninsured motorist bodily injury (UMBI)

• A driver who doesn’t have any liability car insurance.
• A hit-and-run driver.
• A driver whose insurance company denies coverage or goes out of business.

UMBI coverage can pay for:

• Lost wages if you can’t work because of the car accident.
• Pain and suffering compensation.
• Medical bills for both you and your passengers.

UMBI coverage does not pay anything to the driver who had no insurance. It pays you.

In some states, you can also buy Uninsured Motorist Property Damage (UMPD) coverage. It pays for your car’s damages if an uninsured driver hits you. Note that collision coverage, which is optional and available in every state, can also cover your vehicle damage, whether the person that hit you is insured or not.

Underinsured Motorist (UIM) insurance is separate coverage but sometimes packaged with UMBI. UIM pays for medical bills and other expenses for you and your passengers if you’re in a car accident caused by a driver who doesn’t have enough liability insurance to cover your medical bills.

UMBI coverage is usually expressed as two numbers, such as 100/300. This translates to:

• $100,000 bodily injury coverage per person.
• $300,000 bodily injury coverage per accident.

So, if you have 100/300 and four passengers are injured, with high medical bills, your maximum UMBI payout is $300,000. However, you can generally turn to health insurance after your UMBI coverage is exhausted.

UMBI coverage is mandatory in many states and highly recommended for all drivers. If your state requires UMBI coverage, you must buy at least the state’s minimum. The minimum will typically be UMBI coverage in amounts that match your liability coverage amounts. For example, if you have liability limits of $100,000 for injury to one person and $300,000 for injuries in one accident (known as 100/300), you would buy 100/300 in UMBI coverage.

UMBI coverage costs an average of $136 a year, according to Forbes Advisor’s analysis.

Underinsured motorist bodily injury (UIMBI)

UIMBI coverage can help pay for your medical treatments and any pain and suffering. It also helps cover medical expenses if you're injured as a pedestrian. This coverage can be especially useful if you don't have collision insurance on your car.

The amount of UIMBI coverage you need can be determined by looking at the amount of bodily injury liability insurance you have. You can then get an equal amount of UIMBI coverage to ensure you have the same level of protection for yourself and your passengers.

If you're in an accident with an underinsured driver and have UIMBI coverage, it can help pay your expenses. Without it, you may be stuck paying medical bills out of pocket or through your health insurer. UIMBI coverage can provide financial protection and peace of mind, especially if you live in a state with a high rate of uninsured drivers.

Uninsured motorist property damage (UMPD)

UMPD is not available in all states, and in some states, it may not cover hit-and-run accidents. In these cases, you would need collision coverage to protect against this type of accident. Collision coverage will pay for damage to your car, regardless of who is at fault, while UMPD covers damage caused by an uninsured or underinsured driver.

The key difference between UMPD and collision coverage is that UMPD only covers damage caused by a driver with little or no insurance. Collision coverage, on the other hand, applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. UMPD also generally has a lower deductible than collision coverage, and it may be cheaper, especially if you have a pricey car.

Even if your state doesn't require UMPD, it may still be a good idea to have it. According to the Insurance Research Council, about one in eight drivers is uninsured, and many others have insufficient coverage. If you are hit by one of these drivers, UMPD can help cover the costs of repairing your car.

Underinsured motorist property damage (UIMPD)

UIMPD can provide valuable protection if you are in an accident with an underinsured driver. If the at-fault driver's insurance is not sufficient to cover the cost of repairs to your vehicle, UIMPD can help fill the gap. This can save you from having to pay for repairs out of your own pocket or pursuing a lawsuit against the other driver.

The amount of coverage provided by UIMPD can vary, and it is typically combined with underinsured motorist bodily injury coverage. The coverage limit is usually set at a single maximum amount that the policy will pay out for all property damaged in a single accident. This limit can range from \$3,500 to the vehicle's actual cash value, depending on the state and the specific policy.

UIMPD is not mandatory in all states, but it is highly recommended for all drivers. It can provide financial protection and peace of mind in the event of an accident with an underinsured driver. The cost of UIMPD can vary, but it is generally cheaper than collision coverage, making it a more affordable option for those looking to keep their premiums low.

When considering UIMPD, it is important to review the specific laws and requirements of your state, as they can vary widely. Some states require UIMPD to be offered to all car insurance customers, while others may only require it under certain circumstances. Additionally, the coverage limits and deductibles can also differ from state to state.

Collision coverage

If you already have collision coverage, you might not need UMPD since collision coverage applies to accidents with uninsured drivers. However, if you have a high collision deductible, UMPD may still be worth considering as it often has a lower deductible. Ultimately, the decision to purchase collision coverage or UMPD depends on factors such as the value of your vehicle, the likelihood of accidents, and your state's requirements and insurance options.

Frequently asked questions