Orlando Harmon
Uninsured motorist coverage is a type of car insurance that protects you if you're hit by a driver who has no auto insurance. It covers your injuries, your passengers' injuries, and damage to your vehicle. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you're hit by a driver whose insurance is insufficient to cover the damages or injuries they caused. In the event of a hit-and-run accident, you can file a claim against your uninsured motorist coverage. While not all states mandate uninsured motorist coverage, it is highly recommended for all drivers, as nearly 13% of drivers countrywide do not have auto insurance.
| Characteristics | Values |
|---|---|
| What is uninsured motorist coverage? | Uninsured motorist coverage protects you if you're hit by a driver who has no auto insurance. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused. |
| Is it mandatory? | Not all states mandate uninsured motorist coverage, also known as UM coverage. However, even if UM coverage isn't required in your state, you take a serious risk if you drive without it. |
| What does uninsured motorist insurance cover? | Uninsured/underinsured motorist insurance covers your injuries, your passengers' injuries, and damage to your vehicle if you're hit by a driver who doesn't have enough or has no auto insurance coverage. |
| What are the types of uninsured motorist coverage? | There are two types of uninsured motorist coverage: Uninsured motorist bodily injury (UMBI) covers medical bills related to a crash, while uninsured motorist property damage (UMPD) pays for damage to your car. |
| What are the benefits of uninsured motorist coverage? | Uninsured motorist coverage can pay for lost wages, pain and suffering compensation, and funeral expenses. It can also cover medical expenses for you and your passengers. |
| How much does uninsured motorist coverage cost? | Uninsured motorist coverage costs an average of $136 a year, according to Forbes Advisor's analysis. |
What You'll Learn
Uninsured motorist bodily injury (UMBI) coverage
- A driver with no liability car insurance
- A hit-and-run driver
- A driver whose insurance company denies coverage or goes out of business
UMBI coverage can also pay for lost wages if you are unable to work due to the accident, as well as pain and suffering compensation. It is important to note that UMBI coverage does not pay anything to the uninsured driver; it pays you.
In some states, you can also purchase uninsured motorist property damage (UMPD) coverage, which pays for damages to your car if it is hit by an uninsured driver. Collision coverage, which is available in every state, can also cover vehicle damage, regardless of who is at fault.
Underinsured motorist (UIM) insurance is separate coverage but is sometimes packaged with UMBI. UIM pays for medical bills and other expenses if you or your passengers are injured in an accident caused by a driver who does not have enough liability insurance to cover your medical bills.
UMBI coverage is mandatory in many states and highly recommended for all drivers. If you are injured in an accident with an uninsured or underinsured driver, UMBI coverage can help pay for your medical treatments and any pain and suffering. It can also help cover medical expenses if you are injured as a pedestrian.
When determining how much UMBI coverage you need, consider matching the amount of your liability coverage. For example, if your liability limits are $50,000 per person and $100,000 per accident, you may want to choose the same limits for your UMBI coverage.
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Underinsured motorist bodily injury (UIMBI) coverage
UIMBI coverage is typically offered alongside Uninsured Motorist Bodily Injury (UMBI) coverage, which covers medical expenses if you are in an accident with a driver who has no insurance. Together, these coverages provide financial protection in the event of an accident involving an uninsured or underinsured driver.
With UIMBI coverage, you can claim compensation for medical bills, lost wages, pain and suffering, and funeral expenses. This coverage ensures that you and your passengers receive the necessary financial support for medical treatments and any pain and suffering resulting from the accident.
The amount of UIMBI coverage you need depends on your state's requirements and your personal situation. Some states require drivers to carry UIMBI coverage, while in others it is optional. It is recommended to have UIMBI coverage equal to your bodily injury liability insurance to ensure adequate protection.
UIMBI coverage is highly recommended, as it can provide crucial financial assistance if you are in an accident with an underinsured driver. Without this coverage, you may be responsible for paying medical bills and other expenses out of pocket, which can be a significant financial burden.
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Uninsured motorist property damage (UMPD) coverage
UMPD coverage can also help protect you if you are hit by a driver with insufficient property damage liability insurance. In this case, UMPD can help cover the extra costs that exceed the other driver's liability limits. Additionally, UMPD can cover damage to your home or other property caused by an uninsured or underinsured driver.
The availability and requirements for UMPD coverage vary by state. Some states offer it as optional coverage, while others require it to be included in car insurance policies. It's important to check your state's laws and requirements regarding coverage limits, deductibles, and unidentified drivers.
UMPD coverage is typically combined with uninsured motorist bodily injury (UMBI) coverage, which pays for injuries caused by an accident with an uninsured driver. Together, UMPD and UMBI can provide comprehensive protection in the event of an accident involving an uninsured or underinsured driver.
It's worth noting that UMPD coverage may not be necessary if you already have collision insurance, as collision coverage pays for damages to your vehicle regardless of who is at fault. However, UMPD can offer additional benefits, such as a lower deductible and coverage for damage to property other than your vehicle. Ultimately, the decision to opt for UMPD coverage depends on your state's requirements and your personal preferences for coverage.
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Underinsured motorist property damage (UIMPD) coverage
UIMPD is usually offered alongside uninsured motorist coverage, which covers damage caused by a driver with no insurance. Both types of coverage are mandatory in many states and highly recommended for all drivers.
UIMPD is not available in all states, and in some states, it will not cover hit-and-run accidents. In these cases, you would need collision coverage to pay for damage to your car.
UIMPD typically has a deductible, which varies by state and insurance company. When deductibles are required, they are generally low.
You can usually increase your UIMPD coverage above the minimum. Some states require you to carry UIMPD limits that match your liability limits.
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When to file a claim
When to File an Uninsured Motorist Claim
Uninsured motorist coverage is a type of car insurance that pays for medical expenses and other accident-related losses if you or your passengers are injured in a crash caused by an uninsured driver. This includes a driver with no liability insurance, a hit-and-run driver, or a driver whose insurance company denies coverage or goes out of business.
In some states, you can also purchase uninsured motorist property damage (UMPD) coverage, which pays for repairs to your vehicle if it is damaged by an uninsured driver. However, collision coverage, which is available in every state, can also cover these repairs, regardless of whether the other driver is insured.
If you've been in an accident with an uninsured driver, here are the steps to follow when deciding whether to file an uninsured motorist claim:
- Report the accident: Contact the police and your insurance company to report the accident. Exchange insurance information with the other driver if possible. If the police are present, they will inquire about insurance coverage for all drivers involved and inform you if the other driver is uninsured.
- Understand your coverage: Review your insurance policy to determine if you have uninsured motorist coverage and what it includes. Uninsured motorist bodily injury (UMBI) coverage pays for medical expenses, while uninsured motorist property damage (UMPD) coverage pays for vehicle repairs.
- Assess your damages: Evaluate the extent of your injuries, medical bills, lost wages, and other losses resulting from the accident. If your state offers UMPD coverage for hit-and-run accidents, consider the cost of repairing your vehicle.
- Notify your insurance company: Inform your insurance company of your intention to file an uninsured motorist claim as soon as possible. Provide them with the details of the accident, including the other driver's insurance information or the fact that they were uninsured.
- Understand the claims process: Filing an uninsured motorist claim is similar to a regular insurance claim. Your insurance company will investigate the accident, review your medical records, and assess the value of your claim. This process can take a few weeks to several months, depending on the severity of your injuries.
- Consider the benefits and repercussions: Weigh the benefits of filing a claim against any potential repercussions. Uninsured motorist coverage can help pay for your medical expenses, lost wages, and other losses. However, filing a claim may result in increased insurance rates or impact any insurance rate benefits or discounts you receive.
- Seek legal assistance: If you are unsure about your options or encounter issues with your claim, consider consulting an experienced attorney who can guide you through the process and protect your interests.
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Frequently asked questions
Uninsured motorist coverage protects you if you're hit by a driver with no auto insurance. Underinsured motorist coverage, which is usually offered alongside uninsured motorist coverage, protects you if you're hit by a driver who doesn't have enough coverage to pay for the damages or injuries they caused.
Uninsured motorist coverage can pay for medical expenses for you and your passengers, lost wages, pain and suffering, and funeral expenses. In some states, it will also cover your car damage.
Not all states mandate uninsured motorist coverage, but even if it isn't required in your state, you take a serious risk if you drive without it. According to the Insurance Research Council, about one in every seven U.S. drivers on the road does not have auto insurance.
After an accident, check for injuries and call emergency services if necessary. Call the police to respond to the accident. If they don't come, or if it's a hit-and-run, gather as much information as possible, including names, addresses, phone numbers of potential witnesses, and the license plate number of the other car. Take photographs of the accident scene. As soon as possible, file a claim with your insurance company, providing all the information you have gathered.
