Uninsured Motorist Auto Insurance: What Does It Cover?

Uninsured motorist coverage is a type of car insurance that protects you and your passengers in the event of an accident with an uninsured or underinsured driver. It covers medical expenses and, in some cases, damage to your vehicle. This type of insurance is mandatory in many states and is highly recommended for all drivers, as it provides financial protection in case of an accident with a driver who may not have sufficient insurance coverage. Without uninsured motorist coverage, you could be responsible for paying medical bills or vehicle repairs out of your own pocket.

Uninsured motorist bodily injury (UMBI)

UMBI is mandatory in some states and optional in others. Even if it's not required in your state, it's highly recommended, as it offers important financial protection in the event of an accident. Without UMBI, you could be responsible for paying medical bills or other expenses out of pocket.

The amount of UMBI coverage you need will depend on the state you live in and the level of coverage you want. In some states, you must purchase at least the minimum amount required by law, while in others, you can choose the coverage limits that best suit your needs. It's a good idea to match your UMBI limits to your liability coverage limits to ensure you have adequate protection.

UMBI is an essential component of uninsured motorist coverage, which can also include uninsured motorist property damage (UMPD) coverage. Together, these coverages can help protect you from the financial burden of an accident involving an uninsured or underinsured driver.

Uninsured motorist property damage (UMPD)

UMPD is mandatory in some states, optional in others, and unavailable in about half of all states. It is often combined with uninsured motorist bodily injury (UMBI) coverage, which covers injuries to yourself and your passengers. UMBI is mandatory in some states, while others may only require UMBI, or UMBI and UMPD together.

UMPD is distinct from collision coverage, which applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. If you already have collision coverage, you may not need UMPD. However, UMPD generally has a lower deductible than collision coverage and may cover damage to both your vehicle and other property.

In some states, UMPD won't cover a hit-and-run unless the driver is identified. There may also be a deductible for UMPD coverage, usually between $200 and $500, which is subtracted from the claim payout. The limit for UMPD payouts is typically the same as your property damage liability insurance.

While not all states mandate UMPD, it is highly recommended for all drivers. According to the Insurance Information Institute, nearly 13% of drivers countrywide don't have auto insurance, and in some states, this number rises to over 20%. If you're hit by one of these drivers, UMPD can help cover the cost of repairs to your vehicle.

Underinsured motorist bodily injury (UIMBI)

UIMBI coverage typically pays for medical bills for both you and your passengers, as well as any pain and suffering you may experience as a result of the accident. In some cases, it may also cover lost wages if you are unable to work due to your injuries. This can be especially important if you are the primary breadwinner for your family or if you do not have savings to fall back on.

The specific details of UIMBI coverage can vary from state to state, and it is important to understand the requirements and options available to you in your state. In some states, UIMBI coverage is mandatory, while in others it is optional. Even if it is not required in your state, it is highly recommended for all drivers, as it can provide valuable financial protection in the event of an accident.

When purchasing UIMBI coverage, you will typically have the option to choose the insurance limits of your policy. It is generally recommended to select coverage limits that match your liability coverage amounts. For example, if you have liability coverage of $100,000 per person and $300,000 per accident, you would choose the same limits for your UIMBI coverage. This ensures that you have sufficient protection in the event of a serious accident.

In addition to UIMBI coverage, there are other types of uninsured and underinsured motorist coverages that you may want to consider, including uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). These coverages can provide additional financial protection in the event of an accident with an uninsured or underinsured driver and help ensure that you and your vehicle are properly taken care of.

Underinsured motorist property damage (UIMPD)

UIMPD is especially useful if you are in an accident with an underinsured driver and your car or property is damaged. It can help cover the cost of repairs, so you don't have to pay out of pocket. The coverage limit for UIMPD is typically the same as your property damage liability insurance limit, and some states require a deductible for this coverage type, ranging from $200 to $500.

UIMPD is required in some states, including New Hampshire, North Carolina, South Carolina, Vermont, Virginia, Washington, D.C., and West Virginia. In other states, it is optional, and you may be able to reject it in writing. If you already have collision coverage, you may not need UIMPD as both cover damage caused by an uninsured or underinsured driver. However, UIMPD generally has a lower deductible and may cover damage to both your vehicle and other property.

When UM coverage is required

UM coverage is required in several states, including Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, West Virginia, Wisconsin, and the District of Columbia.

In some states, UM coverage is required only in certain situations. For example, in New Hampshire and Virginia, UM coverage is mandatory if you purchase car insurance. In Rhode Island, UM coverage is required if you choose a liability coverage limit higher than the state minimum. In New Jersey, UM coverage is necessary if you opt for a standard auto policy, but not for a basic policy.

Additionally, some states mandate UM coverage in specific circumstances. For instance, in Illinois, both uninsured and underinsured motorist coverage are required. In Massachusetts and South Carolina, only uninsured motorist coverage is mandated.

The requirement for UM coverage varies across states, and it is recommended to review the specific regulations in your state to ensure compliance with the applicable laws.

Frequently asked questions