Uninsured Motor Vehicle Insurance: What's Covered?

Uninsured Motorist (UM) coverage is a type of car insurance that covers injuries and damages caused by a driver with no insurance. UM coverage is required in many states and available as an add-on in others. It covers medical expenses for you and your passengers, and may also cover lost wages. In some states, UM coverage also includes uninsured motorist property damage (UMPD), which covers damage to your car. Underinsured Motorist (UIM) coverage is similar but applies when the other driver doesn't have enough insurance, rather than none at all.

Uninsured Motorist Bodily Injury (UMBI)

UMBI covers hospital bills, emergency care, rehabilitation, and follow-up visits related to the accident. It can also compensate for lost wages if your injuries interfere with your ability to work. UMBI can also cover funeral costs if there are fatalities.

In addition, UMBI protects you if you get hit by an uninsured driver while you are riding a bike or walking as a pedestrian.

UMBI comes with coverage limits, which depend on the insurer and the state. Coverage limits could start at as little as $5,000 and go up to $1 million. You will usually have two coverage limits to choose from: the maximum amount that will pay for injury expenses per person, and the total coverage for injuries per accident.

For example, if you choose coverage limits of $50,000 and $100,000, the insurance would pay up to $50,000 per person injured, and up to a maximum total of $100,000 for all injuries in the accident.

UMBI is currently required in about half of US states, including the District of Columbia, Illinois, New Hampshire, Massachusetts, and South Carolina. In states that require UMBI, there is a minimum amount of coverage that must be purchased, usually set at $25,000 per person and $50,000 per accident.

Even if your state does not require UMBI, it is worth considering, especially since it does not usually add much to insurance premiums. It is also recommended to purchase more than the minimum amount of coverage required.

If you have health insurance, it may cover your medical expenses if you are hit by an uninsured driver, but this depends on how comprehensive your health insurance is. UMBI can be useful in these cases as it can help with lost wages, which health insurance usually does not cover.

Uninsured Motorist Property Damage (UMPD)

UMPD can help protect you financially in the event of a collision with an uninsured or underinsured driver. It can cover the cost of repairs to your vehicle, as well as any extra costs that may arise if the other driver does not have sufficient property damage liability insurance. In some states, UMPD may also cover damage to your home or other property.

It is worth noting that UMPD has limitations. For example, in some states, UMPD will not cover a hit-and-run accident, and you may need separate collision coverage for such scenarios. Additionally, there may be a deductible associated with UMPD, which is the amount you need to pay before your insurance coverage kicks in. The deductible amount can vary by state and is typically between $200 and $500.

UMPD is different from collision coverage, which applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of who is at fault. While UMPD specifically covers damage caused by an uninsured or underinsured driver, collision coverage offers protection in a wider range of scenarios. Therefore, if you are primarily concerned about damage to your vehicle, collision coverage may be a more comprehensive option.

Underinsured Motorist Bodily Injury (UIMBI)

UIMBI is designed to cover the gap between your costs and the other driver's ability to pay. It can also cover you if you are injured by a car as a pedestrian.

UIMBI is mandatory in some states and available as an add-on in others. It is generally recommended for all drivers, as it can save you tens of thousands of dollars if you are hit by an underinsured driver.

You can usually choose the insurance limits of your coverage. For the bodily injury portion, it is recommended to match the amount of your liability coverage. For example, if your liability coverage is $50,000 per person/$100,000 per accident, you should choose the same limits for UIMBI.

UIMBI does not usually include a deductible, so it can offset a high health insurance deductible. It is also beneficial if your health insurance has a high deductible or does not cover injuries sustained in an auto accident.

Underinsured Motorist Property Damage (UIMPD)

UIMPD provides coverage for damage to your car or other property caused by a driver with insufficient insurance. This coverage is especially useful if you are involved in a hit-and-run accident, as it can help cover the costs of repairs or replacement of your vehicle.

The coverage limits and deductibles for UIMPD can vary by state, and it may be mandatory or optional depending on where you live. In some states, UIMPD is required by law, while in others, it must be offered to customers but can be declined.

It's worth noting that UIMPD usually has a lower deductible than collision coverage, and it may cover damage to both your vehicle and other property. However, collision coverage provides protection regardless of who is at fault in the accident.

When considering UIMPD, it's important to review the specific coverage options, limits, and requirements in your state. Additionally, it's recommended to consult with a trusted insurance provider to ensure you have the right coverage to protect yourself financially in the event of an accident with an underinsured driver.

Uninsured Motorist Coverage Requirements

Uninsured motorist coverage is a type of car insurance that pays for injuries and damages caused by a driver with no insurance. Hit-and-run drivers are also considered uninsured motorists. This coverage is required in many states and available as an add-on to your car insurance policy in others.

States Where UM Coverage is Required

Uninsured motorist coverage is mandatory in the following states:

• Connecticut
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• West Virginia
• Wisconsin
• Washington, D.C.

In New Hampshire and Virginia, UM coverage is required if you choose to purchase car insurance. In Rhode Island, it's mandatory if you opt for a liability coverage limit higher than the state minimum. New Jersey requires UM coverage for standard auto policies but not for basic policies.

UM Coverage Limits

If your state mandates UM coverage, you must buy at least the minimum amount set by the state. Typically, the minimum UM coverage limits match your liability coverage amounts. For instance, if your liability limits are $100,000 for injury to one person and $300,000 for injuries in one accident, your UM coverage would be 100/300.

Types of UM Coverage

There are two main types of uninsured motorist coverage:

• Uninsured Motorist Bodily Injury (UMBI): This covers medical bills, pain and suffering, lost wages, and funeral expenses after a crash with an uninsured driver. It may also cover you if an uninsured driver hits you as a pedestrian or cyclist.
• Uninsured Motorist Property Damage (UMPD): This covers damage to your car or property after an accident with an uninsured driver. Some states mandate a deductible for this type of coverage, meaning you pay a certain amount before your insurance covers the rest (up to your policy limit).

Stacking UM Coverage

In some states and with certain insurers, you may have the option to "stack" your UM coverage. This means that, for an extra cost, you can combine UM bodily injury limits for multiple vehicles under one policy or across several policies in your name, increasing your overall coverage in an accident.

Frequently asked questions