Alyssa Lane
Uninsured motorist coverage is a type of car insurance that can pay for medical expenses and damage to your car if you are involved in an accident caused by a driver who doesn't have insurance, or doesn't have enough insurance to cover the costs. This type of insurance can also cover you in the event of a hit-and-run accident, where the driver at fault cannot be identified.
| Characteristics | Values |
|---|---|
| What it covers | Car repairs and replacement of property in your car, rental car, medical bills for you and your passengers, pain and suffering costs, and diminished value of your car |
| When to use | When the driver who caused the accident doesn't have insurance or doesn't have enough insurance |
| Who needs it | Anyone who drives |
| How much coverage | You can usually add more coverage in $5,000 increments |
| Cost | Relatively low, but can be more expensive in states with a higher number of uninsured drivers |
| Stacking | You may be able to combine coverage for multiple vehicles to increase the overall coverage in an accident |
What You'll Learn
Uninsured Motorist Bodily Injury (UMBI)
UMBI coverage varies according to the terms of your policy and state laws, but in general, it pays, up to the limit of your policy, for medical bills, pain and suffering, lost wages if you can't work after an accident, and funeral expenses. Policy limits for UMBI coverage are per person and per accident and are typically written as two numbers, such as $25,000/$50,000, indicating the maximum payout per person and the maximum payout for all people injured in one accident.
Depending on your state, UMBI coverage may be mandatory or optional. In some states, it is required to be offered, but you can decline the coverage in writing. If you carry UMBI coverage, your limits for this coverage may be required to be the same or lower than your bodily injury liability limits. It is generally recommended to have UMBI coverage that matches your liability coverage amounts.
UMBI coverage can provide valuable protection, especially considering that about one in eight drivers nationwide drove uninsured in 2019, according to a 2021 study. This coverage can help ensure that you are not left with significant financial burdens if you are involved in an accident with an uninsured driver.
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Underinsured Motorist Bodily Injury (UIMBI)
UIMBI is usually packaged with Uninsured Motorist Bodily Injury (UMBI) coverage. UMBI pays for the same types of expenses but after a crash with a driver who has no insurance.
UIMBI covers you, your family members, and your passengers. It may also cover you if an underinsured driver hits you as a pedestrian or while you are riding your bike.
UIMBI does not include a deductible. If you have a high deductible on your health insurance, UIMBI can be beneficial.
UIMBI is mandatory in many states and highly recommended for all drivers.
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Uninsured Motorist Property Damage (UMPD)
UMPD is designed to cover the costs of repairing or replacing your vehicle if it is damaged by an uninsured or underinsured driver. This can include damage to your vehicle and, in some states, belongings inside your vehicle. It is important to note that UMPD only covers damage caused by a driver with little or no insurance. If you are concerned about damage to your vehicle in any situation, collision coverage may be a better option as it covers a wider range of scenarios.
UMPD is usually purchased alongside Uninsured Motorist Bodily Injury (UMBI) coverage, which covers injuries to yourself and your passengers. Together, these two types of coverage are known as Uninsured/Underinsured Motorist Coverage. This coverage can help pay for medical bills, car repairs, rental cars, pain and suffering costs, and diminished value if your car is worth less after an accident.
The deductible for UMPD coverage may vary depending on your state and insurer, and in some states, UMPD will not cover hit-and-run accidents. It is recommended to review the specific requirements and limitations of UMPD coverage in your state and consult with an insurance agent to determine the best coverage options for your needs.
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Underinsured Motorist Property Damage (UIMPD)
UIMPD is typically combined with Uninsured Motorist Bodily Injury (UMBI) coverage, which pays for injuries caused by a crash involving an uninsured driver. Together, UIMPD and UMBI can provide valuable protection in the event of an accident with an underinsured or uninsured driver.
The requirements and availability of UIMPD vary by state. Some states require insurers to offer UIMPD, while others make it optional or do not offer it at all. Additionally, some states mandate a deductible for UIMPD coverage, which is the amount subtracted from a claim payout. This deductible typically ranges from $200 to $500.
When deciding whether to purchase UIMPD, consider the value of your vehicle and whether you already have collision insurance. Collision insurance covers vehicle damage regardless of fault, so UIMPD may be unnecessary if you already have this coverage. However, UIMPD generally has a lower deductible than collision coverage and may offer additional protection for damage to your vehicle and other property.
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Collision Coverage
While collision coverage will cover damage to your vehicle in a variety of circumstances, it will not cover medical expenses. If you want your insurance to cover medical bills resulting from a car accident, you will need to purchase uninsured motorist bodily injury coverage.
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Frequently asked questions
Uninsured motorist coverage is a type of car insurance that can pay for medical expenses and damage to your car if you are involved in an accident caused by a driver who doesn't have insurance, or doesn't have enough insurance to cover the costs.
Uninsured motorist coverage can pay for medical expenses, lost wages, pain and suffering, and funeral expenses. It can also pay for damage to your car, and the cost of a rental car if you need one.
Uninsured motorist coverage is mandatory in some states, but not all. Even if it's not required in your state, it's a good idea to have it. Around 13% of drivers nationwide don't have auto insurance, so there's a significant risk of being in an accident with an uninsured driver.
The cost of uninsured motorist coverage varies depending on the state and the number of uninsured drivers there. It's generally relatively low, but it can be more expensive in states with a higher number of uninsured drivers.
If you're buying a new policy, you can include uninsured motorist coverage when you get a quote. If you already have a policy, you can log in to your account or call your insurance provider to add it.
