Uninsured Motorist Coverage

Nearly every state requires drivers have liability insurance. Drivers can have their liability insurance cover them if they cause injury or property damage while driving.

Yet, many people drive without the legally required liability insurance. According to the Insurance Information Institute (III , one-eighth of all drivers are not insured today.

What happens if you are not at fault for an accident, but the other driver has no insurance? Uninsured motorist coverage is required in this situation.

What is Uninsured Motorist coverage?

Uninsured motorist coverage is a form of car insurance. It protects you in case you are involved with an accident where the at fault party doesn’t have insurance. They are called an uninsured driver. You would be responsible for any injuries or damages that are caused by the accident without this type of insurance.

For example, let’s say you get rear-ended by a car while driving, and that the other driver is clearly at fault for the accident. The other driver is not covered by your insurance. You then get out of the car to exchange information. You could find yourself financially compromised because you can’t call their insurance to cover the damage they caused. Uninsured motorist coverage means that you can get your own policy to repair your vehicle, up to the policy limits.

Uninsured motorist coverage may also be available in some states if you are the victim of a hit and run.

Types of coverage for uninsured motorists

You will need liability coverage if you reside in a state with strict requirements. This covers both injuries and property damage. The same applies to uninsured motorist coverage:

Uninsured motorist bodily Injury (UMBI) coverage

If you or your passengers are hurt in an accident with uninsured drivers, this covers the costs. Some UMBI policies will cover your medical bills and hospital costs up to the limits of your policy. However, if you are unable to work due to injuries, some UMBI policies will cover your lost wages.

Uninsured motorist property loss (UMPD) coverage

This is your uninsured motorist coverage which will pay to fix or replace your vehicle (up to your policy limits), after an accident with an insured driver.

What is the difference in coverage for uninsured or underinsured motorists?

  • Uninsured motorist insurance is insurance that protects you against injury or damage from an uninsured driver.
  • Underinsured motorist coverage covers you if another driver has insurance, but not enough to cover all damages and expenses. Your policy covering underinsured motorist will pay up to the policy limit of the other driver.

What is the difference between uninsured motorist bodily injury coverage (UMBI), and uninsured motorcyclist property damage coverage (UMPD).

  • Uninsured motorist bodily Injury coverage (UMBI) covers your medical expenses, lost wages, and other costs for you and your passengers in an uninsured driver or hit-and-run collision in certain states. In others, your personal injury protection (PIP), might be used.
  • Uninsured motorist damage coverage (or UMPD) covers damage to your vehicle caused by an uninsured driver or hit-and run accident in certain states. In other states, your collision coverage will be used after a hit and run.

What about uninsured motorist coverage

Uninsured motorist coverage is recommended, even if it’s not required by your state. These are just a few of the reasons you might need to have uninsured or underinsured driver coverage.

  • Nearly half the states require that their residents have uninsured/underinsured motorist coverage. Ask your insurance provider for information about the minimum requirements. You can also check it yourself. You can find the Insurance Information Institute’s uninsured driver page. Scroll down to “Automobile Financial Responsibility Limits by State” about halfway down the page. Uninsured motorist coverage is required if your state is listed as UM.
  • The chances of another driver being uninsured or underinsured if you are involved in an accident are higher than you might think. According to the III, nearly 13% of drivers are uninsured . This is one in eight road users. This number can be even higher in some states. Florida has the highest proportion of uninsured drivers among all states at 27%. Mississipi (New Mexico), Michigan, and Tennessee round out the top five. At least one fifth of drivers in all these states is uninsured.
  • Your financial institution might require that you have uninsured motorist coverage if you lease or finance your vehicle.

What is the cost of uninsured motorist insurance?

Uninsured motorist coverage costs and is dependent on many factors such as your location and vehicle type. Despite this, the cost of coverage is usually low-impact. For example, Hanover can indicate it could cost as low as $67 per year.

Compare policies with a few auto insurance companies in order to determine how much you will pay for this vital protection.

Questions frequently asked

Are I required to have both underinsured and uninsured motorist coverage?

You may only need one type depending on your needs and local requirements.

What happens if an accident causes more damage than the policy limit for the at-fault driver?

Any damages or expenses beyond the policy limit for the at-fault driver roll over to coverage for the underinsured driver up to that policy’s limit.

What is the maximum amount of coverage for an uninsured or partially insured motorist policy?

There are many coverage options available for uninsured or underinsured motorist policies, depending on which carrier you choose and what state you live in. These policies can cost anywhere from a few thousand to more than a million dollars.