Top Uninsured Motorist Insurance Coverage: What You Need to Know

Uninsured motorist insurance helps protect you, your passengers, and your property in the event of an accident caused by someone who does not have auto insurance. 

In some states, uninsured motorist coverage is required, but it can be added to a policy in any state. It’s generally affordable, so there’s no reason not to add it to your policy if you haven’t already. 

Understanding how uninsured motorist coverage works is vital for anyone looking to stay safe on the roads. This guide will break down all of the facts about uninsured motorist insurance.

What is uninsured motorist insurance coverage?

Uninsured motorist coverage protects you in the event of an accident involving a driver who does not have liability insurance or if the other person involved fails to exchange information with you before leaving the scene.

Underinsured motorist coverage (sometimes bundled with uninsured motorist coverage) guards you against financial loss in cases where the at-fault driver does not have sufficient insurance to pay for all damages caused. 

For instance, if your medical bills amount to $25,000, but the other person only has $15,000 in bodily injury coverage, this policy can cover what remains. 

Uninsured motorist coverage can also help to protect you from hit-and-run drivers. If you are in an accident that was not your fault and the other driver leaves the scene without exchanging information, uninsured motorist coverage may be able to cover some of the damages that result. 

It is important to note that uninsured or underinsured motorist coverage does not replace liability insurance. Liability insurance should still be obtained to protect yourself from paying for medical bills and property damage if it turns out you were at fault for a crash. 

Uninsured and underinsured motorist coverage adds another layer of protection against financial losses when involved in a crash with someone who either doesn’t have insurance or lacks sufficient coverage. Find out how long an accident stays on your record.

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What is covered by uninsured motorist coverage?

Uninsured Motorist Bodily Injury (UMBI) insurance, also known as Uninsured Motorist (UM) insurance, is a type of coverage that financially protects you in the event of bodily harm caused by an uninsured motorist. 

It covers medical expenses, lost wages, and pain and suffering for you and your passengers in an accident with an uninsured driver. UMBI may even provide coverage if you’re involved in a hit-and-run or injured as a pedestrian.

Uninsured Motorist Property Damage (UMPD) insurance is designed to cover vehicle repairs or damage to other types of personal property resulting from an accident involving an uninsured driver. 

In addition to these two forms of protection, many insurers also offer underinsured motorist (UIM) coverage. This type of insurance is not the same as uninsured motorist coverage but provides similar benefits. 

UIM covers the gap between an at-fault driver’s lack of insurance and the costs associated with bodily injury or physical damages.

What are the different uninsured motorist coverage variations?

Uninsured motorist coverage is a type of insurance that covers losses and damages caused by an uninsured driver. It helps to protect the insured against financial loss if they are the victim of an accident with an uninsured or underinsured driver. 

In most states, this coverage is required in order for drivers to have adequate protection against potential losses. 

There are several different variations of uninsured motorist coverage available:

• Bodily injury (BI) coverage
• Property damage (PD) coverage
• Personal injury protection (PIP)

Let’s explain each variation in detail. Bodily Injury coverage pays for medical expenses, lost wages, and other damages resulting from an accident involving an uninsured motorist. 

Property Damage coverage pays for physical damage to another person’s property caused by an uninsured or underinsured driver. Personal Injury Protection coverage pays for medical expenses, lost wages, and other damages resulting from an accident involving an uninsured or underinsured motorist. 

In addition to these different types of auto insurance coverage, each state has its own laws and regulations regarding the amount of uninsured motorist insurance that are required.

It is important to check with your local department of motor vehicles or insurance provider to find out what the requirements are in your state. 

Some states may even require a minimum amount of uninsured motorist coverage before issuing a driver’s license or registering a vehicle. 

It is important to understand what type of uninsured motorist coverage you need in order to ensure adequate protection against potential losses caused by an uninsured driver.

What are the standard uninsured motorist coverage limits?

Uninsured Motorist (UM) coverage typically comes in the form of two numbers, for example, 100/300. This means that you have the following:

• $100,000 in bodily injury protection per individual injured 
• $300,000 in bodily injury protection per accident

So, if four people were hurt with costly medical bills, your maximum UM payout would be capped at $300,000. In cases where this is exceeded, health insurance can often help to cover the remainder of expenses. 

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How much uninsured motorist insurance do I need?

When it comes to determining how much uninsured motorist insurance you need, the answer depends on your personal situation. 

Generally speaking, purchase as much coverage as possible to protect yourself from financial loss in the event of an accident with an uninsured driver. 

In many cases, this could mean obtaining higher limits than those required by your state’s minimums or purchasing additional add-on coverages that provide extra protection for medical costs and other expenses related to a serious injury.

To ensure you have sufficient coverage, consider factors such as the value of your vehicle, any existing health insurance policies you may have, and any potential legal fees associated with a lawsuit stemming from an accident. 

It is essential to understand that although some states offer minimum coverage requirements, these may not cover the total costs of an accident involving an uninsured driver.

Therefore, it is important to review your policy in detail and understand what exactly is covered and how much protection you will have if you are involved in a collision with an uninsured motorist.

It is also important to remember that even if you purchase additional coverage for uninsured motorist insurance, there are still certain risks associated with driving without being properly insured.

For instance, if you cause an accident while uninsured or underinsured, you could be held financially liable for any damages caused by the other driver’s negligence. 

If this happens, it could lead to significant financial losses, which may take years to overcome. With this in mind, review your available options and make an informed decision regarding the amount of uninsured motorist coverage that is right for you. 

Ultimately, having enough coverage can provide peace of mind while also protecting you from financial ruin in the event of an accident with an uninsured driver.

What are the different state laws for uninsured motorist coverage?

More than 20 US states require drivers to carry uninsured motorist coverage (UM). In other states, insurance providers are required to offer UM policies, but they are not mandatory. 

A smaller number of states mandate underinsured motorist coverage (UIM). Below is the complete list of these states and the minimum liability limits for each policy. 

Auto Insurance Minimum Requirements Per State

If you live in any of these states, you’re free to meet just the basic minimum requirements if you want to save money on auto insurance. 

How do I make an uninsured motorist claim?

If you are involved in an accident with an uninsured driver, you may be able to make an uninsured motorist claim. To do this, you need to contact your insurance provider and let them know about the incident.

They will then assess the situation and inform you of your claim options. Depending on your state, specific laws may dictate what type of claims can be made against an uninsured motorist.

Your insurance provider will provide information on filing a claim, including any applicable forms or documents that need to be submitted. You should also take photographs of the damage and keep other relevant records, such as police reports or medical bills associated with the accident.

It is important to note that each state has different requirements for making uninsured motorist claims, so please consult with your insurance provider or a lawyer to determine what is required in your area.

Once the claim is submitted and accepted, your insurance company will compensate you for any damages or medical bills incurred due to the accident. You may also be eligible for additional compensation if the driver at fault was deemed to be grossly negligent in their actions.

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Uninsured Motorist vs. Underinsured Motorist Insurance

Uninsured motorist (UM) and underinsured motorist (UIM) insurance are both forms of liability coverage that provide protection if you are involved in an automobile accident with a driver who lacks valid auto insurance. In most states, UM/UIM coverage is mandatory, meaning it must be included in your car insurance policy at all times. 

The primary difference between UM and UIM coverage is how they protect you financially. 

With uninsured motorist coverage, your insurer will cover any medical costs incurred due to the accident and property damage caused by the uninsured driver up to the limits specified by your policy. 

On the other hand, underinsured motorist coverage pays for damages if the other driver’s insurance policy does not cover the full amount of your losses. 

When purchasing auto insurance, it is important to understand the differences between UM and UIM coverage in order to ensure that you are adequately covered in the event of an accident with an uninsured or underinsured driver. 

In most cases, both forms of coverage can be purchased together at a relatively low cost and will provide you with peace of mind should an accident occur. 

Ultimately, this type of protection is essential for anyone who wants to be sure they have adequate coverage for any eventuality on the road.

When should you purchase uninsured motorist insurance coverage?

When it comes to deciding whether or not to purchase uninsured motorist insurance coverage, there are a few factors that should be taken into consideration. 

If your state does not require UM coverage, you may be wondering if you should add it to your auto insurance policy. Here are some points to consider when making this decision: 

• Consider the probability of an accident with an uninsured driver in your area. There is no way to predict when an accident involving an uninsured motorist might occur, but evaluating the likelihood of one happening in your area can help you decide if adding UM coverage is right for you. 
• Evaluate any property damage or medical costs resulting from an accident. Without UM coverage, any repair or medical bills resulting from an accident with an uninsured motorist would be your responsibility, so it’s important to weigh the potential costs. 
• Consider the cost of purchasing UM coverage. Adding UM coverage to your auto insurance policy typically comes with an additional premium, depending on the amount of coverage you choose. Make sure to compare and shop for quotes from various insurers in order to get the best rate available.

Learn how to buy auto insurance.

Does UM cover hit-and-run accidents?

Hit-and-run accidents can happen between cars, a car and property, or a car and pedestrian. Depending on your state, uninsured motorist insurance may cover damage to your vehicle or yourself if you are the victim of a hit-and-run accident. 

Two types of coverage typically exist for this matter: 

• Uninsured motorist property damage (UMPD): This pays for repairs to your car or property.
• Uninsured motorist bodily injury (UMBI): This covers medical bills following an injury. 

Be aware that UMPD is not available in all states or may come with a deductible. Additionally, some states do not allow UMPD coverage for hit-and-run accidents at all. 

However, collision auto insurance coverage can be utilized to pay for car repairs. These states include California, Colorado, Georgia, Illinois, Louisiana, and Ohio.

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Should I purchase UM coverage for property damage?

Do you need Uninsured Motorist Property Damage (UMPD) coverage if you already have collision insurance? Unless your state requires it, the answer is likely no. This is because collision coverage covers damage to your car regardless of who caused the accident. 

UMPD only applies in certain situations, but usually comes with a lower deductible than what you would choose for a collision policy.

According to data from the National Association of Insurance Commissioners, the average claim payment for UMPD is $1,926. Ultimately, it’s up to you to decide whether or not this coverage makes sense for your vehicle and financial situation. 

Consider researching different providers and weighing out the pros and cons before deciding on a plan that works for you.

Case Studies: Top Uninsured Motorist Insurance Coverage

Case Study 1: The Hit-and-Run Incident

Sarah was hit by a driver who fled the scene, leaving her injured and her car damaged. Luckily, she had uninsured motorist coverage that helped with medical expenses and repairs. Without this coverage, she would have faced the financial burden alone.

Case Study 2: The Underinsured Driver

John was involved in a severe collision caused by a negligent driver who had the minimum liability coverage required by law. Unfortunately, John’s medical bills and vehicle repair costs exceeded the at-fault driver’s coverage limit. Luckily, John had uninsured motorist insurance with higher coverage limits, allowing him to bridge the gap and fully recover the expenses associated with the accident.

Case Study 3: The Faulty Insurance Policy

Mary’s car was rear-ended at an intersection by an insured driver, but it turned out their policy had lapsed. Fortunately, Mary had uninsured motorist coverage which covered the damages and medical costs, preventing financial hardship.

Case Study 4: The Stolen Vehicle Incident

Jack’s car was stolen from a supposedly safe neighborhood, and he didn’t have comprehensive coverage. However, his uninsured motorist policy included theft coverage, which allowed him to receive compensation for the stolen vehicle.

Case Study 5: The High-Risk Accident

Mark was hit by an uninsured driver who ran a red light, causing a severe collision and significant injuries. His uninsured motorist coverage covered his medical expenses and compensated for lost wages, helping him financially during his recovery. The coverage proved crucial in restoring Mark’s financial stability during this difficult time.

Uninsured Motorist Insurance Coverage: Final Words

Uninsured motorist insurance coverage can provide a valuable layer of protection while driving, but it is crucial to understand the differences between uninsured motorist and collision coverage. The coverage you choose should depend on your circumstances and needs. 

Overall, it’s also important to compare rates from different insurers to find the best rate for the amount of coverage you need.

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