What is Uninsured Motorist Coverage?

Does your auto insurance policy protect you, your family, and your passengers if involved in an accident caused by someone who doesn’t have insurance? 

While most states require drivers to purchase auto insurance, not all do. The numbers vary by state, but the Insurance Information Institute reports that one in eight drivers are uninsured. Check if Uninsured Motorists Coverage is on your auto policy.

What is Uninsured Motorists Coverage? 

Each state defines and determines its rules regarding Uninsured Motorists Coverage. Generally, there are two parts to it:

Uninsured Motorists Bodily Injury (UMBI) pays for medical bills, lost wages, pain and suffering, and funeral expenses for you, your family, and your passengers if you are in a car accident caused by a driver:

• Who doesn’t have liability car insurance
• Whose insurance company denies coverage or goes out of business
• Who causes a hit-and-run accident

Uninsured Motorists Property Damage (UMPD) pays to repair or replace a vehicle or other property that is wrecked by a driver who does not have insurance to pay the damages.

What is Underinsured Motorists Coverage? 

It is similar to Uninsured Motorists Coverage. The difference is the at-fault driver has auto insurance, but their limits are too low to cover your damages. After the at-fault driver’s insurance pays their total limit, your Underinsured Motorists Coverage will cover the remaining amount owed to you, within your policy limit.

What else should I know about Uninsured and Underinsured Motorists Coverages?

In some states, Uninsured and Underinsured Motorists are one coverage with one limit and one premium. In other states, they are separate coverages with different limits and premiums. Uninsured and Underinsured Motorists Coverages may be required or optional. Uninsured Motorists Property Damage and Underinsured Motorists Coverages are not available in all states.

Check your auto insurance policy or ask your insurance agent about Uninsured and Underinsured Motorists Coverages. These coverages help protect you and your loved ones without worrying about what insurance other drivers have, if any.