Uninsured Motorist Coverage

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There are many types of coverage included in your car insurance policy. In some states, only two types of coverage are required by law: bodily injury and property damage. But both of these coverage types only protect you financially in the event that you cause injury or damage to another party. So what happens if you’re not at fault in an accident and the other driver doesn’t have insurance? In this case, you’ll need uninsured motorist coverage

What is uninsured motorist coverage?

Uninsured motorist coverage is a type of car insurance that protects you if you’re involved in an accident where the at-fault party does not have insurance, also known as an uninsured motorist. Without this type of insurance, you’d be stuck paying out of pocket for any injury or damage that resulted from the accident.

What is the difference between uninsured and underinsured motorist coverage?

  • Uninsured motorist coverage is insurance specifically to protect you from injury or damage caused by an entirely uninsured motorist.
  • Underinsured motorist coverage is a similar type of insurance that protects you if the other driver has insurance but it’s not enough to cover the full amount of damage and expenses. Your underinsured motorist policy will pay up to a set amount above the other driver’s policy limit.

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

  • Uninsured motorist bodily injury coverage, or UMBI, covers the medical expenses, lost wages and related costs for you and your passengers in an accident caused by an uninsured motorist or a hit-and-run accident.
  • Uninsured motorist property damage coverage, or UMPD, refers to coverage for damage to your car caused by an uninsured motorist or a hit-and-run accident.

Do I need uninsured motorist coverage?

It’s not necessarily a requirement for you to have uninsured motorist coverage, but it’s almost always a good idea to have it. Here are a few reasons why you might need uninsured motorist coverage or underinsured motorist coverage:

  • Some states require you to carry uninsured motorist coverage by law. Check your local rules or ask your insurance provider to see what the minimum requirements are.
  • If you’re in an accident, the chance of the other driver being an uninsured motorist or underinsured motorist is higher than you might think. An estimated 13% of drivers are currently uninsured – that’s one out of every eight people on the road. In some states, this number is even higher; it’s nearly 27% in Florida.
  • If you’re leasing or financing your vehicle, your financial institution may require you to have uninsured motorist coverage.

How much does uninsured motorist coverage cost?

The cost of uninsured motorist coverage depends on several factors, such as your state and type of vehicle.

Frequently asked questions

Do I need both uninsured motorist coverage and underinsured motorist coverage?

Depending on your local requirements and personal needs, you might just need one type of coverage or you may need both.

What happens if the damage and expenses in an accident exceed the at-fault driver’s policy limit?

Any damage and expenses above the limit of the at-fault driver’s policy roll over to other driver’s underinsured motorist coverage up to the limit of that policy

What is the limit of an uninsured or underinsured motorist policy?

Uninsured and underinsured motorist policies come in a wide range of coverage options, depending on the carrier and state. This can be anywhere from a few thousand dollars to over a million dollars.