Uninsured motorist coverage and underinsured motorist coverage (UM/UIM)
What happens if another driver hits you and doesn’t have enough liability coverage to pay for all of the damages or injuries they caused? Or what if you’re the victim of a hit-and-run accident? Uninsured motorist coverage and underinsured motorist coverage can help protect you when the at-fault driver doesn’t have enough coverage, or even worse, no coverage at all.
Uninsured motorist insurance can help repair damage to your vehicle in a hit-and-run accident.
What is uninsured motorist coverage?
Uninsured motorist (UM) coverage is a type of car insurance coverage that helps pay for your medical expenses, lost wages, and other out-of-pocket expenses if you’re injured in an accident caused by a driver who has no car insurance. UM coverage can also help pay for damage to your car if you’re in an accident with an uninsured driver.
Quick UM coverage facts
Uninsured or underinsured motorist protection:
- Applies when the responsible driver lacks sufficient (or any) liability insurance.
- Helps prevent you from covering accident expenses for an incident you didn’t cause.
- Typically increases your premium in states with a higher number of uninsured drivers.
What is the difference between uninsured motorist coverage and underinsured motorist coverage?
Uninsured motorist coverage helps pay for your damages if you’re in an accident caused by a driver who doesn’t have any insurance. Underinsured motorist coverage (UIM) helps if you’re in an accident and the at-fault driver doesn’t have enough liability coverage to cover the damages incurred in the accident.
How does uninsured & underinsured motorist coverage work?
If you’re in an accident caused by another driver, the at-fault driver’s car insurance is supposed to pay for your car repairs and the medical costs incurred by you and your passengers as a result of the accident. If the at-fault driver doesn’t have car or motorcycle insurance, or doesn’t have enough liability coverage to pay for your damages, you may be responsible for paying those costs out of pocket. UM and UIM insurance will help cover the gap between your costs and the at-fault driver’s ability to pay.
Is uninsured/underinsured motorist coverage required?
While not all states require it, many states do require UM/UIM insurance. Check with your state insurance department for required coverages.
Types of uninsured and underinsured motorist coverage
There are two types of uninsured and underinsured motorist coverages: uninsured motorist bodily injury (UMBI/UIMBI) and uninsured motorist property damage (UMPD/UIMPD). UMBI/UIMBI helps cover your medical expenses, lost wages, and pain and suffering if you’re injured in an accident caused by an uninsured or underinsured driver. UMPD/UIMPD helps cover damage to your car if it is hit by an uninsured or underinsured driver.
Frequently asked questions about uninsured/underinsured motorist coverage and protection
The following questions provide information about uninsured and underinsured motorist coverage.
How much underinsured motorist coverage do I need?
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The amount of underinsured motorist coverage (UIM) you need depends on your individual circumstances, but a good rule of thumb is to consider carrying at least the same amount of UIM coverage as you have liability insurance. For example, if you have $100,000 in liability insurance, consider having $100,000 in UIM coverage. Some states have minimum UIM requirements. Check with your state insurance department for UIM limit requirements.
What does uninsured motorist insurance cover?
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Uninsured motorist coverage typically pays for damages caused by uninsured drivers up to your policy limit.
Do you really need uninsured motorist coverage?
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Generally speaking, uninsured motorist coverage is a good idea for everyone, even if you have collision and comprehensive coverage. While some states require it, other states make it optional. If you live in a state where it’s optional, there may be a few reasons why you might think you don’t need uninsured motorist (UM) coverage.
- You have health insurance. If you have health insurance, you may think that you don’t need UM coverage to help cover your medical expenses if you’re in an accident with an uninsured driver. However, health insurance typically doesn’t cover all of the costs associated with a car accident, such as lost wages, pain and suffering, and property damage. UM coverage can help to cover these additional costs resulting from an accident with an uninsured driver.
- The uninsured motorist rate is high. The cost of UM coverage can be high, especially if you live in a state with a lot of uninsured drivers. If you’re on a tight budget, you may think that you can’t afford UM coverage. However, without the coverage, you may be stuck paying for your medical bills and vehicle repairs out of your own pocket if you are injured or your vehicle is damaged in an accident with an uninsured driver.
- You think you’re a safe driver. If you’re a safe driver, you may think that you’re less likely to be in an accident with an uninsured driver. However, accidents can happen even to safe drivers and sometimes they may be caused by an uninsured driver. In fact, according to a 2021 study by the Insurance Research Council, one in eight drivers in the United States in 2019 were uninsured.
Is underinsured/uninsured motorist coverage included in “full coverage insurance”?
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The term “full coverage insurance” can vary depending on the insurance company and the state, but it typically includes liability coverage, comprehensive and collision coverage. It can also include UM/UIM if required by your state. However, even in situations where UM/UIM is not required by the state, it is highly recommended for all drivers.
Does uninsured motorist insurance cover hit-and-run accidents?
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Yes, uninsured motorist insurance (UM) can cover hit-and-run accidents. Uninsured motorist insurance is designed to help pay for your medical expenses, lost wages, pain and suffering, and property damage if you’re injured in an accident by an uninsured or underinsured driver. In some states, uninsured motorist coverage will not cover damage to your vehicle if the at-fault driver flees the scene. For those states, collision coverage can help cover the damage resulting from a hit-and-run.
Contact us today to get uninsured motorist insurance
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