Driving on the road can be an unpredictable experience, and often, accidents happen without any prior warning. What if you face an accident caused by someone who is uninsured or underinsured? It can be an unpleasant and frustrating experience.
This is where UM/UIM coverage comes into play. UM/UIM is a type of coverage that protects you financially in situations where the at-fault driver is either uninsured or underinsured.
What is uninsured motorist coverage?
Uninsured motorist coverage is a type of auto insurance that protects you in case you’re involved in an accident with a driver who does not have any liability insurance or whose insurance limits are insufficient to cover the damages. This coverage can help pay for medical expenses, lost wages, and property damage resulting from the accident.
What is underinsured motorist coverage?
Underinsured motorist coverage is a type of auto insurance that provides protection when you’re involved in an accident with a driver who has liability insurance, but their coverage limits are not sufficient to cover the damages and expenses resulting from the accident. This coverage helps pay for property damage and medical expenses, lost wages, and other injury-related costs for you and your passengers.
How do uninsured and underinsured motorist coverage work?
If you’re involved in an accident that isn’t your fault, you would file a claim with the at-fault driver’s car insurance company, have your car repaired, and receive compensation for any lost wages or medical expenses without incurring any out-of-pocket costs.
However, what if the driver responsible for the collision lacks car insurance or has insufficient coverage? Minimum liability insurance requirements may not always provide adequate coverage after an accident.
Uninsured and underinsured motorist coverage kicks in when the at-fault driver has insufficient insurance or doesn’t have any insurance. It helps cover your medical expenses, vehicle repairs, and other damages. Essentially, your insurance company steps in to fulfill the role of the uninsured driver’s insurance company, providing the necessary compensation.
Types of uninsured/underinsured motorist coverage
Uninsured/underinsured motorist coverage can be divided into two main types, each designed to protect you and your passengers in different ways when involved in an accident with an uninsured or underinsured driver:
- Uninsured/Underinsured motorist bodily injury (UMBI/UIMBI): This type of coverage helps pay for medical expenses, lost wages, and other injury-related costs for you and your passengers when the at-fault driver either has no insurance (uninsured) or insufficient coverage (underinsured). It also provides protection if you’re a pedestrian injured by an uninsured or underinsured driver.
- Uninsured/Underinsured motorist property damage (UMPD/UIMPD): This coverage assists in covering the cost of repairs to your vehicle or other damaged property after an accident caused by an uninsured or underinsured driver. In some states, UMPD coverage may also cover damage caused by hit-and-run drivers.
It’s essential to understand the specific terms and limits of your uninsured/underinsured motorist coverage, as these can vary between insurance providers and states. Including this coverage in your auto insurance policy can help ensure that you’re adequately protected from financial hardships in case of an accident with an uninsured or underinsured driver.
Uninsured/Underinsured motorist coverage requirement by state
Uninsured/underinsured motorist coverage requirements vary by state. Some states mandate this coverage, while others make it optional.
What states require uninsured motorist coverage?
These states require drivers to carry uninsured motorist coverage:
- Connecticut
- District of Columbia
- Illinois
- Indiana
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Carolina
- South Dakota
- Vermont
- Virginia
- West Virginia
- Wisconsin
What states require underinsured motorist coverage?
States that require underinsured motorist coverage include:
- District of Columbia
- Maryland
- North Carolina
- South Carolina
- Vermont
- Virginia
- West Virginia
Optional: Arizona, California, Colorado, Connecticut, Hawaii, Illinois, Kentucky, Massachusetts, Michigan, New Jersey, Nevada, Ohio and Utah.
In a nutshell
Uninsured and underinsured motorist coverage is important because it protects you from potential financial hardship. It helps cover medical expenses, vehicle repairs, lost wages, and even pain and suffering resulting from the accident. Without this coverage, you could be left with significant out-of-pocket expenses.
Think of it as an extra layer of security that ensures you receive the full compensation you deserve, even if the other driver’s insurance falls short. It provides peace of mind and reassurance knowing that you’re financially protected in case of an accident caused by an uninsured or underinsured driver.
Frequently asked questions
Does uninsured motorist coverage offer protection for hit-and-run accidents?
Yes, uninsured/underinsured motorist coverage can protect you in hit-and-run accidents. If you’re involved in an accident with an uninsured motorist. This policy can provide compensation for injuries and property damage, subject to the policy terms and conditions.
Do I need uninsured motorist insurance if I have personal injury protection?
In no-fault states like Florida, drivers are required to purchase personal injury protection (PIP) to guarantee that all motorists have access to emergency treatment, irrespective of who is responsible for the accident. However, the coverage limits for personal injury protection are typically quite low.
Do I need uninsured motorist coverage if I have collision coverage?
Collision coverage provides protection for your vehicle in case of an accident, it doesn’t offer the same level of protection as uninsured motorist (UM) coverage. Collision coverage will pay for damages to your vehicle regardless of who is at fault, but you may still be responsible for paying the deductible.
On the other hand, uninsured motorist coverage specifically protects you when you’re involved in an accident with an at-fault driver who has no insurance or inadequate insurance. Uninsured motorist bodily injury (UMBI) coverage helps cover medical expenses, lost wages, and other injury-related costs for you and your passengers, while uninsured motorist property damage (UMPD) coverage assists with repairing your vehicle or other damaged property.
It’s important to consider having both collision and uninsured motorist coverage for comprehensive protection. Ultimately, the decision depends on your individual needs, preferences, and the specific requirements of your state.
