Uninsured motorist coverage
When compared to more well-known car insurance coverage types, such as bodily injury liability or property damage liability, uninsured motorist coverage may appear to be an afterthought. In a nutshell, uninsured motorist coverage protects you if you are in an accident and the at-fault driver does not have enough insurance to cover your or your passengers' damages. Given that the Insurance Information Institute (Triple-I) reports that nearly one out of every eight drivers on the road today is uninsured, uninsured motorist coverage may be an important part of your auto insurance policy.
What is uninsured motorist coverage?
Uninsured motorist coverage is a type of car insurance that protects you and your passengers in the event of an accident in which the at-fault party lacks insurance and cannot pay for injuries or damages through their insurance coverage. Without this type of insurance, you may have to pay for your medical bills or vehicle repairs out of pocket if you are involved in an accident that was not your fault, if an uninsured driver hits you as a pedestrian, or if you are the victim of a hit and run.
- Uninsured motorist bodily injury (UMBI): This covers expenses if you or any of your passengers are injured in an accident caused by an uninsured driver. In addition to covering any medical expenses (up to the limits of your policy), some UMBI policies will also cover lost wages if your injuries prevent you from working for an extended period of time.
- Uninsured motorist property damage (UMPD): This is a separate policy that covers damage to your vehicle caused by an uninsured driver. If you only have liability insurance and are hit by a hit-and-run driver, this coverage could be critical. Every state does not have UMPD. If this is the case for you, you should check with your insurance company to see if the damage to your vehicle would be covered if an uninsured motorist hit you and UMPD was unavailable.
Do I need uninsured motorist coverage?
Although uninsured motorist coverage is not required in all states, it can be beneficial. Despite the fact that car insurance is required by law in almost every state, many states have higher rates of uninsured drivers. Mississippi has 29.4% of uninsured drivers, Michigan has 25.5%, Tennessee has 23.7%, New Mexico has 21.8%, Washington has 21.7%, and Florida has 20.4%. In the event of an accident with an uninsured driver, including uninsured motorist coverage on your car insurance policy can provide you with additional financial protection.
Where can I find out if my policy has uninsured motorist coverage?
Examine your current car insurance declarations page to see if you have uninsured motorist coverage. This document summarizes your coverage and policy limits, as well as the amount of your deductible. Remember that car insurance requirements vary depending on where you live. Uninsured motorist coverage is required in many states, but not all states require or even offer uninsured motorist property damage coverage.
If you can't find your declaration page, most auto insurance companies allow you to check your policy coverage online, via a mobile app, or by calling your insurance agent.
Frequently asked questions
What is the difference between uninsured motorist and underinsured motorist coverage?
While these coverage options are frequently grouped together, they refer to two distinct scenarios. Uninsured motorist coverage kicks in if you are in an accident and the at-fault driver does not have an active auto insurance policy. Underinsured motorist coverage, on the other hand, protects you if you are hit by a driver who has car insurance but whose coverage limits are insufficient to cover your damages.
What does “stacking” uninsured motorist coverage mean?
In the event of a covered claim, "stacking" usually refers to increasing the coverage amount paid to you under uninsured or underinsured motorist coverage. If you have more than one vehicle on your policy, stacking may apply in some states. For example, your policy may include two vehicles and $50,000 in UMBI coverage. If you were in an accident with an uninsured driver and your coverage is stacked, your policy would cover your injuries up to $100,000 in UMBI. In this scenario, if your coverage is unstacked, your UMBI coverage limit would be $50,000.
Keep in mind that this coverage only applies to UMBI, not UMPD, and is subject to state laws as well as the rules of your car insurance company. You may also have to pay an additional fee to have this stacking coverage on your policy.