Uninsured motorist insurance is a type of auto insurance coverage that pays for damages that result from an accident caused by an uninsured or underinsured driver. In the United States, it is estimated that about one in eight drivers are uninsured, and even more drivers only carry the minimum amount of liability coverage required by law. This can leave innocent victims of accidents with little or no financial recourse.
Who Needs Uninsured Motorist Insurance?
Uninsured motorist insurance is not required by law in every state, but it is highly recommended. If you are involved in an accident with an uninsured or underinsured motorist, you may be faced with significant medical bills, lost wages, and other expenses. Without uninsured motorist insurance, you may have to pay these costs out of your own pocket.
If you are unsure whether uninsured motorist insurance is right for you, consider the following:
Then you may want to consider uninsured motorist insurance if…
Live in a state where it is not required by law
You want to protect yourself from the financial consequences of an accident caused by an uninsured or underinsured motorist.
Have a high-value vehicle or assets
You want to protect your assets in the event of an accident that exceeds the liability limits of the at-fault driver’s insurance.
Have a family to support or dependents
You want to ensure financial stability for your loved ones in the event of an accident that results in significant medical bills or lost wages.
Types of Uninsured Motorist Coverage
There are two types of uninsured motorist coverage:
Uninsured Motorist Bodily Injury Coverage
Uninsured motorist bodily injury coverage pays for medical expenses, lost wages, and other damages resulting from an accident caused by an uninsured or underinsured driver. It may also cover damages resulting from a hit-and-run accident. In some states, uninsured motorist coverage may also include expenses related to pain and suffering.
Uninsured Motorist Property Damage Coverage
Uninsured motorist property damage coverage pays for damage to your vehicle or other property resulting from an accident caused by an uninsured or underinsured driver. It may also cover damages resulting from a hit-and-run accident.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage pays for damages resulting from an accident caused by a driver who does not have any insurance coverage. Underinsured motorist coverage pays for damages resulting from an accident caused by a driver who has insurance coverage, but not enough to cover all of the damages.
Is uninsured motorist coverage required by law?
Uninsured motorist coverage is not required by law in every state, but it is highly recommended. Check with your state’s insurance commissioner or a licensed insurance agent to find out whether it is required in your state.
How much uninsured motorist coverage should I have?
The amount of uninsured motorist coverage you need depends on several factors, including the value of your vehicle, your assets, and your budget. A licensed insurance agent can help you determine the appropriate amount of coverage for your needs.
What should I do if I am involved in an accident with an uninsured driver?
If you are involved in an accident with an uninsured driver, you should contact the police and exchange insurance information with the other driver, if possible. You should also contact your insurance company and notify them of the accident.
Will my insurance rates go up if I use my uninsured motorist coverage?
Your insurance rates may go up if you use your uninsured motorist coverage, but this is not always the case. Check with your insurance company to find out how filing an uninsured motorist claim may affect your rates.
Uninsured motorist insurance is an important type of coverage that can protect you from the financial consequences of an accident caused by an uninsured or underinsured driver. If you are unsure whether uninsured motorist coverage is right for you, talk to a licensed insurance agent who can help you assess your needs and find the right policy.