Uninsured and underinsured motorist coverage are types of car insurance that protects you if an accident is caused by a driver who either does not have enough insurance to cover damages, or is uninsured. This insurance can help protect you from financial hardships in those instances.
As a licensed insurance broker, my clients often ask me about uninsured and underinsured motorist coverage. In this article, we’ll discuss what these coverages are, how they work, and how you can choose the right coverage for your needs.
Table of contents
What Is Uninsured Motorist Coverage?
As an insurance professional, my clients often ask me what uninsured motorist coverage is. Uninsured motorist coverage is a type of car insurance that protects you in the event of an accident caused by a driver who doesn’t have insurance.
| Type | Uninsured Motorist Coverage |
|---|---|
| Definition | Insurance coverage that pays for damages if you are involved in an accident with a driver who does not have any insurance |
| Purpose | Protects you in the event of an accident with an uninsured driver |
| Types Of Damages Covered | Property damage, medical bills, lost wages, and other expenses resulting from the accident |
| How It Works | If you are involved in an accident with an uninsured driver, and the driver does not have insurance to cover the damages, your uninsured motorist coverage will kick in to cover the costs. |
| May Be Required By Law | In some states, uninsured motorist coverage is required by law |
| May Be Included In Policy | Uninsured motorist coverage may be included in your auto insurance policy by default, or you may have the option to add it as an additional coverage. |
If you are in an accident with an uninsured driver and you have uninsured motorist coverage, your insurance will pay for any damages or injuries that you incur as a result of the accident.
There Are Two Types Of Uninsured Motorist Coverage:
Uninsured Motorist Property Damage coverage pays for damages to your vehicle if it is hit by an uninsured driver.
Uninsured Motorist Bodily Injury coverage pays for medical expenses and lost wages if you are injured in an accident caused by an uninsured driver.
It’s important to note that uninsured motorist coverage only applies if the other driver is at fault for the accident. If you are found to be at fault, your uninsured motorist coverage will not pay for your damages or injuries.
Pro Tip: Insured motorist coverage can provide peace of mind and financial protection in an accident with an uninsured driver. It’s a good idea to consider adding this coverage to your car insurance policy, especially if you live in an area with many uninsured drivers.
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What Is Underinsured Motorist Coverage?
My clients also often ask about underinsured motorist coverage. Underinsured motorist coverage is a type of car insurance that protects you in the event of an accident caused by a driver who doesn’t have enough insurance to cover the damages.
| Type | Underinsured Motorist Coverage |
|---|---|
| Definition | Insurance coverage that pays for damages if you are involved in an accident with a driver who does not have enough insurance to cover the damages |
| Purpose | Protects you from being under-compensated in the event of an accident with an underinsured driver |
| Types Of Damages Covered | Property damage, medical bills, lost wages, and other expenses resulting from the accident |
| How It Works | If you are involved in an accident with an underinsured driver and the driver’s insurance does not cover the total cost of the damages, your underinsured motorist coverage will kick in to cover the remaining costs. |
| May Be Required By Law | In some states, underinsured motorist coverage is required by law |
| May Be Included In Policy | Underinsured motorist coverage may be included in your auto insurance policy by default, or you may have the option to add it as additional coverage. |
If you are in an accident with an underinsured driver and have underinsured motorist coverage, your insurance will pay for any damages or injuries not covered by the other driver’s insurance.
Underinsured motorist property damage coverage pays for damages to your vehicle if it is hit by an underinsured driver. Underinsured motorist bodily injury coverage pays for medical expenses and lost wages if you are injured in an accident caused by an underinsured driver.
Pro Tip: It’s important to note that underinsured motorist coverage only applies if the other driver is at fault for the accident and their insurance is not enough to cover the damages.
If you are found to be at fault, your underinsured motorist coverage will not pay for your damages or injuries.
How To Choose The Right Coverage For You?
When deciding if you need uninsured or underinsured motorist coverage, there are factors you should consider to make sure you make the best choice for your needs. Here are some tips that I recommend as an insurance professional when choosing the coverage that is right for you:
- Determine Your Coverage Limits: It’s generally a good idea to choose coverage limits that are high enough to protect your assets, but not so high that you can’t afford the premiums.
- Consider Your State’s Minimum Requirements: Check your state’s minimum requirements and consider whether or not you need to increase your coverage to meet those requirements.
- Shop Around: Make sure to compare coverage limits, deductibles, and any discounts that may be available.
- Read Your Policy Carefully: Before purchasing a policy, read the fine print and understand what is and isn’t covered.
By considering these factors, you can find the right uninsured and underinsured motorist coverage for your needs and protect yourself and your loved ones in the event of an accident.
Conclusion
Uninsured and underinsured motorist coverage are essential types of car insurance that can protect you should you get in an accident with an underinsured or uninsured driver.
These coverages can help protect you and cover financial expenses that other driver cannot. Shopping around and comparing multiple quotes is important to ensure you get the best pricing possible.
