What is uninsured car insurance?
When it comes to buying auto insurance, there are several different types of coverage that make up your policy. Some are legally required by your state and some are not, and it can be confusing to figure out which types of auto insurance you need and can do without.
Uninsured Motorist Insurance, also known as Uninsured/Underinsured Motorist coverage and often shortened to UM/UIM, is required in some states and optional in others, but should be a serious coverage consideration for everyone who buys auto insurance.,
Uninsured/underinsured motorist coverage usually only adds a few dollars to your monthly premium, but the amount of coverage it gives you can be critical in the event of an accident., If another driver causes an accident but does not have insurance to pay for it, Uninsured/Underinsured Motorist’s Insurance (UM/UIM) will cover the costs for bodily injury or property damage you sustain
There are two categories of UM/UIM coverage: Uninsured Motorist Bodily Injury Coverage and Uninsured Motorist Property Damage Coverage.
most states, but a minimum amount is required by law in states like Connecticut, Virginia, and New York
What is uninsured motorist coverage,
uninsured motorist coverage protects you financially if you have an accident with an uninsured motorist. Underinsured motorist coverage, which is sometimes combined and sometimes offered separately, protects you financially when you are in an accident with a motorist whose insurance limits are not high enough to pay for the extent of the damages they caused. Uninsured/underinsured motorist coverage is required in some states, including Connecticut, Maryland, Massachusetts, Minnesota, Nevada, New York, Oregon, and South Carolina, among others.
There are two categories of coverage for uninsured/underinsured motorists: uninsured motorist bodily injury coverage and uninsured motorist property damage coverage.
Uninsured Motorist Bodily Injury (UMBI)
UMBI can cover costs if you are injured in an accident involving an uninsured or underinsured driver. It can also pay for injuries to you or your passengers in the following circumstances:
- When an uninsured driver is found to be at fault
- If you are the victim of a hit and run
- If you are hit by an uninsured driver while riding a bike or walking
This coverage includes medical expenses, rehabilitation or funeral expenses if you or a passenger died in an accident.,
Uninsured Motorist Property Damage (UMPD)
UMPD pays for damages when your car or other property is hit by an uninsured driver. Normally the costs of repairing your car after another driver hits you would be covered by their liability insurance, but if the other driver is uninsured you will need uninsured motorist coverage or you will have to pay for the damage yourself.
Not all states and insurance companies offer both types of coverage. UMBI is the more important of the two because you likely have other types of insurance that will protect you against injury. UMPD is often referred to simply as “uninsured motorist insurance.”
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How uninsured car insurance compares to other types of coverage
uninsured auto coverage may have some overlap with other types of coverage under your auto policy or other insurance policies you may have, such as, In each case, uninsured auto insurance may offer more robust and additional coverage, but it’s good to understand how the covers compare to each other.,y protection
covers medical expenses for you or your passengers after an accident uninsured/underinsured motorist covers costs if you are in an accident caused by a driver with little or no comprehensive car insurance covers damage to your car which to your car after a car accident, no matter who was at fault
uninsured motorist liability coverage, bodily injury protection (PIP)
Bodily Injury Protection (PIP) pays for medical expenses if you are injured by an uninsured driver, but there is another type of auto insurance coverage that can also pay for your medical expenses in this situation: bodily injury (PIP).
PIP is another type of auto insurance coverage that is optional in some states and required in so-called “no-fault” states. PIP coverage pays for your medical expenses (and those of your passengers) if you have an accident, no matter who is at fault., If you have PIP coverage, it will cover you if you are injured by an uninsured driver, but the PIP coverage limits are generally low. Uninsured motorist coverage would pay for your medical and other expenses once your Pep limits are met.
your coverage limit is the maximum amount your insurance company will reimburse you. For example, if you have PEP coverage of $10,000 and your accident results in medical expenses worth $15,000, your insurance will reimburse you for the remaining $10,000 and the remaining 5,000 you will need to pay from your pocket., If you have uninsured motorist liability coverage, you could pay the remaining 5,000.
PIP and UM can also pay lost wages if you are injured in an accident. However, again, PIP limits are generally lower than the coverage offered by uninsured car insurance.
Uninsured motorist liability coverage vs. health insurance
If you are injured in a car accident, your health insurance will pay your related bills, up to your limits, and less your deductible and co-insurance charges. That’s true whether the accident was your fault or not. , so if you have good health care coverage and know that all the regular passengers in your vehicle do too, you may feel comfortable giving up uninsured motorist coverage.
Uninsured motorist’s liability insurance versus disability insurance
If you can’t work due to injury, illness, or disability, your disability insurance can pay you roughly the same amount (usually 80%) of your salary while you recover., Lots of people have short-term disability coverage through their employers and you can also buy long-term disability insurance independently.
If you are seriously injured in a car accident and unable to work, disability insurance may cover some of your lost wages after a waiting period, but UIM may be able to cover you before you start work. validity of disability insurance (usually after 90 days, for short-term disability policies). Both types of insurance cover lost wages due to injury caused by a car accident, but UIM does not require a waiting period.
Property damage coverage for uninsured motorists vs. collision coverage
Property damage for uninsured motorists covers damage to your car after an accident with an uninsured driver; Collision coverage covers damage to your car in an accident, regardless of who is at fault.
Many people choose between uninsured motorist property damage coverage and collision coverage when buying insurance. But if you have collision coverage, you may not need UMPD.,
Collision coverage is more robust than UMPD
for example, if you crash your car into a tree or have an accident where you are at fault, collision coverage would still pay for the damage to your car, while property damage to uninsured motorists would only pay if the uninsured driver is at fault.
Do I need uninsured car insurance?
The main reasons to buy uninsured motorist coverage are that it is required, either by law for your vehicle rental or the finance company, and that it gives you more protection if you are struck by an uninsured motorist than any other component of auto insurance coverage can provide. Here’s who should get uninsured/underinsured motorist coverage:
Drivers who live in states where required by law
some drivers need uninsured motorist coverage because it is required by law. Automobile insurance is required in almost every state, but the types and amounts of insurance required vary., Bodily injury liability coverage is the most commonly required insurance, but nearly half of the states require also coverage for uninsured/underinsured motorists.
The most common amounts of uninsured/underinsured motorist coverage required by mandated states are 25,000 per person and 50,000 per accident, the same as most liability coverage limits. States. But as with all state auto insurance requirement amounts, these minimums may be too low for most people and could leave you open to risk.
Learn your state’s auto insurance requirements, including minimum amounts required for uninsured/underinsured motorist coverage.
Drivers who lease or finance their car
many leasing and financing agencies, including dealerships and banks, require your insurance policy to include coverage for uninsured/underinsured motorists., When you lease or finance a car, there is has another party who has an interest in protecting the vehicle, so your lessor or lender will establish certain requirements for the auto insurance coverage you purchase, typically including a certain amount of uninsured/under-insured motorist coverage. assured.
Drivers who want to be protected against uninsured motorists
Even if uninsured auto insurance is not required in your state, you may decide you want uninsured motorist coverage to reduce your own risk. (Most experts recommend it.,
If you are hit by one of these drivers and suffer injury or damage to your vehicle, you could be the one to pay the price — even if the collision was not your fault. (That’s not to mention drivers who are underinsured and may not have enough coverage to pay for major damages or injuries.)
