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Is It Necessary To Have Uninsured/Underinsured Motorist Coverage?

Key Takeaways:

  • An auto insurance policy that covers losses and injuries brought on by an uninsured driver is known as uninsured motorist coverage (UM).
  • Drivers who hit-and-run are likewise categorised as uninsured drivers.
  • In many areas, having UM coverage is a requirement, while in others it can be added as an optional extra to your auto insurance policy.

An auto insurance policy’s uninsured motorist (UM) coverage protects you in the event that you are involved in an accident with a driver who is uninsured. If you have uninsured motorist coverage, it covers medical expenses for you and your passengers as well as, in certain cases, car damage. Uninsured motorist coverage (UM) is an optional endorsement that you can add to your policy in some areas, but it is required in others for auto insurance policies.

How does uninsured motor coverage work?

  • The majority of state laws require drivers to maintain a certain amount of auto liability insurance coverage; these regulations differ from one state to the next.
  • The only states in the US without minimum requirements for auto insurance coverage are New Hampshire and Virginia, where drivers can choose not to carry insurance for a charge.
  • About half of the states plus Washington, D.C. require uninsured motorist coverage on auto insurance policies due to the risk of a potential collision with an uninsured driver.
  • In certain circumstances, such as when you select a liability limit that is higher than the state minimum, several other states also demand it.
  • In the event of an accident where the at-fault driver does not have insurance, your uninsured motorist coverage may pay for the subsequent damages to your car or your medical expenses.
  • Since a hit-and-run driver would likewise be regarded as an uninsured motorist, UM coverage may also assist with the cost of repairs following this kind of collision.
  • However, even if it was a hit-and-run or the other person was at fault, you might not get paid if you don’t have uninsured motorist coverage.

What is covered by uninsured motorist insurance?

Property damage and physical harm make up the two components of UM coverage. Medical costs for you and your passengers are normally covered by UM bodily injury, and it may also cover lost income. The cost of fixing or replacing your car and any other items damaged in the collision is often covered by UM property damage. Read the fine print; the specifics of your coverage are dependent on your insurance policy and state legislation.

What does this mean for you?

After a collision involving a driver who lacks insurance, uninsured motorist coverage pays for your passengers’ and your own medical bills as well as any damage to your vehicle. In some states, it is a must-have, whereas in others, it is an optional coverage. Following hit-and-run incidents, uninsured motorist coverage offers further protection.

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