Uninsured Motorist Coverage

Although the law requires drivers to carry a minimum amount of liability insurance, many motorists still choose to operate their vehicles without insurance coverage.  Nearly one in five drivers on the road in the U.S. is completely uninsured and breaking the law.  Because of the risk these drivers pose, purchasing uninsured motorist coverage can be a wise strategy for protecting you and your family.

Uninsured Motorist Coverage (Bodily Image)

When you’re involved in an accident with an uninsured or under-insured driver, this coverage will cover you, insured members of your household, and your passengers.  Uninsured motorist coverage also extends to scenarios where you’re struck by a hit-and-run driver.  Coverage includes payment of lost wages, medical bills, and pain and suffering compensation. Many states actually require this type of coverage. Generally, uninsured motorist bodily injury insurance will pay for any difference between the at fault driver’s insurance payout (often $0) and the costs of your bodily injuries or those of your passengers, up to the limits of the policy.

Uninsured Motorist Coverage (Property Damage)

This type of coverage is often used as a supplement and/or partial replacement for collision coverage.  In California, for example, if you decline to purchase collision coverage, uninsured motorist property damage coverage pays up to $3,500 for repair work on the insured car.  As you can see, this coverage (maxing out at $3500) is certainly no substitute for proper collision coverage. If you carry uninsured motorist coverage in addition to collision coverage, the uninsured motorist coverage will pay the deductible that your collision coverage requires. Be sure to understand what your uninsured motorist coverage limits are as well.