Auto Insurance Uninsured Motorist Definition


If your state requires uninsured motorist coverage, you`ll need to purchase at least the state minimum when you receive auto insurance quotes. The minimum is usually UM coverage in amounts that correspond to the amounts of your liability coverage. For example, if you have liability limits of $100,000 for a person`s injuries and $300,000 for injuries in an accident, you would buy UM 100/300 coverage. Yes, some auto insurers use your uninsured motorist coverage to pay for injury or damage after a driver`s escape accident. Let`s say you have coverage for two cars in the same auto insurance, both with $100,000 in UM bodily injury coverage. If you get injured when an uninsured driver causes an accident with one of your cars, you can “stack” the coverage and claim up to $200,000 in benefits. If you can stack up insurance, there are usually two ways to do it: state laws typically require motorists to have a certain level of auto insurance, and these requirements vary from state to state. Nineteen states plus Washington D.C. require policies to include coverage for uninsured motorists (UM). New Hampshire and Virginia are the only U.S. states that do not require a minimum level of auto insurance coverage.

If you don`t have uninsured motorist coverage and you`re hit by someone without insurance, you can sue the guilty driver in court. But you`ll likely need to hire a lawyer and the legal process could take a long time. » MORE: Car Insurance Quotes: What you need to know UMPD should be offered if you do not have collision insurance (you can unsubscribe in writing); $15,000 Do you have any other insurance to cover injuries caused by a car accident? The main function of uninsured motorist coverage is to pay medical bills after a car accident with an uninsured driver. If you have good health insurance, you may not feel like you need UM coverage. But if you have a high-deductible health plan and pay a large amount of money for hospitalization, UM could be attractive. Here are some other things to keep in mind when it comes to stack insurance: If you have a car accident and the guilty driver doesn`t have or doesn`t have enough liability insurance, contact your auto insurance company and file a claim under your UM coverage (assuming you have coverage). Read on to find out exactly what coverage for uninsured motorists includes and whether it`s a good idea to add it to your auto insurance policy. The Home Media Reviews team evaluated the best auto insurance companies nationwide to help drivers find the right coverage. You can easily compare offers for uninsured motorists from major providers using the free tool below.

While it`s unlikely to have an accident with an uninsured motorist, it`s still a possibility. Would you be able to cover your own medical bills and repair costs if an uninsured driver caused an accident? Otherwise, it`s a good idea to have this cover. Compare car insurance quotes to find a good price. About one in eight drivers don`t have auto insurance, according to a 2021 report from the Insurance Research Council. And what if you are injured in a car accident caused by a driver who does not have liability insurance? You can be stuck with high expenses like medical bills and health insurance deductibles. Uninsured car coverage pays not only for your medical expenses, but also for lost wages, pain and suffering, and funeral expenses. It`s easier to let your insurance company take care of your medical bills than to try your luck in court. Since liability insurance is designed to protect your assets in case you cause a wreck, you want the same financial security if someone else caused the wreck. For this reason, it`s standard to buy uninsured motorist coverage at least the same amounts as your liability limits. The more assets you have in your name and the more liability insurance you buy, the higher your cost of covering uninsured motorists is likely to be. If your state doesn`t require it, you probably don`t need a UMPD if you already have collision insurance.

That`s because collision insurance pays for damage to your car, no matter who caused the accident. UMPD only pays in certain cases, but it may come with a lower deductible than you chose for a collision deductible. Fortunately, there are types of auto insurance that mitigate this problem: Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage pay medical bills and other expenses for you and your passengers if you`re involved in a car accident caused by: You may need to purchase uninsured motorist coverage depending on where you live – but even if you`re not, it is worth considering. This type of insurance costs relatively little and could potentially save you tens of thousands of dollars if hit by an uninsured driver. It`s good to understand how uninsured motorist claims typically work so you won`t be surprised if you get less than you expect. The amount of underinsured car coverage you can claim is usually reduced by the amount of money you receive from another driver`s liability insurance. Here`s an example: Underinsured motorists (UIM) pay medical bills for you and your passengers if a driver without adequate liability insurance causes an accident. So if a driver with minimum insurance limits can`t pay fully for the injuries they cause you, UIM coverage will step in to help. For example, if your medical bills total $13,000, but the guilty driver only has liability insurance worth $10,000, your UIM will pay the remaining $3,000. This coverage also has a limit per person per accident. Compared to other types of coverage, uninsured motorist insurance can be cheap. The cost of coverage by uninsured motorists typically fluctuates based on the percentage of uninsured drivers in a state.

On average, coverage for uninsured motorists costs much less than standard liability insurance. In some states, it can add as little as $5 or $10 to your monthly premium. A variety of states require some form of coverage for uninsured or uninsured motorists. .