Uninsured Motorist (UM) and Underinsured Motorist (UIM) Coverage

What uninsured motorist (UM) and underinsured motorist coverage (UIM)?

Uninsured/underinsured motorist coverage protects you if you are hit by a driver who does not have vehicle insurance or does not have enough coverage to cover the damages or injuries you sustained. Both are required in many places and highly recommended for all drivers. If you are the victim of a hit-and-run accident, you may be able to submit a claim under your uninsured motorist policy.

 

Is uninsured motorist coverage required?

Uninsured motorist coverage, often known as UM coverage, is not required in all states. Even though UM coverage isn't required in your jurisdiction, driving without it puts you at considerable danger. According to the Insurance Information Institute, around 13% of drivers in the United States do not have vehicle insurance. Uninsured drivers account for more than 20% of all drivers in some states.

 

If you are hurt or your car is damaged in an accident caused by an uninsured or underinsured motorist, you may be forced to pay for medical expenses or vehicle repairs out of your own money. Even if you make a claim under your own insurance, you may have a high collision deductible or insufficient medical payments/personal injury protection to cover damage to you or your passengers.

 

What does uninsured/underinsured motorist coverage cover?

Uninsured/underinsured motorist insurance protects your injuries, the injuries of your passengers, and the damage to your car if you are hit by a driver who does not have enough or no auto insurance coverage. Uninsured/underinsured motorist coverage may be distinct, combined, or comprised of up to four coverages depending on your state:

 

If you are struck by a vehicle who does not have insurance…
 

  • Uninsured motorist bodily injury (UMBI) insurance covers medical expenses for both you and your passengers.

  • Uninsured motorist property damage (UMPD) compensates you for vehicle damage.

If you are struck by a driver who does not have proper insurance…
 

  • Underinsured motorist bodily injury (UIMBI) covers your medical expenses as well as the bills of your passengers.

  • Underinsured motorist property damage (UIMPD) compensates you for vehicle damage.

 

Is uninsured motorist coverage available for hit-and-run accidents?

Yes. If a driver crashes your car and leaves, you can make a claim for uninsured motorist coverage under your insurance.

 

Is uninsured motorist bodily injury coverage really necessary if I have health insurance?

Your health insurance coverage may overlap with that of uninsured motorist bodily injury and underinsured motorist bodily injury. Before passing on the coverages in states where uninsured motorist bodily injury and underinsured motorist bodily injury are optional, there are a few factors to consider:

 

  • Will your health insurance cover injuries from a car accident? Medicare and Medicaid may not pay out until all other insurance options have been explored. If you have private health insurance, check with your provider to see if medical expenditures incurred as a consequence of a vehicle accident are covered.
     

  • Is there a deductible on your health insurance? There is often no deductible with uninsured motorist bodily injury and underinsured motorist bodily injury. If you have a high deductible on your health insurance, it may be helpful to carry UMBI and UIMBI.
     

  • Will you be transporting people who do not have their own health insurance? Those passengers will be covered by your uninsured motorist bodily injury and underinsured motorist bodily injury policies.
     

  • Is your health insurance going to cover you for missing wages? Your uninsured motorist bodily injury and underinsured motorist bodily injury, as well as other regions not covered by some health insurance policies, may occasionally do so.

 

How much uninsured motorist protection do I need to protect myself and my family?

You are typically able to select the dollar limitations of your coverage. Consider matching the amount of your liability coverage. In certain states, you have no choice but to select similar limitations.

Your uninsured motorist property damage limit is a completely different (and much simpler) story. You can set a restriction that is proportional to the value of your car. If your automobile is worth $20,000 and you don't have collision coverage, you should factor that amount into your uninsured motorist property damage coverage.