What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage is an important aspect of auto insurance that many drivers might overlook until it’s too late. This type of coverage protects you if you’re in an accident with a driver who doesn’t carry any insurance. It can also cover hit-and-run incidents with unidentified drivers. With 14% of drivers in the United States uninsured as of 2022, UM coverage is necessary for financial protection.
How It Protects You and Your Vehicle
UM coverage provides comprehensive protection in several ways:
- Medical expenses: It covers medical costs for you and your passengers.
- Lost wages: If you’re unable to work due to injuries, UM can cover your lost earnings.
- Vehicle damage: Available in some states, uninsured motorist property damage (UMPD) covers repairs to your vehicle.
- Hit-and-run protection: Coverage extends to situations where an unknown at-fault driver flees the scene of an accident.
Understanding Uninsured and Underinsured Motorist Coverage
Here’s a breakdown of the differences between uninsured and underinsured driver coverage:
- UM coverage: Protects you when the at-fault driver has no insurance.
- Underinsured motorist coverage (UIM): This coverage kicks in when the at-fault driver doesn’t have enough insurance to cover all damages. It activates once the liable driver exhausts the limits of their policy.
Types of Coverage Offered
UM coverage is available in different forms:
- Uninsured/underinsured motorist bodily injury (UMBI/UIMBI): This covers medical expenses, lost wages, and pain and suffering for you and your passengers.
- Uninsured/underinsured motorist property damage (UMPD/UIMPD): This pays for damage to your vehicle or other property. Not available in all states, this may be optional coverage.
State Requirements for Uninsured Motorist Coverage
Twenty states and the District of Columbia mandate UM coverage. It’s still strongly recommended even if not required by law in your area.
The Financial Impact of Not Having UM Coverage
Choosing not to carry UM coverage can have serious financial repercussions. You might have to pay medical bills and vehicle repairs out of pocket. Legal action against an uninsured driver can be expensive and may not result in compensation.
Insured drivers collectively pay over $13 billion annually due to accidents involving uninsured motorists, according to estimates.
How To Add Uninsured or Underinsured Coverage to Your Policy
Adding UM or UIM coverage to your auto insurance policy is simple:
- Contact your current insurance provider and ask about adding or increasing your UM coverage.
- Consider matching your UM limits to your liability coverage limits.
- Discuss stacking options if they are available in your state. This allows you to combine UM coverage limits for multiple vehicles.
Covering Medical Expenses: The Critical Role of UM/UIM Coverage
Following an accident, UM coverage can significantly ease the burden of medical expenses. It can cover hospital bills, surgeries, and rehabilitation costs and can help pay for long-term care if injuries are severe. It may also extend to alternative treatments that health insurance may not cover.
Cost of Uninsured Motorist Coverage
UM coverage is generally affordable, with costs ranging from $3 to $6 per month for basic plans. The actual cost can vary based on your location, driving record, and coverage limits. It’s often much less expensive than the potential out-of-pocket payments that can arise from an accident involving an uninsured driver.
Making an Uninsured Motorist Claim
If you need to make an uninsured motorist claim, follow these steps:
- Report the accident to your insurance company immediately.
- Provide all available information about the uninsured driver.
- Your insurance company will investigate the claim.
- You may need to prove that the other driver was at fault and uninsured.
Frequently Asked Questions About Uninsured Motorist Coverage
Is Uninsured Motorist Coverage Required by Law?
Not in all states. However, 20 states and the District of Columbia do mandate UM coverage. In states that don’t require it, it’s often strongly recommended due to the financial protection it provides.
Does Uninsured Motorist Coverage Pay for Property Damage in All States?
UMPD is not available in all states. Even where you can get it, it might be optional, so it’s important to check with your insurance provider.
How Does Uninsured Motorist Coverage Work With Health Insurance?
Health insurance can cover certain medical expenses, but UM coverage can provide additional benefits, such as covering lost wages and pain and suffering, which health insurance generally does not cover.
Can I Use UM Coverage if I’m Hit as a Pedestrian or Cyclist?
Yes, you can file a claim on your UM coverage if you are hit by a motor vehicle with an uninsured or unidentifiable driver while walking or cycling.
What’s the Difference Between Collision Coverage and UMPD?
Collision coverage pays for vehicle damage regardless of fault. UMPD coverage specifically covers damage caused by an uninsured or underinsured driver. UMPD is generally cheaper but has more limitations.
Are You Fully Protected? Act Now
With so many uninsured motorists and the financial risk they pose, reviewing your auto insurance policy is essential. Contact our friendly, knowledgeable agents at American Auto Insurance in Chicago today to add or increase your UM coverage. Financial peace of mind is just a phone call away at 773-286-3500.
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