Uninsured/underinsured motorist coverage isn't required in every state. But it's a good idea to use it to protect yourself, your passengers and your vehicle.
Here’s more on this coverage and how it can protect you from financial loss in an accident.
What Is Uninsured Motorist Car Insurance?
If someone is illegally operating a vehicle without insurance, uninsured motorist coverage can help pay for damages caused by the accident. Although everyone must legally purchase auto insurance, many drivers still choose to drive without it.
What Is Underinsured Motorist Insurance?
This coverage protects you if someone hits your vehicle and doesn't have adequate coverage to pay for damages. In some states, UM insurance includes underinsured and uninsured motorist coverage as part of your car insurance.
You may wonder what an underinsured driver means? This varies in different regions. Each state has a specific definition. An underinsured driver has liability auto insurance, but:
- Their liability limits don't cover your bills in an accident the underinsured driver causes
- Their liability limits are less than your underinsured motorist car insurance
In both scenarios, your underinsured motorist coverage pays for the resulting damages.
What Does Uninsured/Underinsured Insurance Cover?
Uninsured/underinsured coverage offers the following two types of protection:
- Bodily Injury Coverage takes care of your medical expenses due to a crash an uninsured driver causes. Depending on your policy, this may cover a family member driving a covered vehicle.
- Property Damage Coverage pays for repairs to your automobile following a crash an uninsured motorist causes. This protection isn't available in every state.
Underinsured motorist insurance has just one type of coverage:
· Bodily Injury Coverage takes care of medical bills if an underinsured driver hits you.
Is Uninsured Motorist Coverage Required?
Talk to your insurance agent for the details of what your state mandates. In all, 21 states and the District of Columbia have made uninsured motorist coverage a requirement.
Drivers do have to carry auto liability insurance as a legal requirement in every state except New Hampshire. However, one in eight drivers sharing the roadways don't have auto insurance, per the Insurance Information Institute (III). That's why so many drivers opt for uninsured motorist coverage.
Is Underinsured Motorist Coverage Required?
Underinsured motorist is optional in most states. Your agent can provide a breakdown of the minimum requirements in the state you live in.
Also Read: 6 Tips to Lower Your Auto Insurance