Uninsured Motorist Coverage: Complete Guide

As you may or may not know, uninsured motorist coverage is one of the options offered in most states when buying car insurance. If you're not familiar with UM coverage, it can be easy to assume that it's too much money to pay for something that isn't needed. You may also mistakenly believe that it's not something you need because your state doesn't require UM. The truth is, if you get in an accident with someone who doesn't have any insurance at all, you'll be the one footing the bill for the damages to your car. This is why uninsured motorist coverage may be so valuable.

Even though there are more uninsured motorists than ever before, many people still don't have UM coverage. If you're one of them, it's time to learn why you should be glad you've got UM insurance on your auto insurance quote - and some reasons why you might wish that you had bought it in addition to all those other coverages you've already got.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage, better known as UM insurance, is typically sold in the same amount of coverage as your bodily injury liability limits. If you get hit by someone who has no insurance or not enough insurance to pay for all the damages they cause, your UM policy will step in and cover the difference. This is not liability coverage, and it can't be used to pay for damages caused by you, your passengers, or other people in your car. It also won't cover damage to your vehicle - even if the accident was someone else's fault.

What are the Benefits of Uninsured Motorist Coverage?

There are three big reasons why it's a good idea to have UM coverage on your car insurance policy.

It saves you money

One of the most significant benefits of Uninsured motorist coverage is saving you money on your car insurance quotes. If you're in an accident with an uninsured driver, you won't have to worry about going after the at-fault party for reimbursement. Your car insurance company will handle it for you.

It covers you around the country

A lot of people don't realize that UM insurance is national coverage. In other words, your UM policy will protect you if you're in a wreck with an uninsured driver anywhere in the states. It does not depend on where the accident occurs - what matters is who caused it.

It covers you even if you're not driving

This one is pretty cool: If you have UM coverage on your car insurance, you'll be covered if you're a passenger in an accident caused by an uninsured driver. So even though your friend who borrowed your car to drive to the party will be covered if he gets into an accident while driving, you'll be covered too.

The Difference Between UM and UIM

There's some confusion about UM and UIM coverage. Some people think they're the same, but there are some essential differences between these two types of coverage.

Uninsured Motorist Bodily Injury: It covers the insured person when they're injured by an uninsured motorist, regardless of who is at fault. It covers medical expenses and can include loss of income and funeral expenses.

Underinsured Motorist Bodily Injury: It covers the insured person when they're injured by a driver who has insurance, but not enough to pay for all of the person's expenses. Just like UM coverage, UIM covers medical costs and other related costs.

UM only pays out if the at-fault party doesn't have any liability coverage - or not enough to pay for your expenses. Meanwhile, both underinsured motorist bodily injury and uninsured motorist bodily injury will pay out if the at-fault party has liability coverage, but it's not enough to cover your expenses.

How Much Does Uninsured Motorist Coverage Cost?

Uninsured/underinsured motorist insurance costs about the same as any other type of car insurance coverage, based on your age, driving record, where you live, and the make/model of your car. However, it varies widely from one insurer to another, so it's good to shop around for the best rates.

Why Do People Buy Uninsured Motorist Coverage?

Uninsured motorist coverage is typically purchased in the same amount as your liability coverage. So if you have $100,000 in bodily injury liability coverage on your car insurance policy, you'll also have $100,000 of uninsured/underinsured motorist bodily injury protection. For some, this is simply an additional way to protect themselves if they're in an accident. Others buy it because their state requires that you have UM/UIM coverage or because they've heard horror stories about people who aren't covered when they get into accidents with uninsured drivers.

What are Some Tips for Handling Uninsured Motorist Claims?

One of the most important things to remember when it comes to uninsured motorist claims is that you must cooperate with your car insurance company. This means taking pictures of the damage done by the other driver, giving statements about how and why the accident occurred, etc. Also, always let them know if they need anything else from you - like an official police report or medical records - because they'll need this information to settle your claim.

You should also keep copies of all your documentation - like correspondence with the other party's car insurance company, medical bills, etc. This is useful if you have to take legal action against them later.

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Final Verdict

Uninsured motorist coverage is an extremely important part of auto insurance quote. It is an inexpensive way to protect yourself, your passengers and even your friends or family members who are driving one of your cars. It covers the insured person when they're injured by an uninsured driver, regardless of who was at fault for the accident. It's typically offered in the same amount as liability coverage on a person's car insurance policy, and it's usually a good idea to opt for this type of coverage.