If you do not have Uninsured Motorist Coverage, you absolutely need it. Why? If someone hits you and does not have coverage or you are a victim to a hit and run accident, your Uninsured Motorist Coverage will take care of your property damage and personal injuries. This article explains some of the coverages.
Uninsured Motorist Coverage
The Insurance Research Council (IRC) estimates that 1 driver out of every 7 drivers in the United States is currently uninsured. This is especially startling considering that an accident with an uninsured or underinsured driver can result in significant costs that aren't covered by a basic liability insurance policy.
To protect law-abiding drivers, many states are now requiring uninsured motorist coverage in their car insurance policies to help with costs associated with injuries after being involved in a car accident with an uninsured driver.
Additionally, drivers may have the option to purchase uninsured motorist property damage that covers damages to your vehicle and/or other property caused by an uninsured driver in an accident.
In the event of an auto accident, uninsured motorist (UM) coverage – also called uninsured motorist bodily injury (UMBI) insurance – will cover you and your passengers for:
- Medical expenses.
- Pain and suffering.
- Lost wages.
Under this car insurance policy, you and your passengers will also be covered if you are the victim of a hit-and-run accident.
NOTE: In some cases, a driver might have some liability insurance but not enough to cover your injuries and/or damages. Underinsured motorist coverage can be used to offset the costs. Visit our Underinsured Motorist Coverage page to learn more.
If you decide to purchase UM coverage, you'll need to select the limits that are right for you. In many states, the minimum car insurance coverage amounts are set for you; however, you can always choose higher limits (and it may be wise to do so).
When you consider your desired coverage amounts for uninsured and underinsured motorist bodily injury coverage, make sure you understand how these limits work.
In most cases, your UM coverage will come in a split limit, meaning your insurance coverage will differ if there is one person injured versus if there are multiple peopleinjured. For example, a split limit might be:
- $15,000 for bodily injury or death, per person.
- $30,000 for total bodily injury or death, per accident.
Combined Single Limits
You may instead be able to purchase a combined single limit policy, which is one amount that your insurance company will pay out for all bodily injury in an accident (e.g., $30,000 for all injuries).