Underinsured or Uninsured Coverage Information

Uninsured Motorist Coverage Information (or Underinsured)

An underinsured or uninsured motorist policy protects you from drivers who are irresponsible. For example, if another driver strikes your car and is not carrying insurance or not enough insurance, you are financially protected. Compared to liability insurance and collision and comprehensive protection, this insurance is quite economical.

Basically, this insurance is taken out when an at-fault driver does not have any or sufficient liability insurance. Therefore, enrolling in a plan can save you from paying for damages or medical expenses that you did not cause.

How an Uninsured and Underinsured Motorist Policy Is Designed to Work

If you happen to get into a collision that was not your fault, you normally file a claim with the other driver’s insurance company to receive compensation to pay for damages, medical costs, and loss of earnings. That means you do not have to pay anything out-of-pocket. You only need to submit the claim.

However, in some instances, the other driver does not have the required insurance coverage or simply is underinsured. When this happens, you need to find some financial relief. According to the Insurance Research Council, the above scenario happens more than people suspect. That is why it is a good idea to consider adding coverage, such as an uninsured and underinsurance motorist plan.

How Underinsured Motorist Insurance Covers You

If the other driver is underinsured, underinsured motorist coverage will kick in to cover the part of the plan that the other driver cannot reimburse. Therefore, you can recoup medical costs or the repair expenses to your car. This coverage will cover an amount up to the limits you select.

Two Types of Coverage

Like auto liability insurance protection, uninsured and underinsured motorist insurance is broken down into two coverage types. These types are as follows:

Uninsured/underinsured motorist bodily injury protection (UMBI)

This insurance covers medical costs, loss of earnings, and injury-related costs for you, your passengers, or any permitted drivers who can drive your car. This plan also covers injuries that result from a hit-and-run crash.

Uninsured/underinsured motorist property damage protection (UMPD)

This insurance covers all the vehicle damages caused by and underinsured or uninsured driver. However, the plan does not cover any damage that is caused in a hit-and-run accident.

State Requirements for Coverage

Because a large number of drivers do not carry enough insurance or any insurance at all, many of the states in the US require that drivers enroll in at least an uninsured motorist plan. You can check your state requirements from the links on our home page.

Stacking the Coverage

If you have more than one vehicle on your uninsured/underinsured motorist policy, your chosen limit is multiplied by the number of covered autos. For instance, if you live in Pennsylvania with UMBI limits of $50,000 per person and $100,000 per accident, and two cars are covered on you plan, stacking would increase the limits to $100,000 per individual and $200,000 for each accident.

Adding the Coverage in a State that Does Not Require Underinsured/Uninsured Motorist Protection

If you live in a state that does not require underinsured or uninsured motorist protection, you can still add it. This option can be a boon to you financially, especially since statistics reveal the large number of drivers who drive without any or sufficient coverage. If you can afford to do so, you may find that adding this coverage can be exceptionally beneficial.

You will particularly benefit from this extra protection if you live in Oklahoma. According to statistics, about 26% of drivers do not carry auto insurance in that state. On the other hand, you may not have to concern yourself with enrollment if you live in Massachusetts. In that state, about 4% of the drivers drive without the required coverage.