What does uninsured motorist insurance cover?
The uninsured motorist insurance covers your medical expenses and repair costs if you get into an accident with an uninsured driver.
There are two main components of uninsured motorist coverage:
- Uninsured Motorist Bodily Injury (UMBI): This coverage typically pays for medical expenses, lost wages, and other damages related to bodily injuries suffered by you and your passengers when the at-fault driver is uninsured or underinsured.
- Uninsured Motorist Property Damage (UMPD): This coverage helps pay for damage to your vehicle or other property caused by an uninsured or underinsured driver.
Additionally, you may have underinsured motorist coverage for both bodily injury and property damage.
Do I need uninsured motorist coverage?
In some states, uninsured motorist coverage is mandatory, while in others, it is optional. You can find out the requirements in your state by visiting your state's Department of Insurance website.
Even if UM coverage is not required in your state, it is generally considered a wise investment. According to the Insurance Research Council, one in eight drivers on the road is uninsured. Having uninsured motorist coverage can protect you from significant financial hardship in the event of an accident with one of these drivers.
Which states require uninsured motorist coverage?
The following states in the United States require uninsured motorist coverage
- Connecticut
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nebraska
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Carolina
- South Dakota
- Vermont
- Virginia
- West Virginia
- Wisconsin
What's the difference between uninsured and underinsured motorists?
An driver who carries no insurance or insurance limits beneath the limit required by law in their state of residence is considered to be uninsured. Underinsured, on the other hand, means the driver carries at least the legal minimum but doesn't have enough insurance to cover the damage in full after an at-fault accident.
Uninsured/underinsured motorist coverage is usually sold as one coverage and can be used in either situation. However, in some states you are only required to carry uninsured motorist coverage and not underinsured.
Final thoughts
Uninsured motorist coverage is a type of auto insurance that provides financial protection in case where an uninsured or underinsured driver causes an accident. It helps cover medical expenses and property damage when the at-fault party lacks adequate insurance.
While it's not legally mandated in all states, considering the potential financial risks of accidents involving uninsured drivers, opting for uninsured motorist coverage can offer peace of mind and financial protection.
Sources:
- California Department of Insurance. “Automobile insurance text version.” Accessed February 2024.
- Insurance Information Institute. “Facts + Statistics: Uninsured motorists.” Accessed February 2024.
- Insurance Information Institute. “Protect yourself against uninsured motorists.” Accessed February 2024.
Auto insurance FAQs
How much uninsured motorist coverage do I need?
The amount of uninsured motorist coverage you need depends on factors like your state's minimum requirements and financial situation. You can talk to your insurance agent to know the coverage amount for your needs.
Does uninsured motorist coverage cover hit-and-run accidents?
Uninsured motorist coverage covers hit-and-run accidents. If you're involved in a hit-and-run and the other driver flees the scene or can't be identified, your uninsured motorist coverage can help cover the costs of damages to your vehicle and medical expenses up to the limits of your policy.
