Underinsured and Uninsured Motorist Coverage

Who does uninsured and underinsured motorist insurance cover?

Uninsured motorist coverage covers you, other insured members in your home, and your passengers for injuries, property damage, and death resulting from accidents with at-fault drivers who don’t have liability insurance. Underinsured motorist coverage pays such costs if a driver’s insurance isn’t sufficient to cover them. Uninsured motorist coverage also protects you in case of an accident with a hit-and-run driver. In some cases you would also be covered should you as a passenger in another car be injured during an accident caused by a driver without adequate coverage. Uninsured and underinsured motorist coverage may be bundled together or offered separately. When underinsured motorist coverage is offered by itself, it only covers property damage.

There are two types of uninsured/underinsured motorist coverage. One covers expenses due to bodily injury, such as medical costs and lost wages. The other provides coverage for property damage, such as the cost of fixing your car. However, this type of coverage for property damage is not available in all states. When it is, it is usually subject to a deductible.

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Why do I need uninsured and underinsured motorist coverage?

Even though most states require drivers to have insurance, there are still many drivers out there without it. Other drivers buy the bare minimum, which may not be sufficient to pay for losses and damages to your property. If you live in a state with no-fault insurance, you may not need this type of coverage. If you don’t, it’s essential, especially in areas with a high percentage of uninsured drivers.

Some insurers combine uninsured and underinsured motorist coverage and others offer them separately, in which case you should buy both. How much of this type of coverage to buy depends on whether the benefits are duplicated by your health insurance, and whether you are already carrying types of coverage that will provide for property damage and medical expenses. Make sure the amount you are covered for is enough to cover medical expenses for you and your family as well as damage to your property.  Uninsured and underinsured motorist coverage is generally affordable, so you may want to buy as much as you can afford. The minimum amount of coverage most insurers recommend is $100,000 per person and $300,000 per accident. Many companies will let you double the amount of your coverage for under $100. 

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