(800) 253-1482What Is Uninsured Motorist Coverage?
Summary: Uninsured and underinsured motorist (UM/UIM) coverage helps drivers restore losses after a hit and run or an accident in which the at-fault driver doesn’t have enough coverage. UM/UIM can come in many different forms. While it’s not required, many can benefit from this affordable protection. Be sure to assess your options before enrolling. Estimated Read Time: 5 mins
Table of Contents:
- What Does Uninsured Motorist Cover?
- Do I Need Uninsured Motorist Coverage?
- Does Uninsured Motorist Cover Hit and Run?
- Is Uninsured Motorist Coverage Required?
- Is Uninsured Motorist Coverage Worth It?
- When Would Uninsured Motorist Coverage Apply?
- Pros and Cons of Uninsured/Underinsured Motorist Coverage
Uninsured motorist coverage is a protection that safeguards drivers who may get in an accident with someone who doesn’t have liability coverage.
Formally known as uninsured/underinsured motorist (UM/UIM) coverage, these policies can also help you restore losses if you’re in an accident and despite having a policy, the driver who caused the wreck doesn’t have enough coverage to restore your loss.
Below, we’re exploring the different scenarios in which UM/UIM can help you along with the different coverage types available. As an affordable coverage option, underinsured motorist coverage is a great consideration for most drivers.
What Does Uninsured Motorist Cover?
Uninsured/underinsured coverage covers property replacement, rental cars, medical bills, and even pain and suffering. Without this protection, your collision coverage handles car repairs, but only if you are at fault.
Furthermore, you may not have protection during a hit-and-run, lack coverage for medical expenses, and your deductible may be higher. If an accident results in long-term care needs or prevents you from working, your health plan might not cover those costs, but UM/UIM will.
Uninsured/underinsured motorist insurance safeguards against injuries and vehicle damage caused by drivers with insufficient or no insurance. Here are the various available coverages and how they protect you:
- Uninsured motorist bodily injury (UMBI): Covers medical bills for you and passengers if hit by an uninsured driver. This coverage usually comes in two limits: per person and per accident.
- Uninsured motorist property damage (UMPD): Pays for your vehicle's damage in collisions with uninsured drivers. In some states, this coverage also pays for hit-and-run accident damages. You may have a deductible of up to $300 for this coverage.
- Underinsured motorist bodily injury (UIMBI): Addresses medical bills for you and passengers when the at-fault driver has insufficient insurance.
- Underinsured motorist property damage (UIMPD): Pays for your vehicle's damage when the at-fault driver lacks adequate insurance. Note that UMPD/UIMPD may have a deductible, while UMBI/UIMBI generally does not.
Do I Need Uninsured Motorist Coverage?
If you’re looking to have peace of mind in the event you are hit by either an uninsured motorist or an underinsured motorist, then UM/UIM coverage is right for you. While it’s not required in Texas, the relatively inexpensive cost makes uninsured motorist insurance an attractive option for many.
Does Uninsured Motorist Cover Hit and Run?
Yes, UM/UIM will cover you in a hit-and-run. Though this varies from state to state, Texas motorists are covered. If you are going to cover car repairs following a hit-and-run, you must have collision coverage or uninsured motorist property damage to avoid paying out of pocket. Uninsured coverage often features a lower deductible compared to collision coverage and may include rental car reimbursement.
Is Uninsured Motorist Coverage Required?
Uninsured motorist coverage isn’t mandatory but that doesn’t mean it’s not an important consideration. Getting into a hit-and-run situation can put many drivers into a deep financial hole to restore the loss. There are repairs and medical expenses that you may incur, all while being without a vehicle. UM/UIM can help affordably safeguard against this risk.
Is Uninsured Motorist Coverage Worth It?
Uninsured and underinsured motorist coverage can be worth the protection if you enjoy peace of mind at an affordable rate. While you will have to pay an additional premium, it’s often affordable and can safeguard against tens of thousands of dollars in the aftermath of a severe accident.
On the other hand, if you don’t drive often, and are looking to save, perhaps you have an older, used car that is safely parked away from others most of the time, UM/UIM may not be right for you. Always evaluate your personal factors with a licensed insurance agent and enroll in a level of protection appropriate for your risk tolerance.
When Would Uninsured Motorist Coverage Apply?
There are several situations in which uninsured underinsured motorist coverage would apply after an accident, including the following:
- A hit-and-run
- You’re in an accident that isn’t your fault but the other driver doesn’t have insurance
- After an accident, the driver who caused the accident does have liability coverage but doesn’t have enough to cover restoring your vehicle
- UM/UIM coverage may also come into play after an accident involving either a hit-and-run or an underinsured motorist where injuries were sustained
Pros and Cons of Uninsured/Underinsured Motorist Coverage
The truth about uninsured motorist coverage is that you can benefit from the extra protection, but each driver has different needs and risk tolerance. You’ll need to weigh all of your options to determine whether or not the coverage is right for you. Here are some pros and cons to consider:
|
Pros: |
Cons: |
|
Protection against costly hit-and-run situations |
Higher premiums |
|
Peace of mind after an accident |
Deductibles |
|
Extra protection from rising medical costs for you and your passengers |
There are still policy limits |
|
Coverage is affordable |
Your health insurance may already cover some expenses |
There are more than 2.6 million vehicles that are not under an auto insurance policy in Texas alone. Furthermore, underinsured motorists continue to pose a problem where after an accident, you may have to pay out of pocket or seek legal recourse. Speaking with an auto insurance agent can help you mitigate risks with uninsured/underinsured motorist coverage.
