What to Know About Uninsured and Underinsured Motorist Coverage
November 21, 2024Every type of insurance has covered losses and things that are not covered unless you add coverage options for them or have adequate limits on your policy to cover them. It’s important to talk to your insurance agent and regularly review your policies to ensure you have the right coverage and the right limits for your needs. When it comes to auto insurance, here is what you need to know about uninsured and underinsured motorist coverage:
What is Uninsured and Underinsured Motorist Coverage?
Uninsured and underinsured motorist coverage protects you and relatives living in your household from losses suffered if an injury is caused by the negligence of a driver who does not have any insurance (uninsured) or not enough insurance (underinsured) to pay for losses and damages.
This coverage is like a safety net for situations where the other driver is at fault and cannot pay for your losses. Although these are considered optional coverages in Pennsylvania, both coverages are mandatory in several states. They are available as separate coverage options or together as a stacked option and they are definitely some coverages to consider when customizing your car insurance policy.
This is particularly true because state minimum limits are often not enough. State limits and requirements for uninsured and underinsured motorist coverage do vary by state, so it’s important to review this coverage with your insurance agent to make sure you have adequate protection.
What Does Uninsured and Underinsured Motorist Coverage Cover?
Although these coverages are often offered together, they cover different things. Specifics will vary by state and by your policy. In general, here’s what uninsured motorist coverage and underinsured motorist coverage covers:
Uninsured Motorist Coverage (UM)
If you are hit by a driver who does not have auto insurance, your uninsured motorist coverage, or UM coverage, protects you and can pay out to cover those losses per your policy. This can include compensation for medical bills for you as well as your passengers in addition to damage to your vehicle. This happens via uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD) coverages respectively.
Does Uninsured Motorist Coverage Cover Hit-and-Run Accidents?
Uninsured motorist coverage can come into play if you are the victim of a hit-and-run accident. In this scenario, you may have the option of filing a claim against your uninsured motorist coverage.
In some states, UMPD will not cover hit-and-run scenarios. If this is the case in your state, collision coverage would need to be included on your auto insurance policy to compensate for the damages to your vehicle caused by a hit-and-run driver.
Underinsured Motorist Coverage (UIM)
If you are hit by a driver who does not have enough coverage on their policy to pay for the damages or injuries they caused, your underinsured motorist coverage can come into play to pay for the difference.
Like uninsured motorist coverage, this can include compensation for medical bills for you and your passengers as well as damage to your vehicle through underinsured motorist bodily injury (UIMBI) and underinsured motorist property damage (UIMPD) coverages.
Although it can be a separate coverage option, underinsured motorist coverage, or UIM coverage, is usually offered in a stacked policy with uninsured motorist coverage. It will vary by state, but some states may require a deductible for the bodily injury portion of UM and UIM coverage while the property damage portion generally doesn’t include or require a deductible.
Do I Really Need Uninsured Motorist Coverage?
Although all insurance companies are required to offer uninsured and underinsured motorist coverage, not all states require drivers to have them. Auto insurance including bodily injury is required for Pennsylvania drivers, but underinsured and underinsured motorist coverage is considered optional.
In states where this coverage is not mandatory, there may be a lot of underinsured drivers on the road. There are also those individuals who choose to drive illegally without any insurance. The Insurance Research Council estimates that approximately 1 in 7 drivers in the US are driving without even basic auto coverage.
Not having uninsured and underinsured motorist coverage leaves you at risk. Even going for the bare minimum on these coverages can leave you at risk. Minimum coverage can only go so far to cover your losses. When it’s gone, it’s gone and you will be left inadequately compensated. The best way to protect yourself and your family members is to carry uninsured and underinsured motorist coverage with adequate limits on your own personal auto policy.
Do I Need Both Uninsured and Underinsured Motorist Coverage?
Some states require both uninsured and underinsured motorist coverage to be on every policy. Some states only require one or the other. In some states, these coverages are considered optional.
Although it may not necessarily be mandatory in your state to have both uninsured and underinsured motorist coverage, it’s a good idea to have both to make sure you are covered for potential losses in case of an accident.
Make Sure You Have the Right Auto Insurance With Ruhl Insurance, a Division of Horst Insurance
Uninsured and underinsured motorist coverage is an affordable and invaluable addition to your auto insurance policy. If you need to add coverage or aren’t sure if your current policy offers adequate coverage, contact Ruhl Insurance, a Division of Horst Insurance, at 717-665-2283 or 800-537-6880. We can look at your policies and help you add this vital coverage if you do not already have it.
Disclaimer: Information and claims presented in this content are meant for informative, illustrative purposes and should not be considered legally binding.