Uninsured and underinsured motorist coverage is a type of insurance that covers damages caused by a driver who is not insured or whose insurance is insufficient to cover the cost of the damage they caused. This type of coverage is optional in some states and mandatory in others. It is important to understand what this coverage means and how it can protect you in the event of an accident.
Uninsured motorist coverage provides protection in case you are involved in an accident with a driver who has no insurance. Imagine, for example, you are struck by an uninsured vehicle running a red light. Uninsured motorist coverage will pay for any damages to your car, as well as medical bills and lost wages if you are injured in an accident caused by an uninsured driver.
Underinsured motorist coverage is similar to uninsured motorist coverage but covers damages caused by a driver who has insurance, but their policy limits are too low to cover the full cost of the damage they caused. For example, if the driver who hit you has a policy limit of $25,000, but the damages from the accident are $50,000, underinsured motorist coverage can cover the difference up to your policy limits.
Having uninsured and underinsured motorist coverage can provide you with peace of mind, knowing that you are protected in case of an accident caused by someone who is uninsured or underinsured. It is important to note that this coverage only applies if the other driver is at fault for the accident.
If you are involved in an accident with an uninsured or underinsured driver, you should contact your insurance company immediately. They will investigate the accident and determine if the other driver is uninsured or underinsured. If they are, your insurance company will provide you with a claim number and assign an adjuster to handle your claim.
The adjuster will work with you to assess the damage to your car and any injuries you sustained. They will also contact the other driver’s insurance company to determine their policy limits. If the other driver is uninsured or underinsured, your insurance company will cover the damages up to the policy limits you chose for your uninsured or underinsured motorist coverage.
We recommend discussing UM/UIM coverage with your agent. During that discussion, also inquire if there is an option to add UM/UIM coverage to your personal umbrella. Depending on your limits, you could obtain an additional 1.5 million or more in coverage for you and your family for very limited cost.