Whether you're running errands, chauffeuring your kids around, or commuting to work, you're probably sharing the road with drivers who have insufficient liability coverage. In fact, one in every seven motorists doesn't have adequate insurance. What would happen if such a driver crashed into you?
Uninsured motorist coverage is car insurance that protects you and your passengers if you're hit by a driver who doesn't have enough (or any) liability coverage. It can cover your medical bills, lost wages, and more if the at-fault driver can't pay for accident damages or injuries. In most states, uninsured motorist coverage is compulsory and highly recommended for all drivers.
Importance of Uninsured Motorist Coverage
Outside driving with care, there's not much you can do to prevent an automobile crash. However, you can do a lot to protect yourself from the aftermath of being hit by an uninsured or underinsured driver.
What is uninsured motorist coverage? In case of an accident and the at-fault driver's liability car insurance is insufficient, they are unlikely to have the personal finances to cover your injuries or property damage. Your only pathway to recovering compensation for the aftermath of the accident is your own uninsured or underinsured motorist coverage.
Some states mandate that all drivers have uninsured motorist coverage, including:
- Connecticut
- District of Columbia
- Kansas
- Minnesota
- New York
Failure to carry uninsured motorist insurance in these states can result in fines, license suspension, or revocation of vehicle registration.
Types of Uninsured Motorist Coverage
Specific options for uninsured motorist insurance vary depending on the insurance company and your state. In general, there are two types of uninsured motorist coverage.
Bodily Injury Coverage
Bodily injury coverage pays medical bills for you and your passengers if an uninsured or underinsured driver causes an accident. It also reimburses pain and suffering, lost wages, and funeral expenses. If you're in states like Texas and Georgia, bodily injury coverage kicks in if you're a victim of a hit-and-run accident.
Property Damage Coverage
When a driver without auto insurance damages your car, property damage insurance pays for repairs up to your vehicle's actual cash value. If your auto insurance lacks full coverage car insurance including property damage and collision insurance, you'll have to pay the repairs out of pocket or file a claim against the at-fault driver in court.
Uninsured vs. Underinsured Motorist Coverage
While uninsured motorist coverage protects you if a person driving uninsured crashes into you, underinsured motorist coverage applies if the driver's coverage limits can't fully cover your losses. The at-fault driver's insurance will cover damage up to their auto insurance policy limits. Then, your underinsured motorist insurance will cover the rest of the amount up to your selected limit.
In some states, you must carry uninsured motorist coverage, either alone or with underinsured motorist coverage. For instance, New Hampshire doesn't require you to have auto insurance. However, if you decide to buy a policy, you must purchase uninsured motorist coverage, which often includes underinsured motorist insurance.
How Uninsured Motorist Coverage Works
Usually, if you get into an accident that isn't your fault, you file a claim with the at-fault driver's insurer to pay for injuries and damages from the accident. However, you might have to pay out of pocket when the driver has no insurance and lacks the personal finances to cover the accident.
Uninsured motorist coverage helps protect your finances if an uninsured driver crashes into you. While the process for filing an uninsured motorist coverage claim varies by state, the general procedure is:
- Report the accident to the police and obtain a report.
- Take photos of the scene, vehicle damage, and visible injuries. If possible, collect witness statements.
- Notify your insurance company of the accident. Your insurer will guide you through submitting a claim under the uninsured motorist coverage.
- Your insurer will then investigate the claim to determine how much compensation you're entitled to. If they approve it, you'll receive a payout.
- If your state allows, you can stack car insurance to combine your coverage limits and increase your claim's compensation.
Choosing the Right Coverage Limits
Your uninsured motorist coverage is all that stands between you and possible financial disaster if you or a household member is seriously injured in an accident caused by an uninsured driver. As such, you should choose the right coverage limit.
Your state has minimum coverage requirements. However, these policy limits are often too low to cover accident losses. You can opt for a higher limit that provides greater financial security.
Evaluating Cost vs. Benefits
How much uninsured motorist coverage do you need? The best policy limit depends on your financial situation and the likelihood of an accident with an uninsured driver occurring. If you choose a higher limit, you'll increase your insurance premiums, but it can save you from major out-of-pocket expenses after an accident.
To that end, you should compare the percentage of uninsured drivers in your state with the potential medical and repair costs you'd face during an accident. Then, consider the amount you're willing to pay to balance affordability with adequate protection.
Handling Accidents With Uninsured Drivers
Getting hit by an uninsured driver can strain your finances and peace of mind, but the right coverage can make all the difference. The truth about uninsured motorist coverage is that even if it's not mandatory, it can cushion you from a hefty financial burden.
Unsure if your policy limit is enough to handle the consequences of an accident with uninsured drivers? Compare auto insurance quotes on EverQuote today to find the best coverage for your needs.