Even though the drivers in the US are legally required to carry basic liability insurance coverage, there are still drivers who do not carry coverage at all or do not carry enough liability coverage to pay for the damages in full. In order to protect yourself against uninsured and underinsured motorists, make sure to purchase relevant coverage as a part of your Auto Insurance policy.
Uninsured and underinsured motorist coverage is designed to protect you in the event the other driver does not carry coverage or does not have enough coverage to pay for the damages to you, your passengers, vehicle or property. Make sure you are insured and purchase at least a basic Auto Insurance policy. Even if you have to pay monthly premiums, the insurance will prove beneficial in the long run.
Depending on the state and the insurance carrier, different types of uninsured/underinsured motorist policies may be available. However, there are three common types of policies:
- Uninsured Motorist Coverage (UM) – this policy will pay the medical bills for you and your passengers if you are involved in an accident where an uninsured motorist is at fault. Moreover, this coverage will reimburse you and your passengers for lost wages. If you are hit by uninsured driver as a pedestrian, the coverage will protect you as well.
- Uninsured Motorist Property Damage Coverage (UMPD) – the UM policy will protect you against bodily injury, but not against damages to your car or property. For such protection, you will need UMPD coverage, which will protect your vehicle as well as your property, such as your house or your fence.
Underinsured Motorist Coverage (UIM) – in case the driver at fault does not carry enough insurance to pay for the damages, the UIM coverage will pay the difference.