What are the Different Types of Uninsured Motorist Insurance Coverage?

Uninsured motorist insurance coverage is a type of auto insurance that protects you and your passengers in case of an accident caused by a driver who does not have insurance. It can also cover damage to your vehicle caused by an uninsured driver.

Importance Of Uninsured Motorist Insurance Coverage

Uninsured motorist insurance is important because it can protect you from the financial burden of an accident caused by an uninsured driver. According to the Insurance Research Council, there were over 1.7 million hit-and-run crashes in the United States in 2019. Of those crashes, over 20% involved an uninsured driver.

If you are involved in an accident with an uninsured driver, you could be left with medical bills, lost wages, and property damage. Uninsured motorist insurance can help you cover these costs and get you back on your feet after an accident.

Types Of Uninsured Motorist Insurance Coverage

There are three main types of uninsured motorist insurance coverage:

• Bodily injury coverage: This coverage pays for medical expenses and lost wages for injuries sustained in an accident caused by an uninsured motorist. The limits of coverage vary by state and insurance company.
• Property damage coverage: This coverage pays for damage to your vehicle caused by an uninsured motorist. The limits of coverage vary by state and insurance company.
• Underinsured motorist coverage: This coverage pays for medical expenses and lost wages for injuries sustained in an accident caused by an underinsured motorist. An underinsured motorist is a driver who does not have enough insurance to cover the damages they cause. The limits of coverage vary by state and insurance company.

Benefits Of Uninsured Motorist Insurance Coverage

There are many benefits to having uninsured motorist insurance coverage, including:

• Financial protection: Uninsured motorist insurance can protect you from the financial burden of an accident caused by an uninsured driver.
• Peace of mind: Knowing that you are covered in case of an accident can give you peace of mind.
• Potential to recover damages: If you are involved in an accident with an uninsured driver, uninsured motorist insurance can help you recover damages for your injuries and property damage.

Limitations Of Uninsured Motorist Insurance Coverage

There are also some limitations to uninsured motorist insurance coverage, including:

• Coverage limits may not be sufficient: The limits of coverage for uninsured motorist insurance vary by state and insurance company. In some cases, the limits may not be sufficient to cover all of your damages.
• May not cover non-economic damages: Uninsured motorist insurance may not cover non-economic damages, such as pain and suffering.
• May not be available in all states: Uninsured motorist insurance is not available in all states. In some states, it is optional, while in others it is required.

If you are considering purchasing uninsured motorist insurance, it is important to talk to your insurance agent to learn more about the coverage and the limitations. You should also consider your own financial situation and needs when making a decision about whether or not to purchase uninsured motorist insurance.