What is Uninsured Motorist Insurance?

Excluding Florida, all states require bodily injury liability insurance, and all states—plus Washington D.C.—require property damage liability. This doesn’t mean, however, that every driver on Toms River roads is fully insured. In fact, according to the Insurance Information Institute, 13% of motorists were uninsured in 2017. Irresponsible drivers are just one of the many hazards you may encounter on the roads. This is where uninsured motorist coverage comes in. What is uninsured motorist insurance? It can help protect you if you’re hit by a driver who doesn’t have proper coverage or takes off. 

How Does Uninsured Motorist Insurance Work?

If you get into a car accident but you’re not at fault, your next course of action would be to file a claim with the at-fault driver’s insurance company. Car repairs, medical bills, and lost wages would be covered, so you don’t have to pay out-of-pocket. It’s not so simple if you’re struck by a driver in %%target_city_2% without coverage. 

In this case, the burden of covering those expenses would fall on you. If you’re lucky, the other driver may offer to pay, but if it was a case of a hit-and-run, there’s not much you can do. If you have uninsured motorist insurance, however, you’re protected and don’t have to cover those unforeseen expenses on your own. 

Uninsured vs. Underinsured: What’s the Difference?

As stated above, uninsured motorist coverage protects you from paying for damages caused by an uninsured driver. Underinsured motorist coverage is similar, but kicks in when you’re hit by a driver that has insurance, but not enough to cover the auto repair bills, medical bills, and lost wages incurred. In this case, the at-fault driver’s insurance company will cover those expenses up to the policy limits, and then your underinsured motorist insurance will take care of the difference—up to your policy limit. 

What Does the Uninsured Motorist Coverage Cover? 

Uninsured and underinsured motorist coverages operate like regular liability insurance but step in when the driver isn’t adequately insured. There are two types of underinsured and uninsured motorist coverage: 

• Underinsured/Uninsured Motorist Bodily Injury Coverage (UMBI): Covers lost wages, medical expenses related to your injuries (such as hospital visits and physical therapy), permissive drivers, and your passengers. It also provides coverage for bodily injuries caused by a hit-and-run driver. 
• Underinsured/Uninsured Motorist Property Damage Coverage (UMPD): Covers damages to your vehicle that are caused by an underinsured or uninsured driver. 

Learn More About Insurance Coverage at Automotive Avenues 

Now that you know the answer to the question, “What is uninsured motorist insurance,” it’s time to start thinking about whether it’s right for you! Do you have additional questions about insurance options for your new or pre-owned vehicle in Howell Township? Contact us at Automotive Avenues or visit us in Wall today!