Uninsured/underinsured motorist insurance is a coverage that protects you if you’re involved in an accident with someone who does not have primary auto liability insurance or does not have enough primary liability insurance to pay for your damages.
Uninsured/underinsured motorist insurance options vary widely by state including coverage options, available limits and mandatory requirements. Our licensed agents can help you determine what options are available and what choices make sense for your business.
Depending on the state, uninsured/underinsured motorist insurance may be three separate insurance coverages that are typically categorized together:
Also known as uninsured motorist bodily injury insurance (UMBI) or uninsured motorist insurance (UM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who is uninsured. UM insurance also protects you and your passengers if struck by a hit-and-run driver.
Covered UM expenses for you and your passengers include:
Underinsured motorist insurance (UIM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who has too little insurance to cover all of the injuries. In some states, UIM is part of UM.
Covered UIM expenses for you and your passengers include:
Uninsured motorist property damage insurance (UMPD) pays for damage an uninsured driver causes to your vehicle. Uninsured motorist property damage insurance may also protect your vehicle if a hit-and-run driver damages it. Covered property may include personal property as well as your vehicle, depending on the state.
UMPD is not available in all states.
Uninsured/underinsured motorist insurance is an optional insurance coverage in some states, but mandatory in others. Contact us to speak with a licensed representative who can tell you what your state’s regulations are and if this coverage is right for you.
Even if your state does not require uninsured/underinsured motorist insurance, we strongly recommend considering it.
Nearly 15 percent of drivers on the road today are uninsured or underinsured. If one of these drivers causes an accident that injures you or damages your property, there will be no insurance company to pay for the damages. You’ll be left to foot the bill – unless you have uninsured/underinsured motorist insurance.
Even drivers who do carry insurance sometimes only carry minimum limits, which may not be enough to cover all of the damages in an accident for which they’re responsible. If the at-fault driver can’t afford to pay out of pocket for the damages that insurance doesn’t cover, you’ll be left paying for them — unless you have underinsured motorist insurance, which covers situations in which the at-fault driver is underinsured. Underinsured motorist insurance is included in some states.
Choosing underinsured motorist insurance is one more way to protect yourself from paying large amounts out of pocket if someone else is at fault for an accident and underinsured.
When you choose uninsured/uninsured motorist insurance, you must select limits, which will determine the maximum amount your insurance company will pay if you use this insurance coverage.
For both uninsured/underinsured motorist insurance (UM or UMBI) and Underinsured Motorist insurance (UIM), the limit you choose describes the maximum payout of this coverage. In most cases, you can choose either a split limit or a combined single limit (CSL).
With a split limit, the first number describes the maximum payout per-person, and the second number is the maximum total payout per accident.
For example, if you chose a split limit of $15,000/$30,000:
For example, if you chose a combined single limit of $30,000:
For example, if you chose a limit of $10,000, then $10,000 would be the most your insurance would pay for all property damaged in a single accident.
You stop at a red light and are rear-ended. Your vehicle’s rear bumper is pretty damaged, and your arm hurts because it slammed against the steering wheel.
As the cops are handling the accident, you find out the other driver doesn’t have any insurance.
Fortunately, you purchased uninsured motorist insurance (UM or UMBI) with limits of $15,000/$30,000 and uninsured motorist property damage insurance (UMPD) with a limit of $10,000.
Your uininsured motorist insurance (UM or UMBI) will pay the $1,500 medical bill for having your arm x-rayed because the amount of the bill falls within the per-person limit of $15,000 that you selected.
Your uninsured motorist property damage insurance (UMPD) will pay the $1,000 to replace your rear bumper because the bill is less than your $10,000 limit.
Available options, limits and UM coverages vary according to state. Each state has different requirements as to whether UM includes UIM, and whether UMPD is available and whether any of these coverages are mandatory to operate your vehicle.
Contact us to learn what coverage options are available for your business.