Uninsured Motorist Coverage
Auto coverage that pays your medical bills and vehicle damage when you are hit by a driver with no insurance or insufficient insurance.
Uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage protect you when you are injured or your vehicle is damaged by a driver who has no insurance or whose liability limits are inadequate to cover your losses. In the US, estimates suggest that roughly 1 in 8 drivers is uninsured at any given time; in some states the rate exceeds 20%. Without UM/UIM coverage, you could be left holding the bill after a serious accident caused by an uninsured driver.
UM coverage splits into two components: uninsured motorist bodily injury (UMBI), which covers medical expenses, lost wages, and pain and suffering, and uninsured motorist property damage (UMPD), which covers vehicle repair. Many states require UM coverage; some make it optional but require insurers to offer it.
Limits for UM/UIM should mirror your liability limits. If you carry $100,000/$300,000 liability, carry the same UM/UIM limits. The premium difference for matching limits is usually modest, and the protection is substantial.
Real-World Example
When an uninsured driver ran a red light and totaled her car, the policyholder's uninsured motorist coverage paid $28,000 for a replacement vehicle and $15,000 for medical bills.