Uninsured Motorist Coverage
Plain English
Uninsured motorist coverage is your own insurance stepping in when the person who hit you doesn't have insurance to pay for what they did. It essentially flips the usual setup, where you'd normally file against their liability coverage, so you're filing against your own policy instead.
Definition
Uninsured motorist coverage pays for a policyholder's injuries, and in some states property damage, when they're hit by a driver who has no liability insurance at all. A closely related coverage, underinsured motorist coverage, applies when the at-fault driver has some insurance but not enough to cover the full cost of the damage. Many states require or default to offering this coverage, since a meaningful share of drivers on the road carry no insurance despite legal requirements to do so.
Why It Matters
Even in states with mandatory auto insurance, a significant percentage of drivers are uninsured or underinsured, so being hit by one is a real risk, not a rare edge case. Without this coverage, a driver hit by an uninsured motorist may have to pay for their own medical bills and repairs out of pocket or pursue the at-fault driver directly, which is often difficult if that person has no assets or insurance to collect from.
Real-World Example
When an uninsured driver ran a stop sign and totaled Jamal's car, causing him a shoulder injury, there was no liability insurance on the other side to pursue. Jamal's own uninsured motorist coverage paid for his medical treatment and the value of his totaled car, something that wouldn't have been possible if he'd declined that coverage when he bought his policy.
Common Misconceptions
- People sometimes assume the at-fault driver's lack of insurance means they simply have no recourse, when their own uninsured motorist coverage is specifically designed to cover exactly this situation.
- It's sometimes assumed uninsured motorist coverage is optional everywhere, when several states require insurers to include it unless the policyholder actively declines it in writing.
- Some think uninsured and underinsured motorist coverage are the same thing, when underinsured coverage specifically addresses a shortfall when the at-fault driver has some, but insufficient, coverage.
- People sometimes believe this coverage only applies to their car, when many policies also extend it to pedestrian or bicycle incidents involving an uninsured driver.
Key Takeaways
- Uninsured motorist coverage pays your claim when the at-fault driver has no insurance at all.
- Underinsured motorist coverage covers the gap when the at-fault driver's insurance isn't enough to cover the full loss.
- A meaningful percentage of drivers nationally are uninsured, making this a real, not rare, risk.
- Several states require this coverage by default unless it's specifically declined in writing.
Frequently Asked Questions
Is uninsured motorist coverage required by law?
It depends on the state. Some states require insurers to offer or include it by default, while others make it optional. Check your specific state's requirements or ask your insurer directly.
What's the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault driver has no insurance at all, while underinsured motorist coverage applies when they have some insurance, but not enough to cover the full cost of your injuries or damage.
Does uninsured motorist coverage affect my premium?
It typically adds a modest amount to your premium, though the exact cost depends on your insurer, your coverage limits, and how common uninsured drivers are in your area.
Does uninsured motorist coverage cover property damage or just injuries?
It depends on the state and policy. Some states include property damage under uninsured motorist coverage, while others limit it to bodily injury only, with property damage handled separately through collision coverage.
Can I use uninsured motorist coverage if I'm a pedestrian hit by a car?
In many cases, yes, if you carry uninsured motorist coverage on your own auto policy and are hit by an uninsured driver while walking or biking, though this depends on your specific policy and state.
State-specific note: Requirements for uninsured and underinsured motorist coverage vary significantly by state. Some states mandate it as part of every auto policy, others require insurers to offer it and let policyholders decline in writing, and a few don't require it at all, so it's worth confirming the rules where you live.
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