When you are involved in an accident with another driver who is uninsured, or does not have enough insurance coverage, Uninsured and Underinsured Motorist Coverage, also referred as UM/UIM, will cover the injuries sustained. Although this type of insurance is not required by every state, it is highly recommended that you include this in your policy. In order to fully understand the importance of this coverage policy, let's break down the different types of plans under this umbrella.
In the unfortunate event that you and your passengers suffer bodily injuries, or in the worst case scenario, a death occurs caused by a driver who does not have insurance, your medical expenses will be covered under this plan. This can also be said for a hit-and-run incident.
Also known as UMPD, Uninsured Motorist Property Damage simply states that if you are involved in an automobile accident and the insured vehicle suffers damages caused by another driver without insurance, UMPD will pay for the repair cost. If your insurance policy does not include Collision Coverage, Uninsured Motorist Property Damage will only pay up to a certain amount. The limit varies from state to state. Keep in mind that this specific coverage plan is only applicable when involved in an accident caused by an uninsured driver.
This type of insurance coverage is similar to that of the Uninsured Motorist Bodily Injury policy in the sense that it will cover you, your passengers and everyone insured on your policy in the event that injuries, damages, and worst comes to worst, a death occurs, caused by a person who doesn't carry the required insurance. Depending upon your Liability limit, this policy will also make up the difference caused by a driver whose policy does not cover all of your damages.
Uninsured Motorist Property Damage works similar to that of the Uninsured Motorist Property Damage Coverage, except in this case, if you are involved in an automobile accident and the insured vehicle suffers damages caused by another driver without the proper required insurance, UNDPD will pay for the repair cost. If your insurance policy does not include Collision Coverage, Uninsured Motorist Property Damage will only pay up to a certain amount. The limit varies from state to state. Keep in mind that this specific coverage plan is only applicable when involved in an accident caused by an uninsured driver.
Although Liability is required to operate a vehicle, high insurance rates discourages a lot of car owners from actually purchasing the most basic of plans, leaving them accessible to costly debts should an unfortunate accident occur. However, because of the economic times we face, people still would rather take the chance of not having insurance than paying a premium amount. With this said, there are a lot more uninsured drivers on the road than you may believe, so it is very important to think about carrying Uninsured and Underinsured Motorist Coverage. Just picture this, you're coming home from a hectic day at the office, the only thing on your mind is to get home and kick your heels up. In a flash, you are hit by a negligent driver with little or no insurance at all. This is when either your Uninsured or Underinsured Coverage policy would kick in to pay your damages. In addition to the damages you may suffer, this coverage would also pay for any lost wages due to your injury, which is generally paid by the at-fault driver's liability, but if they do not have this coverage or carry too little, you are left to face what could become a severe economic hardship. Uninsured and/or Underinsured Motorist Coverage can without a doubt be a great help to your financial situation.
Without either Uninsured or Underinsured Motorist Coverage, you may have to pursue a civil suit against the driver to recover funds for the repairs and damages caused. Not only can this become a costly matter, but the time you will spend in and out of court can be exhausting and draining to say the least; and in most cases, even if you do win, the at-fault driver may not have the money to pay for any of your medical expenses or damages, which is probably why they didn't have the proper car insurance in the first place.