Uninsured Motorist Coverage (UM) is an optional type of auto insurance designed to protect you if you're involved in an accident with a driver who does not have insurance or if you're the victim of a hit-and-run. This blog will be a breakdown of what it typically covers and how it works:
Key Features of Uninsured Motorist Coverage
Bodily Injury Coverage:
Covers medical expenses, lost wages, and pain and suffering for you and your passengers if you're injured in an accident caused by an uninsured driver.
May also cover funeral expenses in the event of a fatal accident.
Property Damage Coverage:
Covers damage to your vehicle and other personal property caused by an uninsured driver.
This aspect of UM coverage is not available in all states and may be separate from bodily injury coverage. You can ask your insurance agent what plans are right for you.
Underinsured Motorist Coverage:
This is a related but separate coverage that kicks in when the at-fault driver has insurance, but their liability limits are too low to cover your damages fully.
Helps cover the gap between the at-fault driver's insurance coverage and your actual expenses.
How it Works
Filing a Claim: If you're in an accident with an uninsured or underinsured driver, you'll file a claim with your own insurance company under your UM or UIM Coverage.
State Requirements: Some states require UM coverage as part of the minimum auto insurance package, while others make it optional.
Limits and Deductibles: Like other insurance policies, UM coverage comes with its own limits and sometimes deductibles, which you can choose based on you needs and budget.
Why It's Important
Financial Protection: UM coverage can save you from paying out of pocket for medical expenses and vehicle repairs if the other driver lacks adequate insurance.
Peace of Mind: Knowing you have coverage in place can provide peace of mind when sharing the road with uninsured or underinsured drivers.
Hit-and-Run Incidents: UM coverage also helps protect you incases where the responsible driver flees the scene and cannot be identified.
At AZ Insurance Team, we highly recommend adding Uninsured Motorist Coverage to your auto insurance policy. Speak to your insurance provider and they will help you determine the right level of coverage for your situation.
Independent insurance brokerage located in Tempe, AZ. We offer auto insurance, homeowners insurance, life insurance, renters insurance, commercial insurance…
Disclaimer: Coverage will vary on state, insurance company, and type of policy.
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