Posted Jul 06, 2021 One of every eight drivers are uninsured, which is why Mercury recommends that you check your auto insurance policy for “Uninsured/Underinsured Motorist” coverage. Uninsured motorists do not have auto insurance for the vehicles they are driving, which is against the law in every state except New Hampshire. Underinsured motorists have liability coverage, but their limits are less than the dollar amount it would take to pay for bodily injury that result from an accident. In some states underinsured property damage is also available, so be sure to check with your agent. So what happens if you're in an accident with an uninsured or underinsured negligent driver? Auto insurance
policies specifically ask if you would like uninsured motorist protection. Typically, coverage is segmented into two categories — uninsured motorist bodily injury (seen on the policy as "UMBI," "UM" or "U") and uninsured motorist property damage (displayed on the policy as UMPD). Underinsured motorist bodily injury and property damage is available in some states, so be sure to check with your agent. Pays for reasonable medical expenses,
pain and suffering and loss of earnings for injuries to the driver and passengers that result from the accident. Pays for repairs to your car when the loss is caused by an uninsured motorist. In many cases, uninsured motorist property damage has a limit, so purchasing collision coverage ensures your car is fully repaired or replaced due to serious damage. When you
purchase uninsured motorist property damage in conjunction with collision coverage, your uninsured motorist property damage coverage is referred to as collision deductible waiver and displayed on your policy as "CDW". Collision coverage will pay for the damage to your vehicle (less the amount of your deductible), and when the loss is caused
by an uninsured motorist, your collision deductible waiver coverage will reimburse or waive the deductible payment. If the other driver does have insurance, but with coverage limits less than the damage to your car, you may have to rely on your collision coverage with collision deductible waiver or your uninsured motorist property damage coverage to pay the deductible or remaining balance of vehicle/property damage. It is
important to know that uninsured coverage may not include hit-and-run accidents. For uninsured/underinsured motorist coverage to apply, insurance companies usually need to verify the identity of the driver involved (vehicle license plate) to determine whether they're uninsured or underinsured. Without this information, only collision coverage would
guarantee the policyholder's vehicle would be repaired and the insured would still be responsible to pay the associated deductible. How much auto insurance coverage do you need for uninsured or underinsured encounters? Mercury recommends that uninsured and underinsured coverage match the policy's current bodily injury liability limits and deductible. ¹One in seven drivers is uninsured according to the Insurance Research Council (IRC). You May Also LikeUninsured Motorist Coverage — Often Referred to as UM — Provides Compensation to Policyholders When the At-fault Driver Fails To Carry Liability Insurance What would happen if someone without insurance crashed into your car, or if you were the victim of a hit-and-run? Without uninsured motorist coverage, you would get stuck footing the bill for your vehicle repairs and medical expenses. We at the Home Media reviews team found out exactly what uninsured motorist coverage includes and whether it may be a good idea to add it to your auto insurance policy. We have also rated the best car insurance companies nationwide to help drivers find the right coverage. Get a quote by using our tool above. What Does Uninsured Motorist Insurance Cover?Uninsured motorist coverage helps pay for your medical expenses and repair costs when a driver who doesn’t have insurance causes an auto accident. Also called UM coverage, it kicks in when another party is responsible for damage to your vehicle or health but they don’t have insurance coverage to pay the bill. Types of Uninsured Motorist CoverageThere are two main types of uninsured motorist coverage:
How Much Does Uninsured Motorist Coverage Cost?Compared to other types of coverage, uninsured motorist insurance can be cheap. The cost of uninsured motorist coverage usually fluctuates depending on the percentage of uninsured drivers in a state. On average, uninsured motorist coverage costs much less than standard liability coverage. In some states, it might add as little as $5 or $10 to your monthly premium. Underinsured Motorist CoverageUnderinsured motorist coverage (UIM) pays medical bills for you and your passengers when a driver without enough liability coverage causes an accident. So, if a driver with minimum insurance limits can’t fully pay for injuries they cause to you, UIM coverage will step in to help out. For example, if your medical bills total $13,000 but the at-fault driver only has $10,000 worth of bodily injury liability coverage, your UIM will pay the remaining $3,000. This coverage also has a per-person and per-accident limit. UIM doesn’t usually cover damage to your car. If the other driver’s property damage liability limits can’t cover your car’s damage in total, you can seek compensation from your own collision coverage or take the other driver to court. In some states, UM and UIM are paired together. In others, they are sold separately. Is Uninsured Motorist Coverage Required?A variety of states require some form of underinsured or uninsured motorist coverage. If your state is not listed in the chart below, you are not required to purchase coverage, but you may still want to for your own peace of mind. Uninsured Motorist Coverage: Required States*UM/UIM is only required in New Hampshire and Virginia if drivers choose to buy coverage or can’t meet financial responsibility standards in place of insurance. UM/UIM is required in Rhode Island if you purchase more than the minimum amount of liability coverage. Do I Need Uninsured Motorist Coverage?You will need uninsured motorist coverage if your state requires it. Because uninsured motorist insurance can be very affordable and your liability insurance alone will not protect you against an uninsured motorist on its own, UM is certainly worth considering for most drivers. Below are some pros and cons of UM coverage:
The Truth About Uninsured Motorist CoverageWhile the relatively low cost of uninsured motorist insurance is easier to explain, the risks of not having it are more difficult. Those risks are highlighted below. How Many Drivers Are Uninsured?What are the chances you’d get into a car accident with an uninsured driver? In reality, it’s probably more likely than you would think. According to data from the Insurance Research Council, about 13% of all drivers did not have insurance in 2015. That number varied greatly by state. For example, 26.7% of drivers in Florida didn’t have insurance that year. That means one out of every four drivers was uninsured. At least 20% of drivers in Tennessee, Michigan, New Mexico and Mississippi didn’t have insurance, either. On the other end of the spectrum, only 4.5% of the driving population in Maine was uninsured. How Common Are Hit-and-Runs?Don’t expect all uninsured drivers to stop and apologize after causing an accident. According to one study from AAA, 11.7% of all crashes were hit-and-runs in 2015, and another AAA report showed hit-and-run deaths in the U.S. have increased an average of 7.2% each year since 2009. That report found that New Mexico, Louisiana and Florida had the highest rates of hit-and-runs per capita. Is Uninsured Motorist Coverage Worth It?If you can afford it, our recommendation is to purchase uninsured motorist coverage to be on the safe side. The coverage typically doesn’t cost as much as other types of insurance, and it can save you from winding up in a stressful financial situation. Uninsured Motorist Insurance: ConclusionIn this review, we talked about if uninsured motorist insurance is worth it or required in your state. You can find some of the best companies for uninsured motorist coverage here: Recommended Uninsured Motorist CoverageWhether your state requires uninsured motorist coverage or you’re thinking about adding it as an extra on your policy, the best way to find cheap car insurance is by shopping around. Use the free tool below to compare multiple quotes from top providers, or read on to learn more about two of our highest-rated insurers with uninsured motorist coverage: USAA and State Farm. USAA: Low Rates for MilitaryUSAA is a great choice for automobile insurance if you are a member of the military or have an immediate family member in the armed services. USAA tends to be the cheapest option for those who qualify, plus it has a great reputation for customer service. The company scored 875 out of 1,000 points in the J.D. Power 2022 U.S. Insurance Shopping StudySM — the second-highest score. Additionally, USAA offers auto insurance in all 50 states and can satisfy any requirement for uninsured or underinsured motorist coverage. Read more: USAA insurance review State Farm: Most Popular ProviderAfter a thorough review of State Farm car insurance, we found that the company offers the best prices for students on average. The insurer has a generous student discount of up to 25%. State Farm’s Steer Clear® program is also available for drivers under 25, and successful participants can earn another discount of 20%. State Farm has a strong reputation, with an A++ financial strength rating from AM Best and an A+ rating from the Better Business Bureau (BBB). Like USAA, State Farm can provide any amount of UM or UIM coverage you’d need. Read more: State Farm review Uninsured Motorists Coverage: FAQBelow are some frequently asked questions about uninsured motorist insurance: Our MethodologyBecause consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list. Here are the factors our ratings take into account:
*Data accurate at time of publication. Do I need uninsured motorist coverage if I have collision and comprehensive in Texas?Yes, you need uninsured motorist coverage even if you have collision and comprehensive coverage. Collision insurance will pay to repair your vehicle if you're hit by an uninsured driver, but it won't pay for any of your medical expenses, and comprehensive insurance won't cover your costs at all after a.
What does collision no coverage mean?If you have no collision insurance, your vehicle will have no coverage under your car insurance policy if you cause an accident. When you're at-fault for an accident and do not have collision insurance, you must pay out of pocket to repair or replace your own vehicle.
Do I really need uninsured motorist coverage in Florida?Drivers in Florida are not required to have either underinsured or uninsured motorist coverage. This coverage is simply a way to ensure a driver can best be prepared to handle the financial fallout of an accident in the event the other driver either has no insurance or not enough.
Why do I need uninsured motorist coverage in Florida?Uninsured motorist coverage in Florida covers you if you suffer damages inflicted by a driver who was driving without insurance or who had too little insurance. Generally, the same insurance policies also protect you if the responsible motorist was underinsured rather than completely uninsured.
|
Do you need uninsured motorist coverage if you have collision
Related Posts
Copyright © 2024 pauex Inc.
