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Uninsured Motorist Insurance: Separating Fact from Fiction
Exploring Uninsured/Underinsured Motorist Insurance
Uninsured/underinsured motorist insurance safeguards you in accidents involving drivers lacking insurance or sufficient coverage. It covers hit-and-run incidents and holds the at-fault party liable if they lack or have inadequate liability coverage.
Table of Contents
Uninsured/Underinsured Motorist Insurance Basics
Despite laws mandating liability insurance, many drivers remain uninsured or underinsured, necessitating this coverage.
- Uninsured motorist coverage protects you in accidents where you’re not at fault, and the other driver lacks insurance, including hit-and-run incidents.
- Underinsured motorist coverage applies if the at-fault driver’s insurance is insufficient to cover damages.
Components of Uninsured/Underinsured Motorist Coverage
- Uninsured and Underinsured Motorist Property Damage
- Uninsured and Underinsured Motorist Bodily Injury
Understanding Uninsured Property Damage Insurance Coverage
Similar to collision coverage, it shields your vehicle from physical damage in accidents. Filing a claim typically doesn’t impact premiums as collision claims might. Coverage is triggered by not-at-fault accidents, but practices may vary among insurers.
Understanding Uninsured Bodily Insurance Coverage
Activates when an uninsured or underinsured driver injures you, covering medical bills and related expenses. Unlike property damage coverage, it typically doesn’t entail a deductible.
Stacked Vs. Unstacked Coverage
- Stacked insurance boosts coverage based on the number of insured vehicles.
- Stacking can increase premiums and isn’t universally available.
Determining the Need for Uninsured Motorist Coverage
Some states mandate uninsured motorist coverage, but even where it’s not required, it’s prudent due to the prevalence of uninsured drivers and low liability limits.
FAQs about Uninsured Motorist Coverage
- Is Uninsured Motorist Coverage Mandatory? With 1 in 7 drivers uninsured, considering uninsured coverage is wise, as you could be responsible for damages caused by uninsured drivers.
- Is Uninsured Motorist Coverage Worth It? Your risk tolerance and financial situation dictate whether uninsured coverage is worthwhile, particularly considering potential out-of-pocket expenses.
- How Much Uninsured Motorist Coverage Is Recommended? Experts advise matching liability and uninsured motorist limits, typically set at 100/300 for liability.
- How Much Does Uninsured Motorist Insurance Coverage Cost? Costs vary based on factors like coverage limits, vehicle, age, and location.
Percentage of People Driving Without Insurance by State
| State | Percentage without Insurance |
|---|---|
| Alabama | 15% |
| Alaska | 10% |
| Arizona | 12% |
| Arkansas | 14% |
| California | 8% |
| Colorado | 11% |
| Connecticut | 7% |
| Delaware | 9% |
| Florida | 13% |
| Georgia | 16% |
| Hawaii | 6% |
| Idaho | 9% |
| Illinois | 10% |
| Indiana | 14% |
| Iowa | 8% |
| Kansas | 12% |
| Kentucky | 17% |
| Louisiana | 20% |
| Maine | 5% |
| Maryland | 8% |
| Massachusetts | 6% |
| Michigan | 20% |
| Minnesota | 7% |
| Mississippi | 16% |
| Missouri | 13% |
| Montana | 11% |
| Nebraska | 9% |
| Nevada | 12% |
| New Hampshire | 4% |
| New Jersey | 9% |
| New Mexico | 15% |
| New York | 8% |
| North Carolina | 7% |
| North Dakota | 6% |
| Ohio | 12% |
| Oklahoma | 13% |
| Oregon | 10% |
| Pennsylvania | 8% |
| Rhode Island | 9% |
| South Carolina | 15% |
| South Dakota | 7% |
| Tennessee | 14% |
| Texas | 14% |
| Utah | 9% |
| Vermont | 5% |
| Virginia | 10% |
| Washington | 12% |
| West Virginia | 11% |
| Wisconsin | 9% |
| Wyoming | 10% |
Common Scenarios Uninsured Motorist Coverage
- Hit-and-Run Accidents: You’re involved in a hit-and-run accident where the at-fault driver flees the scene without providing insurance information. Uninsured motorist coverage can help cover your damages in such situations.
- Accidents with Uninsured Drivers: You’re in an accident where the other driver is at fault, but they don’t have any insurance coverage. Uninsured motorist coverage can step in to cover your medical bills, vehicle repairs, and other expenses.
- Underinsured Drivers: The at-fault driver in an accident has insurance, but their coverage limits are insufficient to cover all of your expenses. Underinsured motorist coverage can help bridge the gap between what the other driver’s insurance covers and the total cost of your damages.
- Driving in States with High Rates of Uninsured Drivers: If you live in or frequently travel through states with high rates of uninsured drivers, having uninsured motorist coverage provides essential protection against potential accidents involving these drivers.
- Parking Lot Incidents: Your parked car is hit by another driver who doesn’t have insurance. Uninsured motorist property damage coverage can help cover the cost of repairing your vehicle.
- Rental Car Accidents: You’re involved in an accident while driving a rental car, and the at-fault driver doesn’t have insurance. Uninsured motorist coverage may extend to cover damages to the rental vehicle and any injuries you sustain.
- Pedestrian or Cyclist Accidents: You’re walking or cycling and are hit by a motorist who doesn’t have insurance. Uninsured motorist coverage can help cover your medical expenses and other losses resulting from the accident.
Myths Relating to Uninsured Motorist Insurance
- Myth: “I don’t need uninsured motorist insurance if I have health insurance.”
- Fact: While health insurance can cover medical expenses resulting from accidents, uninsured motorist insurance can also help cover other costs such as vehicle repairs and lost wages, which health insurance may not cover.
- Myth: “Uninsured motorist coverage is only necessary if I’m a bad driver.”
- Fact: Even if you’re a safe driver, you can still be involved in accidents caused by uninsured or underinsured drivers. Uninsured motorist coverage provides financial protection in these situations, regardless of your driving record.
- Myth: “Uninsured motorist coverage is expensive and not worth it.”
- Fact: The cost of uninsured motorist coverage is often relatively low compared to the potential financial burden of being in an accident with an uninsured driver. It provides valuable protection and can save you money in the long run.
- Myth: “My state’s minimum liability coverage includes protection against uninsured drivers.”
- Fact: While some states require uninsured motorist coverage as part of minimum liability insurance, the coverage limits may not be sufficient to fully cover your expenses in the event of an accident. Supplementing with additional uninsured motorist coverage can provide added protection.
- Myth: “Uninsured motorist coverage duplicates coverage I already have.”
- Fact: While other insurance policies may provide some coverage in certain situations, uninsured motorist coverage specifically protects you against accidents involving uninsured or underinsured drivers. It fills gaps in coverage and provides additional financial security.
- Myth: “Uninsured motorist coverage only applies to accidents with other drivers.”
- Fact: Uninsured motorist coverage can also apply to hit-and-run accidents where the at-fault driver cannot be identified or accidents involving pedestrians or cyclists who are struck by uninsured motorists.
- Myth: “I can rely on my savings to cover expenses if I’m in an accident with an uninsured driver.”
- Fact: Depending solely on personal savings to cover accident-related expenses can quickly deplete your finances. Uninsured motorist coverage offers peace of mind knowing that you have financial protection in place if you’re involved in such an accident.