Uninsured and underinsured motorist coverage explained

Name: What is uninsured and underinsured motorist coverage?
Uploaded: 0001-01-01T00:00:00Z
Description: Uninsured and underinsured motorist coverage helps pay for you and your passenger's medical expenses after an accident someone else causes. Specifically, someone who doesn’t have enough (or any) insurance. If you, or your passengers, are hurt in the accident, it can help pay for costly medical bills not covered by an uninsured or underinsured party.

By Allstate

Last updated: January 0001

What is uninsured and underinsured motorist coverage?

An uninsured motorist is someone without auto insurance. Chances are about one in seven drivers in the U.S. is uninsured, according to a 2011 estimate by the Insurance Research Council. Uninsured motorist coverage helps you pay for damages caused by a driver who doesn't have car insurance. If you're hurt or your car is damaged in a crash caused by such a driver, this coverage will help pay for costs, up to the limits in your policy.

But, what does it mean to be underinsured? Let's say you are injured in a car accident in which the other driver is at fault, but only has the state's minimum required bodily injury liability coverage, which isn't nearly enough to cover your medical bills. In some states, as long as your damages exceed the at-fault driver's policy limits, you can collect the difference up to your own policy limit. In that situation, the other driver would be considered underinsured.

However, in other states, if you and the at-fault driver have the same limits, the driver would not be considered underinsured and you may not be able to collect under your own insurance policy even if your damages are more than the other person's policy limits.

It's important to read your policy to understand how your underinsured motorist coverage is applied. This way, you can make sure you have the amount of coverage that is right for you.

The bodily injury portion of uninsured and underinsured motorist coverage may also cover injuries to your passengers or anyone driving your insured auto with your permission at the time of the accident.

In some states, uninsured and underinsured motorist coverage is a single coverage, for which you pay a single premium. In others, they are separate coverages, for which you would pay separate premiums.

Uninsured and underinsured motorist coverage is required in some states, while it's optional in others. Also, it's important to know that uninsured motorist property damage coverage is not available in some states.

Have questions? Contact your local Allstate agent today.