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What is Uninsured and Underinsured Motorist Coverage?

Published: July 2016

Uninsured and underinsured motorist coverage is part of many car insurance policies — it's required in some states and optional in others. If you're hit by someone with no insurance or without enough liability coverage, this coverage may help protect you.

In this video, Allstate agent Pete Fernandez explains uninsured and underinsured motorist coverage. He talks about a customer who was injured in a serious accident caused by an underinsured driver and how underinsured motorist coverage helped him recover.

Video Transcript

[On-screen] Ask an Agent: What Is Uninsured and Underinsured Motorist Coverage?

[Voiceover] Hi, I'm Pete Fernandez. I'm an Allstate agency owner with offices in the Bucktown and Jefferson Park neighborhoods in Chicago. I deal a lot with uninsured and underinsured motorist coverage.

This type of coverage on your car insurance policy may help protect you and your vehicle if you're hit by one of these types of drivers.

An uninsured driver does not have auto liability insurance to help pay for the damages they cause. An underinsured driver has liability insurance, but the limits may not be enough to cover all of your damages.

Uninsured and underinsured motorist coverage may help pay for:

  • Your resulting medical bills
  • Medical bills for your passengers involved in the crash, or, in some states,
  • Damage to your vehicle

"There was this one customer, a 50-year-old man, who was crossing the street one day when a driver making a right turn didn’t see him. The car clipped him and broke his leg, and he had to have emergency surgery. The driver actually had insurance, but their policy just didn't cover all the damages the accident caused, such as lost wages and medical bills.

A few weeks later, we went over his policy together and I told him, 'You can make a claim under your underinsured motorist coverage, which may help offset what you can't get back from the driver's policy.' He was ecstatic — he wasn't certain whether his auto policy would cover it, since the accident involved him being a pedestrian and didn't happen while he was driving.

In my area, a lot of drivers carry the minimum liability limits required by the state, or drive without insurance. The financial consequences can be serious if one of those drivers hits you. Once you explain how uninsured and underinsured motorist coverage may help in those situations, for most people it's kind of an eye-opener.

[On-screen] Learn more about insurance coverage and concepts: www.allstate.com/askanagent

All images are stock photos used for illustrative purposes only.

Details are specific to this claim. Each claim is different and handled on a case-by-case basis.

Coverage subject to terms, conditions and availability. Policy issuance is subject to qualifications. Allstate Property and Casualty Insurance Company, Allstate Fire and Casualty Insurance Company, Allstate Indemnity Company, Allstate New Jersey Property and Casualty Insurance Company. ©2016 Allstate Insurance Company, Northbrook, IL.

Having A Dedicated Agent Can Make All The Difference.

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Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Allstate Insurance Company, Allstate Indemnity Company, Allstate Fire and Casualty Insurance Company, Allstate Property and Casualty Insurance Company, Northbrook, IL. © 2016 Allstate Insurance Company, Northbrook, IL.
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