Insurance Marketplace, Inc Blog
When you get in an accident, your car insurance company will help pay for the damages to your car, but they won't always help pay for the damages to other people or their property. This is where your uninsured motorist coverage comes in. It helps pay for these damages, up to the limits you set.
This can save you a lot of money in the long run because it can help you get back on the road much faster than if you don't have uninsured motorist coverage.
Understanding Uninsured Motorist Coverage
Uninsured motorist coverage provides insurance for underinsured vehicle drivers.
For example, suppose a driver is injured due to an accident involving another vehicle that does not have insurance. In that case, the driver might sue the uninsured or underinsured vehicle driver but might only receive a small settlement from the at-fault driver.
This coverage is not meant to make up for uninsured/underinsured drivers. Uninsured motorist coverage helps you if you have a hit-and-run or an at-fault driver with no insurance, but not much more than that. It is typically a secondary insurance coverage, which means it is used in addition to your main insurance coverage, such as your homeowners or automobile insurance.
It is usually expressed as a percentage of your car's value or a flat dollar amount. Still, it is designed to help you pay for the cost of your hospital bills and lost wages if you are hurt or killed in an accident involving an uninsured/underinsured driver.
How Much Is An Uninsured Motorist Coverage?
Uninsured motorist coverage costs will also vary depending on where you live and the type of coverage you choose. It is not as expensive as you would think in some states, which usually ranges from 5 USD to 10 USD.
Uninsured Motorist Coverage: Two Types
Uninsured motorist bodily injury coverage (UMBI)
Liability coverage provides financial protection against property damage and injuries that you, or other people in your vehicle, cause during an accident. UMBI coverage provides the same protection, but it also covers bodily injury to third parties, such as pedestrians and other drivers, caused by your accident.
UMBI coverage is required in all states except New York, and most states require UMBI coverage and liability coverage. This coverage is a form of "no-fault" insurance. This means it is no longer necessary to prove who was at fault to claim the coverage.
Uninsured motorist property damage coverage (UMPD)
UMPD is a form of "first-party" insurance. This means that it is for you, the person buying it, not a third party. Like UMBI coverage, UMPD applies only to damages you cause to others while driving a car that does not have adequate liability coverage.
Overall, uninsured motorist coverage keeps you protected when you have been in a car accident involving a driver that’s uninsured.
At Insurance Marketplace, Inc., we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (541) 779-0177. You can also request a free quote by CLICKING HERE. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.
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