Uninsured Motorist insurance is a coverage that protects you if you're involved in an accident with someone who does not have Liability insurance or does not have enough Liability insurance to pay for your damages.
Uninsured Motorist insurance options vary widely by state including coverage options, available limits and mandatory requirements. Our licensed agents can help you determine what options are available and what choices make sense for your business.
Depending on the state, Uninsured Motorist insurance may be three separate insurance coverages that are typically categorized together:
- Uninsured Motorist insurance (UM or UMBI)
- Underinsured Motorist insurance (UIM)
- Uninsured Motorist Property Damage insurance (UMPD)
Uninsured motorist insurance (UM)
Also known as Uninsured Motorist Bodily Injury insurance (UMBI), Uninsured Motorist insurance (UM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who is uninsured. UM insurance also protects you and your passengers if struck by a hit-and-run driver.
Covered UM expenses for you and your passengers include:
- Medical bills
- Lost wages
- Pain and suffering
Underinsured motorist insurance (UIM)
Underinsured Motorist insurance (UIM) pays for injuries, such as medical expenses, that result from an accident caused by a driver who has too little insurance to cover all of the injuries. In some states, UIM is part of UM.
Covered UIM expenses for you and your passengers include:
- Medical bills
- Lost wages
- Pain and suffering
Uninsured motorist property damage insurance (UMPD)
Uninsured Motorist Property Damage insurance (UMPD) pays for damage an uninsured driver causes to your vehicle. Uninsured Motorist Property Damage insurance may also protect your vehicle if a hit-and-run driver damages it. Covered property may include personal property as well as your vehicle, depending on the state.
UMPD is not available in all states.
Who needs uninsured motorist insurance?
Uninsured Motorist insurance is an optional insurance coverage in some states, but mandatory in others. Contact us to speak with a licensed representative who can tell you what your state's regulations are and if this coverage is right for you.
Even if your state does not require Uninsured Motorist insurance, we strongly recommend adding it to your commercial auto insurance policy.
Nearly 15 percent of drivers on the road today do not have the legally required Liability insurance. If one of these drivers causes an accident that injures you or damages your property, there will be no insurance company to pay for the damages. You'll be left to foot the bill — unless you have Uninsured Motorist insurance.
Even drivers who do carry insurance sometimes only carry minimum limits, which may not be enough to cover all of the damages in an accident for which they're responsible. If the at-fault driver can't afford to pay out of pocket for the damages that insurance doesn't cover, you'll be left paying for them — unless you have Underinsured Motorist insurance, which covers situations in which the at-fault driver is underinsured. Underinsured Motorist coverage is included in Uninsured Motorist coverage in some states.
Choosing Uninsured Motorist insurance is one more way to protect yourself from paying large amounts out of pocket if someone else is at fault for an accident.
Limits and other details
When you choose Uninsured Motorist insurance, you must select limits, which will determine the maximum amount your insurance company will pay if you use this insurance coverage.
For both Uninsured Motorist insurance (UM or UMBI) and Underinsured Motorist insurance (UIM), the limit you choose describes the maximum payout of this coverage. In most cases, you can choose either a split limit or a combined single limit.
With a split limit, the first number describes the maximum payout per-person, and the second number is the maximum total payout per accident.
For example, if you chose a split limit of $15,000/$30,000:
- $15,000 would be the most your insurance would pay for injuries sustained by a single person in the accident, and
- $30,000 would be the most your insurance would pay for all injuries sustained by all other people in the accident.
For example, if you chose a combined single limit of $30,000:
- $30,000 would be the most your insurance would pay for all injuries sustained in the accident.
For Uninsured Motorist Property Damage insurance (UMPD), the limit is a single number. This number is the maximum total payout for all property damaged in a single accident.
For example, if you chose a limit of $10,000, then $10,000 would be the most your insurance would pay for all property damaged in a single accident.
In some states, such as Virginia, a deductible may apply to Uninsured Motorist Property Damage insurance (UMPD). The deductible is the amount that you agree to pay out of pocket when you have a claim.
Uninsured motorist insurance example
You stop at a red light and are rear-ended. Your car's rear bumper is pretty damaged, and your arm hurts because it slammed against the steering wheel.
As the cops are handling the accident, you find out the other driver doesn't have any insurance.
Fortunately, you purchased Uninsured Motorist insurance (UM or UMBI) with limits of $15,000/$30,000 and Uninsured Motorist Property Damage insurance (UMPD) with a limit of $10,000.
Your Uninsured Motorist insurance (UM or UMBI) will pay the $1,500 medical bill for having your arm x-rayed because the amount of the bill falls within the per-person limit of $15,000 that you selected.
Your Uninsured Motorist Property Damage insurance (UMPD) will pay the $1,000 to replace your rear bumper because the bill is less than your $10,000 limit.
Exceptions and restrictions
Available options, limits and UM coverages vary according to state. Each state has different requirements as to whether UM includes UIM, and whether UMPD is available and whether any of these coverages are mandatory to operate your vehicle.
Contact us to learn what coverage options are available for your business.