Uninsured Motorist Coverage (UM)
Candlefocus EditorUninsured motorist coverage provides two distinct types of coverage; bodily injury coverage and property damage coverage. Bodily injury coverage helps to cover damages caused by an uninsured or hit-and-run driver, including medical expenses, lost wages, pain and suffering. Property damage coverage will help with repairs to a person’s vehicle caused by an uninsured motorist.
In the event of an accident caused by an uninsured driver, uninsured motorist coverage pays out first. This means that a person’s own insurance company will take care of their losses, up to the limits of their policy, before they need to go after the uninsured driver. All pretty generous, considering they don’t even have to go through the process of engaging a lawyer or other legal assistance.
Though uninsured motorist coverage provides a valuable safeguard against potentially costly damages caused by an uninsured driver; understanding the details and limitations of the coverage are important. Many state laws have “stacking” restrictions in which a person’s insurance company is only liable for a percentage of the damage caused by the uninsured driver. For example, if the driver’s insurance policy had limits of $20,000 per person and $40,000 per accident, an uninsured driver may only receive up to 25% of the coverage, or $5,000 for a single person and $10.000 for multiple person injured in the accident.
Having uninsured motoristcoverage is valuable since it can provide financial protection from the financial burden of an accident caused by an uninsured driver. It is important for a driver to understand the restrictions and coverage details of their policy, as well as their state's law when considering adding uninsured motorist coverage to their policy. Additionally, uninsured motorist coverage may also be available as a separate policy; in order to understand more about their available coverage individuals should speak to their insurance company.