What Is Uninsured Motorist Coverage & Am I Required to Have It?

Uninsured motorist coverage could pay off.

You pull out as the light turns green and hear a crunching sound. A vehicle running a red light smashes in your fender. When attempting to trade insurance information, you discover that the other person has none. Now what do you do? Uninsured motorist coverage takes care of accident expenses in a case like this. Carrying it on your car insurance policy can offer you many benefits and give you peace of mind when driving.

Definition

Uninsured motorist coverage will pay the cost of car damage and hospital bills if you are struck by a person with no insurance. It can also help with costs if you are in an accident with a person who does not carry enough insurance. This coverage is divided into two different groups: "bodily injury" and "property damage." In some states, this insurance can also cover you in an accident when the other driver flees the scene.

Bodily Injury Coverage

Hospital expenses can be costly in the event of an accident.

Bodily injury coverage pays hospital bills for you and any passengers riding in your vehicle. Medical bills can climb quickly if you are injured in an accident, especially if the other driver has no insurance. Adding this to your policy protects you from incurring large bills and is a standard choice with companies for coverage. It will also pay these expenses if you are hit while walking by an uninsured motorist.

Property Damage Coverage

This aspect of uninsured motorist insurance covers repair costs for your vehicle. This aspect is not offered in every state, but others allow you to add it to your policy. Adding it helps you to pay for expensive body repair, labor costs and parts prices that can add up quickly.

No-Fault Insurance States

Many states require "no-fault" auto insurance. This kind of coverage pays the driver for any expenses from an accident, no matter who caused it. Suing for punitive damages above the costs for medical and vehicle repair is not allowed. Other states have liability coverage, which pays damages and medical expenses to another driver if you cause an accident. If you have this kind of insurance, you may have accident expenses that exceed your policy limits. In this case, uninsured motorist coverage helps to take care of these.

Requirements

Uninsured motorist coverage is required in some states and there are minimum levels of coverage that you must hold. For instance, Missouri requires a minimum bodily injury coverage of $50,000 for each individual involved and $50,000 for every accident that occurs. Check with your local department of motor vehicles in your state or your insurance agent to learn about your state's requirements.

References

• Allstate: Uninsured and Underinsured Motorist Coverage
• Traveler's Insurance: Auto Insurance coverage: Uninsured Motorists Coverage and Underinsured Motorists Coverage
• Rand Institute for Civil Justice: No-Fault Auto Insurance Unrelated to Accident Rates
• Geico: Understanding Your Auto Insurance
• Missouri Department of Motor Vehicles: Insurance Information