Uninsured / Underinsured motorist coverage: Is it right for you?

You may already know that liability and collision insurance can help cover costs from an accident involving another driver – but what happens if you’re in an accident caused by a driver without insurance? Or what about an accident in which the other driver’s policy limit isn’t enough to cover the damage to your vehicle? In both of these cases, you would still be responsible for the costs (or remainder of the costs for an underinsured driver) to repair any damage to your car. That’s where uninsured motorist coverage and underinsured motorist coverage can help.

Rather than risk paying for expensive repairs or replacement costs, you can simply add uninsured or underinsured motorist insurance to your auto insurance package. Uninsured and underinsured motorist coverages are both designed to provide an extra level of protection against the unknown, but these coverages are also very different.

Uninsured motorist coverage definition

Uninsured motorist coverage may cover damage costs if you are involved in a covered accident with a driver who lacks insurance. There are two different kinds of coverages built into an uninsured motorist coverage policy:

• Uninsured motorist property damage (UMPD) may cover damage to your property, including your car.
• Uninsured motorist bodily injury (UMBI) may cover income losses, medical bills and other associated costs of a covered accident.

Underinsured motorist coverage definition

Underinsured motorist coverage may cover damages related to an accident where the other driver’s insurance policy limits are not enough to cover the damages. For instance, if the other driver’s liability policy limit is $50,000 and you end up with $55,000 worth of damage, underinsured motorist coverage could prevent you from having to pay the $5,000 difference out of pocket if you have policy limits greater than $50,000.

Similar to uninsured motorist coverage, underinsured motorist coverage includes both property damage and bodily injury damage.

Do I need uninsured motorist coverage? Or do I need underinsured motorist coverage?

Uninsured motorist coverage is always a good idea – although auto insurance is required by law, there are still plenty of drivers out there without it. And even if you’re in an accident with a driver who has insurance, the damages incurred may surpass their policy limits. Having one or both of these coverages could be especially important depending on your state’s laws. If you’re interested in protecting yourself with uninsured or underinsured motorist coverage, start your free auto insurance quote today.