Accidents happen and sometimes we aren’t the party at fault. So, what happens when the driver who hit you doesn’t have liability coverage? Perhaps they don’t have any coverage at all, or maybe the coverage they do have isn’t sufficient enough to cover the costs of the damage.
The good news is, there is something you can do to preemptively protect yourself should you ever wind up in an unfortunate situation like this. There are two types of coverages you can add to your policy to protect yourself from an unprepared driver:
- Underinsured motorist coverage
- Uninsured motorist coverage
While these two types of coverages are similar in theory, one is slightly different than the other.
Underinsured Coverage
Underinsured motorist coverage is an add-on feature to your car insurance policy. It’s there to protect you in the event that the driver who hit you doesn’t have sufficient insurance to cover the damage caused to your vehicle.
In a perfect world, when a car accident happens, the driver who is at fault would have liability insurance. Their liability insurance is responsible for covering the costs of repairs for your vehicle. If the driver who is at fault has insurance, but their policy has a limit that is less than the cost of repairs, the harmed driver’s underinsured motorist coverage would foot the rest of the bill.
There are two types of underinsured motorist coverage: underinsured motorist bodily injury (UIMBI) and underinsured motorist property damage (UIMPD).
UIMBI will cover the remaining balance of any medical bills, pain and suffering, funeral expenses, or lost wages if you are unable to work following the accident if the at-fault driver was minimally insured.
UIMPD will cover the remaining balance of any property damage or car damage with an at-fault driver who is minimally insured.
There may be a deductible for this type of insurance. Ask your provider for more details.
Here are the benefits of adding underinsured motorist coverage to your insurance policy:
- Underinsured motorist coverage can protect you and your vehicle if you are ever hit by a driver without adequate insurance.
- This type of insurance isn’t that expensive to tack on to your normal car insurance policy.
- Some coverage will also take care of bodily injuries or medical visits, depending on the type you get.
There are a few states who necessitate that all drivers have this type of insurance on their plan, but most states do not require it. If you have the means to add this on to your insurance policy, speak with an agent and ask about rates.
Uninsured Motorist Coverage
What if the driver who hits you has no liability coverage at all? Even in this circumstance, there is still hope. Luckily, we can take matters into our own hands by being prepared for the aftermath of getting hit by an irresponsible driver. Uninsured motorist coverage exists to protect drivers and their vehicles from at-fault drivers who don’t have liability insurance.
If you are ever hit by a driver without insurance, uninsured motorist coverage will pay for the cost of damages to your vehicle so that you don’t have to. Even if the at-fault driver flees the scene and leaves you hanging after the accident, uninsured motorist coverage will still protect you.
There are two types of uninsured motorist insurance: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI will cover the cost of any medical bills, pain and suffering, funeral expenses and lost wages if you are unable to work due to the accident. It could also cover you if you are a pedestrian or bicyclist who gets hit by an uninsured driver.
UMPD will cover the repairs for any damage that was done to your vehicle or property after being hit by an uninsured driver.
Keep in mind that there may be a deductible for this type of coverage. Make sure to ask your insurance provider for more details.
Here are some of the benefits of having uninsured motorist coverage:
- If you ever find yourself in an accident with an at-fault driver who is uninsured, your uninsured motorist coverage will kick in to protect you and/or your vehicle.
- Compared to other types of insurance, uninsured motorist coverage is a fairly inexpensive add-on.
- It can be used even if the driver who hit you leaves the scene of the accident before you were able to collect their insurance information.
Some states have made uninsured motorist coverage and underinsured motorist coverage mandatory, but most states do not require this as part of your standard insurance policy.
States And Uninsured Motorist Insurance
Here are the states that require uninsured motorist coverage:
- Oregon
- North Dakota
- South Dakota
- Nebraska
- Kansas
- Minnesota
- Wisconsin
- Illinois
- Missouri
- Maine
- New Hampshire
- Vermont
- New York
- Massachusetts
- Connecticut
- West Virginia
- Virginia
- Maryland
- North Carolina
- South Carolina
While these states require that all drivers have uninsured motorist coverage, it is optional in all other states if available.
It’s never a bad idea to have a backup plan. If uninsured or underinsured motorist coverage fits into your budget, ask your insurance company how you can go about adding it on to your insurance policy.