Driving can be risky — especially because 1 in 8 drivers is uninsured. If you get into an accident with an uninsured driver, you might wonder who foots the medical bills and car repair costs. Luckily, uninsured/underinsured motorist insurance can help. Show
What is uninsured motorist coverage?When you're in an accident caused by someone who doesn't have insurance, uninsured motorist coverage pays for your financial losses. There are two types of UIM:
The following is covered by uninsured/underinsured motorist insurance:
UIM limits are usually written in three parts; for example: $25,000/$50,000/$25,000. The first number represents the amount an insurer will pay for each person if an uninsured driver hits your car. The insurer pays up to $50,000 for all injuries associated with the accident (the second number) and up to $25,000 for any property damage (the third number). Let's say your medical bills total $20,000 following a car accident. Usually, you would file a claim against the at-fault driver's bodily injury liability coverage. But because the other driver is uninsured, you would tap into your uninsured motorist insurance. So long as your limits are at least $20,000, you should be able to recoup all losses. You can also look into a collision deductible waiver, which will cover your deductible if your vehicle is damaged in an accident and the driver at fault is uninsured. Where is uninsured/underinsured motorist coverage required?There are 20 states that require UIM. The bodily injury version of the coverage is typically mandatory. In a few states, you are required to carry UIM property damage, while in some states the coverage is not even offered. The table below lists states that make UIM mandatory:
Show All Rows Limits for UIM generally follow the state's minimum limits for bodily injury and property damage liability coverage. We recommend drivers get more than the state minimum in many cases. Find Cheap Auto Insurance Quotes in Your Area No spam. No hassle. No hidden costs. How much does uninsured/underinsured motorist insurance cost?UIM is much cheaper than standard bodily injury and property damage insurance. Based on sample quotes for a 34-year-old married man, premiums for a $25,000/$50,000 policy range from $33–$76 per year. For a policy with four times the coverage — limits of $100,000/$300,000 — the premium only cost between $86–$134 per year. UIM is significantly cheaper than the price of liability coverage, but prices fluctuate between states. That's because some states have a higher percentage of uninsured drivers, which means there's a greater chance you'll use UIM coverage. The price of a policy depends largely on the number of uninsured drivers in your state. For example, rates in Massachusetts are usually cheap because Massachusetts has the lowest percentage of uninsured drivers. A state like Oklahoma, on the other hand, is more costly because it has the highest percentage of uninsured drivers. The prices below reflect quotes from Geico.
*Presented uninsured and underinsured motorist insurance as one premium, so divided in two to show price for each Is uninsured motorist insurance worth it?The average hospital bill following a car accident is around $60,000. In most cases, UIM coverage is worth carrying — it won't cost much to get a policy that covers this type of bill. If your limit is $25,000, then a car accident with an uninsured driver pays for less than half of the costs, leaving you on the hook for the rest. When setting your insurance limits, you should consider your net worth. That's the value of all of your assets, such as home equity, after subtracting your liabilities, such as student loan debt. So if your net worth is $50,000, then your UIM limits should be at least $50,000. Luckily, there's not much of a price difference between low and high coverage limits. You should only consider not carrying UIM insurance if you live in a no-fault state like Florida or Michigan, where personal injury protection (PIP) is mandatory. PIP pays for your injuries, regardless if the other driver is insured. Additionally, if you have comprehensive and collision insurance, any car damage will be covered, regardless if the other driver is insured. Both coverages, however, will make your auto insurance policy more expensive.
If the right side of the table does not match your current auto policy, you should strongly consider getting UIM. For many people, however, getting PIP and collision and comprehensive insurance on the same policy may be too expensive. As we discuss in the next section, UIM may be the more viable and affordable option. What is stacking?Stacking allows you to combine uninsured/underinsured coverage limits, which increases your protection. Depending on state law, you may be able to stack coverage on multiple vehicles within the same policy, or stack coverage across multiple policies. Let's say your car insurance policy covers two cars. You have uninsured motorist bodily injury coverage limits of $20,000 on each car. Stacking your coverage within that policy increases your limits to $40,000 per accident. So if you're injured in a car accident with someone who's not insured, your insurance will help pay medical expenses up to $40,000. In some states, you can stack UM/UIM coverage limits across multiple car insurance policies. Let's say you have a car insurance policy for your own car, with a UMBI limit of $25,000. Your aunt lives with you and lists your name on her auto insurance policy. Her coverage limit is $35,000. Stacking coverage across both policies would increase your UMBI coverage limit to $60,000. If you're hit by an uninsured driver, your insurer would help cover medical bills up to $60,000. And in some states, you may file a claim against multiple policies if you're injured as a passenger or pedestrian. So if you're a passenger in a car that's hit by an uninsured driver, for example, you're covered under two policies: your car insurance policy and your driver's policy. How do I file an uninsured/underinsured motorist claimFiling a claim for UM and UIM can sometimes be tricky. Since your insurer is basically taking the place of the other driver's insurance company, you may have to prove your case. Your insurer may also only pay when the other driver is largely responsible for your injuries — which may require a court judgment to determine the extent of fault. Your claim payout may also be governed by your state's negligence law. You can help your case by preparing this information:
After making a claim, remember that:
Do I need uninsured motorist property damage in Illinois?Under Illinois law, all drivers are required to purchase uninsured motorist coverage of at least $25,000 per person and $50,000 per accident. This amount is required to register a vehicle. This is the minimum amount, but it is always recommended to purchase more.
Do I need uninsured motorist property damage in Texas?No, you do not need uninsured motorist property damage insurance in Texas – it is optional. Texas law requires car insurance companies to offer you $25,000 in uninsured motorist property damage (UMPD) coverage, but you can reject it.
Do I need uninsured motorist coverage in Oklahoma?No, uninsured motorist coverage is not required in Oklahoma, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $25,000 in uninsured motorist bodily injury coverage per person (up to $50,000 per accident).
Which of the following would not be covered by uninsured motorist coverage?Which would NOT be covered by an insured's uninsured motorist coverage: The insured causes a head -on collision with the UIM, the insured's son is struck by a hit-and-run driver, or the insured's car is hit by someone whose auto insurer is insolvent.
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What is uninsured underinsured motorist property damage
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