What is Uninsured Motorist Coverage?
Insurance coverage that protects you if you're injured by a driver who has no liability insurance or insufficient coverage to pay for your damages.
Understanding Uninsured Motorist Coverage
UM/UIM coverage is required in some states and optional in others. It covers medical expenses, lost wages, and pain and suffering when the at-fault driver cannot pay. Your own insurance company pays the claim and may subrogate against the at-fault driver.
Examples
- 1Hit-and-run accident where driver is never found
- 2Accident with driver who let insurance lapse
- 3Collision with underinsured driver whose limits are exhausted
Related Terms
Subrogation
The right of an insurance company to pursue a third party who caused the loss to recover the amount paid on a claim.
No-Fault Insurance
An auto insurance system where each driver's own insurance pays for their medical expenses and lost wages regardless of who caused the accident.
Total Loss
When a vehicle is damaged to the extent that the cost of repairs exceeds the vehicle's actual cash value, or when the vehicle cannot be safely repaired.
Bad Faith Insurance
When an insurance company unreasonably denies, delays, or underpays a valid claim, or fails to properly investigate or defend its insured.
Policy Limits
The maximum amount an insurance company will pay for a covered claim under an insurance policy.
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