Many people know a bit about the basic benefits of uninsured motorist insurance, but there are many great and surprising benefits too! This article covers the basic definition and benefits of uninsured motorist coverage and those less known benefits. In order to understand the benefits we must first have an elementary understanding of what UM is. Note that UM coverage is required by law in California.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage, also known as UM coverage, is designed to cover damages that result from an accident caused by a driver who is either uninsured or underinsured. This type of coverage is important because if you are in an accident with an uninsured driver, there may be no way for you to recover the costs of your medical bills, lost wages, and other expenses. The most known benefits of this type of insurance are coverage of medical expenses and lost wages
Types of Uninsured Motorist Coverage
There are two types of uninsured motorist coverage available in California: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI coverage provides protection for bodily injury or death caused by an uninsured or underinsured driver, while UMPD coverage provides protection for damage to your vehicle caused by an uninsured or underinsured driver.
How Does Uninsured Motorist Coverage Work?
If you are in an accident with an uninsured driver and you have uninsured motorist coverage, your insurance company will pay for damages that the other driver would have been responsible for, up to the limits of your policy. This includes medical bills, lost wages, and other related expenses. If the other driver is underinsured, your insurance company will cover the remaining costs that exceed the other driver’s insurance policy limit.
Do You Need Uninsured Motorist Coverage?
Although uninsured motorist coverage is not required in every state, it is required in California. It is also highly recommended, even if it is not required by law in your state. Uninsured motorist coverage can provide you with peace of mind knowing that you and your passengers will be protected in the event of an accident caused by an uninsured or underinsured driver.
How Much Uninsured Motorist Coverage Do You Need?
The amount of uninsured motorist coverage you need depends on a variety of factors, including your assets and the likelihood of being involved in an accident with an uninsured driver. In California, the minimum amount of uninsured motorist coverage required by law is $15,000 per person and $30,000 per accident for bodily injury. The minimum amount of uninsured motorist property damage coverage required by law is $3,500.
How to Purchase Uninsured Motorist Coverage
Uninsured motorist coverage is typically an optional add-on to your car insurance policy. When you purchase car insurance, you can select the amount of uninsured motorist coverage you want to include in your policy. It is important to carefully consider your options and choose a policy that provides adequate protection for you and your passengers.
Less known Benefits of UM
Property Damage Coverage
In California, uninsured motorist coverage can also provide property damage coverage in case your vehicle or other property is damaged by an uninsured driver. This coverage can help cover the costs of repairing or replacing your vehicle or property.
Uninsured motorist coverage can also provide coverage in hit-and-run accidents, where the other driver flees the scene and cannot be identified. This coverage can help cover the costs of repairing your vehicle or property and any medical expenses you may incur as a result of the accident.
Underinsured Motorist Coverage
In addition to uninsured motorist coverage, you may also have the option to purchase underinsured motorist coverage. This coverage provides protection if the at-fault driver has insurance but their coverage limits are not enough to cover your damages. Underinsured motorist coverage can help make up the difference between the at-fault driver’s coverage and your actual damages.
Contact an Insurance Agent
Uninsured motorist coverage is an important type of insurance coverage that can provide valuable protection in the event of an accident with an uninsured driver. It can help cover medical expenses, lost wages, property damage, and other costs associated with an accident. If you have questions about uninsured motorist coverage or want to purchase it for your policy, contact your insurance agent or company for more information.
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