Most drivers understand the importance of having auto insurance. It can help cover damage, medical expenses, and liability concerns after an accident. But what happens if the other driver does not have insurance?
That is where uninsured motorist coverage may come into play.
Uninsured motorist coverage is designed to help when you are involved in an accident caused by a driver who does not have auto insurance. In some cases, similar coverage may also apply when the at-fault driver does not have enough insurance to handle the damages. This is commonly referred to as underinsured motorist coverage.
While every policy is different, understanding how this coverage works can help drivers make more informed decisions about their auto insurance.
What Is Uninsured Motorist Coverage?
Uninsured motorist coverage, often called UM coverage, is auto insurance coverage that can help cover certain losses if you are hit by a driver who does not have insurance.
Depending on the policy and state requirements, uninsured motorist coverage may help with:
- Medical expenses
- Lost wages
- Pain and suffering
- Injuries to passengers in your vehicle
- Damage caused by a hit-and-run driver
Some policies may also include uninsured motorist property damage coverage, which can help cover damage to your vehicle or property caused by an uninsured driver. Availability and coverage details vary by state and policy.
What Is Underinsured Motorist Coverage?
Underinsured motorist coverage, often called UIM coverage, applies when the at-fault driver has insurance, but their liability limits are not enough to cover the full cost of the accident.
For example, if another driver causes a serious accident and only carries the minimum required liability limits, those limits may not be enough to pay for medical bills, lost income, or other damages. Underinsured motorist coverage can help fill part of that gap, depending on the policy.
UM and UIM coverage are often discussed together, but they are not always the same. Drivers should review their policy carefully to understand what is included.
Why Uninsured Motorist Coverage Matters
Even though auto insurance is required in many states, not every driver follows the law. Some drivers have no insurance at all. Others may carry only the minimum required limits, which may not be enough after a serious accident.
Without uninsured or underinsured motorist coverage, you may be left trying to recover damages directly from the at-fault driver. That can be difficult, especially if the driver does not have insurance or the financial ability to pay.
Uninsured motorist coverage can help provide another layer of financial support when the other driver cannot.
Hit-and-Run Accidents
Uninsured motorist coverage may also be important in hit-and-run accidents. If a driver hits your vehicle and leaves the scene, there may be no insurance company available on the other side of the claim.
Depending on your policy and state laws, uninsured motorist coverage may help cover certain expenses related to a hit-and-run accident. This can be especially important if injuries are involved.
Medical Costs Can Add Up Quickly
After an accident, medical bills can grow quickly. Emergency care, follow-up visits, physical therapy, and time away from work can create a major financial burden.
If the at-fault driver has no insurance, uninsured motorist coverage can help cover certain injury-related costs, subject to policy terms and limits. This coverage may apply to you and, in some cases, passengers in your vehicle.
Minimum Liability Limits May Not Be Enough
Some drivers carry only the minimum liability insurance required by law. While this may satisfy legal requirements, it may not be enough after a serious accident.
If the damages exceed the other driver's policy limits, underinsured motorist coverage can help cover eligible expenses above those limits, depending on your policy. This is one reason it is important to think beyond the minimum when reviewing auto insurance options.
Is Uninsured Motorist Coverage Required?
Uninsured motorist coverage requirements vary by state. Some states require drivers to carry it, while others make it optional. In some cases, insurance companies are required to offer it, but the policyholder may be able to reject it in writing.
Because requirements can vary, drivers in Connecticut should review their policy and speak with an insurance professional to understand what applies to them.
How Much Coverage Should You Consider?
The right amount of uninsured motorist coverage depends on your situation, your policy, and your overall risk tolerance. Factors to think about may include:
- Your current liability limits
- Your health insurance situation
- Your household drivers
- How often you drive
- Whether you regularly carry passengers
- Your ability to handle out-of-pocket expenses after an accident
Uninsured and underinsured motorist coverage limits are often selected alongside other auto insurance limits. Reviewing these together can help avoid gaps or misunderstandings.
Review Your Auto Insurance Before There Is a Claim
Many people do not think about uninsured motorist coverage until after an accident. By then, it may be too late to make changes.
Reviewing your auto insurance policy ahead of time can help you understand what coverage you have, what limits apply, and where you may want to make adjustments. It is also a good opportunity to ask questions about exclusions, deductibles, and how claims may be handled.
Talk With Hebron Insurance
Uninsured motorist coverage may not be the first thing drivers think about when reviewing auto insurance, but it can be an important part of a well-rounded policy. Accidents involving uninsured, underinsured, or hit-and-run drivers can create serious financial challenges.
If you have questions about uninsured motorist coverage or want to review your auto insurance options, contact us. Hebron Insurance can help you better understand your options in Connecticut.