Understanding Uninsured Motorists Insurance Definition In 2023
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Introduction
When it comes to car insurance, most people have heard of liability insurance, collision insurance, and comprehensive insurance. However, not everyone is familiar with uninsured motorists insurance. In this article, we'll define what uninsured motorists insurance is, why you need it, and what it covers.
What is Uninsured Motorists Insurance?
Uninsured motorists insurance, also known as uninsured motorist coverage, is a type of car insurance that provides protection to drivers who are involved in an accident with an uninsured or underinsured driver. In other words, if you're hit by a driver who doesn't have enough insurance or no insurance at all, uninsured motorists insurance will cover the damages.
Why Do You Need Uninsured Motorists Insurance?
While it's mandatory to have car insurance in most states, not everyone follows the law. According to the Insurance Information Institute, around 13% of drivers in the United States are uninsured. If you're involved in an accident with an uninsured driver, you could be left with the bill for damages, medical expenses, and lost wages. Uninsured motorists insurance provides a safety net in case you're hit by an uninsured driver.
What Does Uninsured Motorists Insurance Cover?
Uninsured motorists insurance typically covers bodily injury, property damage, and medical expenses. Bodily injury coverage pays for injuries sustained by you or your passengers, while property damage coverage pays for damage to your vehicle. Medical expenses coverage pays for medical treatment needed after an accident. Some policies may also cover lost wages, pain and suffering, and legal fees.
Types of Uninsured Motorists Insurance
There are two types of uninsured motorists insurance: uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). UMBI covers injuries sustained by you or your passengers, while UMPD covers damage to your vehicle. Some states may require you to have both types of coverage, while others may only require one.
How Much Uninsured Motorists Insurance Do You Need?
The amount of uninsured motorists insurance you need depends on several factors, including the state you live in, the value of your vehicle, and your personal financial situation. In general, it's a good idea to have enough coverage to protect your assets in case of an accident.
How Much Does Uninsured Motorists Insurance Cost?
The cost of uninsured motorists insurance varies depending on several factors, including your driving record, the type of car you drive, and the amount of coverage you need. In general, uninsured motorists insurance is relatively inexpensive compared to other types of car insurance.
Conclusion
Uninsured motorists insurance is an important type of car insurance that provides protection in case you're involved in an accident with an uninsured or underinsured driver. While it's not required in every state, it's a good idea to have this coverage to protect yourself and your assets. If you're unsure whether you need uninsured motorists insurance, speak to your insurance agent or broker to learn more.