Uninsured Motorist Insurance, or UM coverage, is a specific type of auto insurance you can purchase that protects you, not the other driver, when you’re hit by someone who doesn’t have car insurance. Yes, even though most states require drivers to carry insurance, plenty of people are still out there driving without it.
According to the Insurance Research Council, about 1 in 7 drivers in the U.S. are uninsured, and in places like Mississippi or New Mexico, that number is even higher.
A common situation where uninsured motorist insurance becomes useful is when you’re in a crash that clearly wasn’t your fault, but the other driver either has no insurance or can’t be found at all. And since you need to prove fault and damages in these cases, the situation might also tie into the elements of a negligence claim, which often include proving the other driver owed you a duty of care, breached that duty, and caused actual damages as a result.
How Uninsured Motorist Insurance Actually Works
If you get into an accident, and the other driver is legally at fault but has no insurance, your uninsured motorist policy will cover the costs. This can include:
- Medical expenses for you and your passengers
- Lost wages if your injuries prevent you from working
- Pain and suffering (depending on the terms of your policy)
- In some cases, damage to your vehicle, though this varies by state
This also applies if the at-fault driver runs off and can’t be identified, such as in a hit-and-run. In the eyes of your insurance company, a hit-and-run driver is treated as uninsured, so you’d be covered the same way.
Now, you should know that there are two main types of uninsured motorist coverage:
- UMBI (Uninsured Motorist Bodily Injury): Covers medical costs, lost income, and other personal injury damages.
- UMPD (Uninsured Motorist Property Damage): Pays for repairs to your car or replacement if it’s totaled.
How Do You Get Uninsured Motorist Coverage?
In many states, UM coverage is required by law. In others, it’s optional, but insurers are still required to offer it to you. In fact, in Georgia, when you buy or renew a car insurance policy, you must sign a form either accepting or rejecting uninsured motorist coverage.
If you accept it, you can also choose to extend that coverage to your spouse, family members living in your home, and even passengers riding in your car at the time of an accident.
There are also two versions of coverage to pick from:
- Reduced UM coverage: This fills the gap between what the at-fault driver’s insurance pays and what your own policy covers, up to your own limits.
- Add-On UM coverage: This stacks on top of the at-fault driver’s limits. So, whatever their insurance pays, your coverage can kick in on top of that, giving you more protection.
Both types can be critical depending on how much coverage you need and what risks you’re trying to protect against.
When Can Uninsured Motorist Insurance Be Useful?
UM coverage is useful more often than people realize. It’s most obviously useful when you’re hit by a driver who has no insurance. But it’s also a lifesaver when:
- You’re involved in a hit-and-run, and the driver can’t be found.
- The at-fault driver’s coverage isn’t nearly enough to pay for your medical care or car damage.
- You’ve suffered injuries that require time off work, therapy, or long-term care.
- You need to protect not just yourself, but passengers and family members who rely on you.
Let’s say you’re rear-ended at a red light. You suffer a back injury, and the driver who hit you doesn’t have any insurance. Your medical bills reach $40,000. Without UM coverage, you’d be left suing someone who likely can’t pay. But with it, your insurer steps in, and your treatment is covered with no out-of-pocket nightmare.
In summary, if you can afford it, and often, it doesn’t cost much more to add, it’s a wise move. You can’t control who’s driving next to you, but you can control how well you’re protected if they mess up.
