UPDATED: APRIL 27, 2023 | 3 MIN READ
Taking out uninsured and underinsured motorist coverage is an important consideration that should be taken in line with the statutory requirements in your state. Not all states make it mandatory, however. It’s best to check this with your insurance carrier. Read on to discover why these types of insurance coverage are essential, as they offer protection if you’re in an accident with an uninsured or underinsured driver.
What is Uninsured Motorist Coverage?
Uninsured auto coverage is an added coverage offered to motorists by insurance carriers. It’s not mandated in all states, however. You take a risk by not including it on your auto insurance policy.
Uninsured coverage covers injuries and damage caused as a result of an uninsured driver hitting you. It covers injuries to you and your passengers and any damage to your car when you’re in an accident with an uninsured driver.
Types of coverage included:
- Uninsured Motorist Property Damage (UMPD): This covers car repairs from damage caused to your car and any property damage
- Uninsured Motorist Bodily Injury Coverage (UMBI): This covers losses of wages, medical bills, and any other costs that occur after an accident.
The cheapest providers of uninsured motorist coverage
Most insurance providers offer this type of coverage. GEICO offers the cheapest coverage with an annual premium of $1,560. The cheapest carriers include:
- GEICO
- State Farm
- USAA (for military associates)
- Allstate
- Liberty Mutual
- Nationwide
What states require uninsured motorist insurance?
Twenty-two states require drivers to have UM coverage by law.
- Connecticut
- District of Columbia
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Carolina
- South Dakota
- Vermont
- Virginia
- West Virginia
- Wisconsin
What happens if I don’t have uninsured auto insurance?
You must pay for any damages if you’re involved in a collision or a hit-and-run accident with an uninsured vehicle and don’t have UM coverage. Having this cover means your insurance carrier will pay for any damage caused to your car and any medical bills.
Some states require UM coverage on all auto insurance policies. If you’re caught without uninsured coverage in a state where it’s mandatory, you face a fine and could have your license suspended.
What is underinsured motorist coverage?
Underinsured motorist coverage is an additional coverage option you can add to your policy to protect yourself if a driver hits you with an insufficient level of insurance. This provides coverage for bodily injuries to yourself and your passengers and any medical expenses. It also provides coverage for damage to property resulting from the collision.
Cheapest providers of underinsured motorist coverage
Most insurance companies provide this coverage. USAA has one of the cheapest policies, with an annual premium of $1,690. As this is for those with military affiliations. GEICO offers a policy for $1,560. The most affordable providers include:
- GEICO
- Allstate
- State Farm
- Progressive
- Travelers
What states require underinsured motorist coverage?
Most states have laws requiring insurance companies to offer underinsured motorist coverage. Drivers can reject it in writing. However, 14 states have a mandate that requires drivers to have UIM coverage.
- Connecticut
- Maine
- Maryland
- Massachusetts
- Minnesota
- Nebraska
- New Jersey
- North Carolina
- North Dakota
- Oregon
- South Dakota
- Vermont
- Virginia
- Wisconsin
What happens if I don’t have underinsured motorist coverage?
Uninsured motorist coverage helps cover the expenses of an accident with a driver with insufficient insurance coverage. Without it, you’d have to pay any bills, including medical expenses and auto repairs, when an underinsured driver collides with your vehicle.
Factors To Consider When Buying Uninsured and Underinsured Motorist Coverage
Check the level of uninsured and underinsured drivers in your state. This can help you make an informed decision.
The states with the highest number of uninsured drivers are Alabama, Alaska, and Arizona.
Maine, Massachusetts, and Wyoming have among the lowest percentages of uninsured drivers, yet it’s wise to consider other factors when deciding to include this in our policy. Inclement weather, your driving frequency, and peace of mind knowing you have personal injury protection and collision insurance if a driver hits you without enough insurance.
What is the average cost of uninsured auto coverage?
Uninsured auto coverage costs approximately $5.50 per month or $63 annually. It’s worth considering if you live in a state with many uninsured drivers.
What is the average cost of underinsured auto coverage?
Underinsured motorist coverage costs an average of $55 annually or $4.50 monthly. This can vary depending on your state and your driving history.
What factors can affect the price?
Several factors affect the price. They include your ZIP code, age, and previous driving record. Check with your insurance carrier if installing any safety devices can be counted to reduce your premium.
FAQs
What is uninsured motorist coverage, and why is this coverage necessary?
This insurance provides coverage for you if you’re in a collision with a driver who doesn’t have enough insurance to cover the costs of damage to your car and any injuries caused. It also covers your expense from hit-and-run accidents.
What is the difference between insured and underinsured?
All states require insurance. This covers you in the event of any accident you’re in. Being underinsured means, you don’t have enough coverage to cover all the expenses caused by an accident.
What is the best protection against uninsured drivers?
Including uninsured motorist and collision coverage in your policy is the best protection. These coverages protect you if you’re in an accident.
Is uninsured motorist required in Georgia?
Georgia doesn’t require drivers to have uninsured motorist coverage.
Is uninsured motorist coverage required in Virginia?
Virginia doesn’t require drivers to have uninsured motorist coverage.
What does uninsured motorist coverage cover?
Uninsured motorist coverage covers injuries to the driver and passengers and any damage to your vehicle if you’re in a collision with a driver who doesn’t have motor insurance.
What is the difference between bodily injury liability coverage and uninsured motorist coverage?
Bodily injury liability insurance covers medical payments for the driver in the car accident. Uninsured motor coverage pays for property damage caused to the vehicle during a collision with an uninsured driver.
Find a Policy With Uninsured and Underinsured Motorist Coverage
Adding uninsured and underinsured motorist coverage to your policy is a crucial decision. This coverage protects you during a collision with an uninsured or underinsured driver. Some states make it mandatory to add this to your policy. If it’s not mandatory where you live, it’s worth considering if there’s a high level of uninsured drivers in your state. Use our online quote tool to find out who has the best rates.
