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uninsured and underinsured coverage

protection from unprotected motorists

What happens when the driver who hit you doesn't have enough liability coverage? Or, even worse, takes off? Uninsured and underinsured motorist coverages exist to financially protect you from irresponsible drivers. And compared to liability, comprehensive, and collision, it's quite affordable.

Quick coverage facts

  • Used when the at-fault driver doesn't have enough liability coverage
  • Can save you from having to pay for a car accident you didn't cause
  • Costs more to add to your policy in states with more uninsured drivers

How uninsured and underinsured motorist coverage works

Okay, so you got into a car accident (bummer), but it wasn't your fault (phew). In most circumstances, you'd file a claim with the at-fault driver's car insurance company, get your car repaired, and recoup compensation for any lost wages and medical expenses. No out-of-pocket expenses to you.

1 in 7 drivers are uninsured

But in some cases, the driver who sideswiped you doesn't have car insurance, or at least doesn't have enough of it. This happens more than you might expect. In 2011, the Insurance Research Council estimated that 1 in 7 drivers go uninsured. And minimum liability requirements don't always offer enough coverage after a car accident.

When this happens and you don't have uninsured or underinsured motorist coverage, you'll need to pay out-of-pocket for damages and medical expenses not covered by the other driver.

The difference between uninsured and underinsured coverage

Uninsured motorist coverage protects you if you're in an accident with an at-fault driver who doesn't carry liability insurance.

Underinsured motorist coverage, on the other hand, steps in when you're in an accident with an at-fault driver whose liability limits are too low to cover the damage or medical expenses. The at-fault driver's insurance will typically pay for all damages up to the policy limits, and then your underinsured motorist coverage will cover the excess amount up to the limits you select.

The 2 types of uninsured and underinsured motorist coverage

Like liability insurance, uninsured and underinsured motorist breaks down into 2 coverage types: bodily injury and property damage.

Uninsured/underinsured motorist bodily injury coverage (UMBI)

Covers medical expenses, lost wages, injury-related expenses for you, any permissive driver, and your passengers. It also provides coverage for injuries sustained in hit-and-run accidents.

Uninsured/underinsured motorist property damage coverage (UMPD)

If your car is damaged in an accident with an uninsured or underinsured driver, this coverage steps in to help. Unlike UMBI, this coverage doesn't protect against damage caused by hit-and-run collisions.

States that require uninsured and/or underinsured motorist coverage

Because of the high number of uninsured drivers on the road, many states require drivers to carry at least uninsured motorist coverage, if not both uninsured and underinsured motorist coverage.

States requiring uninsured coverage

How stacking works

If you have more than one car on your policy and you "stack" your uninsured/underinsured coverage, your selected limit is multiplied by the number of cars. If you're a Pennsylvania driver with UMBI limits of $50,000/$100,000 and you have 2 cars on your policy, stacking would increase your limits to $100,000 per person, $200,000 per accident.

Adding uninsured/underinsured coverage to your car insurance policy

If you live in a state where this coverage is optional and want to add it to your Esurance policy, you can login to do this anytime.

If you're not a customer and you're in the market for new car insurance, start your free quote now.

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