insurance

Uninsured Motorist Coverage

Insurance coverage that protects you when you're injured in an accident caused by a driver who has no insurance or insufficient insurance to cover your damages. This coverage pays for your medical bills, lost wages, and other damages when the at-fault driver cannot pay.

Example

“When Maria was rear-ended by an uninsured driver, her uninsured motorist coverage paid her $15,000 in medical bills that the other driver couldn't afford.”

Memory Tip

Think 'UM' (Uninsured Motorist) = 'Uh-oh, Me!' - protection when the other driver can't pay and you're stuck with bills.

Why It Matters

With roughly 13% of drivers uninsured nationally, this coverage protects your finances when an at-fault driver cannot pay for damages they cause. Without it, you might have to pay your own medical bills and sue an uninsured driver who likely cannot pay a judgment.

Common Misconception

Many drivers think their collision coverage or the other driver's insurance will always cover accident costs. Uninsured motorist coverage specifically protects against bodily injury when the other driver has no insurance, while collision covers vehicle damage regardless of fault.

In Practice

Mike has $100,000 in uninsured motorist coverage with a $500 deductible. An uninsured driver runs a red light and hits him, causing $25,000 in medical bills and $10,000 in lost wages. Mike's UM coverage pays the full $35,000 minus his $500 deductible, leaving him with only $500 out-of-pocket instead of $35,000.

Etymology

Developed in the 1950s as states began requiring auto insurance, but enforcement remained difficult, leaving many drivers unprotected when hit by uninsured motorists.

Common Misspellings

uninsured motorest coverageuninshured motorist coverageuninsured moterist coverageuninsured motorist coverege

More in insurance

Other insurance terms you should know

deductibleThe amount you pay out-of-pocket before your insurance begin…insurance premiumThe amount paid periodically to an insurance company in exch…deductibleThe amount a policyholder must pay out of pocket before insu…copayA fixed amount paid by an insured person at the time of a me…coinsuranceA cost-sharing arrangement where the insured pays a percenta…out-of-pocket maximumThe most an insured person will pay for covered healthcare s…

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