How Uninsured Motorist Coverage Works

Updated on April 24, 2023

Accidents involving uninsured drivers are gradually becoming a nuisance on our roads. According to a report by the Insurance Research Council in 2021, one in eight drivers is uninsured. The big question remains, what happens if a driver without car insurance crashes into you? An uninsured motorist coverage will help you escape the expensive expenses in such situations, and here is how.

What’s Uninsured Motorist Coverage?

Uninsured motorist coverage is a car insurance type that covers any medical expenses if you or your passengers get injured in a car accident. The car insurance includes all accidents caused by the following:

  • A hit-and-run driver
  • An uninsured driver
  • A driver whose insurance denies coverage or is out of business

It pays for all medical bills, pain and suffering compensation, lost wages, and even funeral expenses in cases where the accident was fatal. All these expenses must be related to the accident to be included in the claim by contacting an ideal uninsured car accident lawyer.

There is uninsured motorist property damage available for purchase in some states. The UMPD coverage pays for damages to your car if the driver responsible is uninsured. It would help to note that if you have collision coverage, it will cover car damage whether the driver that hit you is insured.

Sometimes, the driver that hit you may be insured, but their liability insurance is insufficient to settle your medical bills. Underinsured motorist insurance (UIM) pays for any medical bills and accident-related expenses in such a situation.

Uninsured Motorist Coverage Broken Down

State laws generally require all motorists to have some level of automobile liability insurance coverage. In the US, approximately twenty states mandate drivers to have enough insurance, at least uninsured motorist coverage.

Although these regulations exist, it’s alarming that one in every eight drivers in the US lacks insurance coverage. Florida leads with 26.7% uninsured drivers, while Maine has the lowest figure, 4.5%.

Uninsured motorist coverage protects you against financial losses from an accident caused by a driver with inadequate coverage. In normal circumstances, you file a claim with the insurance company of the driver at fault. But if the driver has no coverage, no insurance company can settle your medical bills or car repairs.

An uninsured motorist coverage helps minimize how much you’ll need to pay in such a situation. Note that having this coverage is optional in many states, but having it brings some reassurance in case you get in an accident.

What Are the Requirements for Claiming Uninsured Motorist Coverage?

If the driver at fault is found not to have insurance during an accident investigation, the police will start by notifying the other drivers involved. It would be best if you also tried to gather as much information as possible in case the police do not respond. You can ask for names and phone numbers of potential witnesses or even photograph the crash scene.

Contact your attorney and file a claim with your insurance company, ensuring you disclose all accident-related information. Note that the time limit for waiting until you file your claim varies with each insurance provider.

The insurance company settling your claim will request copies and billings for all automobile repairs and medical care received that are related to the accident. They can deny these amounts if they find the submitted costs are unnecessary or unrelated to the accident. But the policyholder also has the right to challenge the insurance company’s decision, and the case goes to binding arbitration.

An uninsured motorist coverage helps you avoid the expensive hospital and vehicle repair expenses of getting involved in an accident with an uninsured driver. It would help to note there are two types of UM; bodily injury and property damage. Get uninsured motorist coverage to avoid all the stress of uninsured and underinsured drivers.

The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.