What is Uninsured Motorist Insurance?
Uninsured motorist and underinsured motorist are commercial auto insurance coverages that protect you and your company vehicle if you’re involved in a car accident caused by a driver with either no insurance, or too little coverage.
Uninsured motorist insurance is valuable protection to have because it helps pay for medical bills and damage to property in a situation where you would otherwise be without adequate coverage.
But how does underinsured motorist coverage work? When you sit down with an independent agent to discuss uninsured motorist coverage, it’s important to know there are three coverage types:
Uninsured Motorist Insurance (UM)
Uninsured motorist coverage, also called uninsured motorist bodily injury insurance or UMBI, protects your company if the person who hits your car has no liability insurance or you are the victim of a hit-and-run. UM coverage extends to you and your passengers and covers things like:
- Medical care for any resulting injuries
- Lost wages if you must miss work
- Pain and suffering
Underinsured Motorist Insurance (UIM)
Underinsured motorist insurance provides coverage for incidents where the at-fault driver has insurance, but not enough coverage to pay for the damages they caused. Like UM, underinsured motorist coverage extends to you and any passengers in your company vehicle and covers:
- Medical care for any resulting injuries
- Lost wages if you must miss work
- Pain and suffering
Because they’re so similar, some states bundle UM and UIM coverage together.
Uninsured Motorist Property Damage Insurance (UMPD)
Unlike other uninsured motorist options, uninsured motorist property damage insurance covers damage to your vehicle. In some states, coverage may also extend to personal property – meaning any personal items in your company car at the time of the accident.
Not every state offers UMPD coverage so make sure to understand if it’s available where you do business.
Do I Need Uninsured Motorist Coverage?
In most cases, uninsured motorist coverage is offered as an optional protection. But, there could be situations where you may be required to have uninsured or underinsured motorist coverage in place.
According to Pew Research, in 2022, 14.5% of all crashes involved a hit-and-run driver, up from 12.1% in the pre-pandemic year of 2019.
Even if your state doesn’t require you to have uninsured motorist insurance, it’s worth considering for the peace of mind you’ll get knowing your company vehicles are fully protected.
Setting Up Uninsured Motorist Insurance Coverage
Find an insurance agent today to discuss your needs and build the right commercial auto insurance policy for you. Make sure to also ask about Emergency Road Assistance, Hired Auto Physical Damage and Non Owned Liability coverages.
*Originally published on February 14, 2022