What Happens If You Get Hit By An Uninsured Driver? Uninsured Motorist Accident Coverage

Although all 50 states mandate at least some minimal form of auto insurance, there are still many uninsured drivers on America’s roads. In fact, a few years ago the California Department of Insurance reported that as many as 28 percent of Californian drivers didn’t have any car insurance. Similar data have been reported for other large states, as well. Even the roads of states that aggressively enforce minimum insurance requirements are packed with uninsured drivers. Some of these people are otherwise law-abiding citizens who simply can’t afford auto insurance, but most are common criminals who face high premiums due to egregious driving records.

In recent years, some unethical auto insurance companies have sprung up around the country to aid and abet these criminals. These fly-by-night insurance firms issue temporary insurance just long enough for their customers to obtain registration, and then cancel the policy a day later. Even worse, insurance counterfeiting rings have emerged to cater to the growing market of uninsured drivers. These illegal operations have made the roads less safe, and insurance more costly for the rest of us.

In many states, your insurance only covers you for damage that you cause to others. If you’re injured by someone else, their insurance pays for any damages that you sustain. So what happens when you’re injured by a drive with no insurance? In most cases, you’re out of luck unless you have uninsured motorist (UM) coverage.

Uninsured Motorist Insurance

In spite of its name, uninsured motorist (UM) insurance is not designed to protect the uninsured driver. UM coverage is designed for your protection - to insure against bodily injuries you might sustain as a result of a traffic accident with an uninsured driver. In most states, UM coverage also applies to damages sustained in hit-and-run incidents.

Unfortunately, UM coverage applies only to physical injuries in most states, meaning that damage to your vehicle isn’t normally covered. However, if you have collision insurance, property damage caused by uninsured or hit-and-run drivers falls under this coverage in many states. This is yet another added benefit of having so-called “full coverage” insurance, with both collision and comprehensive coverages.

How Much UM Insurance Should You Have?

In general, you should have as much UM insurance as all other types of personal property coverage. The good news is that, despite the surprisingly large number of uninsured motorists on the road, the likelihood that you’ll have to use UM insurance is lower than other forms of coverage - which means you can carry an equal amount of coverage for much lower premiums.

UM insurance is one of the important types of coverage that you’re unlikely to get in a standard, cookie-cutter policy. This is why it is so important to shop around, compare prices and plans, and learn as much about your insurance as you possibly can. After all, if you are unlucky enough to be involved in a hit-and-run or an accident with an uninsured driver, you will be thankful that you planned ahead and paid a small monthly premium for UM insurance.