Uninsured/underinsured motorist (UM/UIM) coverage is a type of car insurance coverage that protects you if you are involved in an accident with a driver who either has no insurance or insufficient insurance coverage to fully compensate for your injuries or damages. UM/UIM coverage helps fill the gap and provides additional financial protection. Here’s a closer look at UM/UIM coverage and other common types of car insurance coverage:
- Uninsured/Underinsured Motorist (UM/UIM) Coverage:
UM/UIM coverage has two components:
- Uninsured Motorist (UM) Coverage: This coverage protects you if you are involved in an accident with a driver who does not have liability insurance.
- Underinsured Motorist (UIM) Coverage: This coverage applies when the at-fault driver’s insurance coverage is not sufficient to cover the full extent of your injuries or damages.
UM/UIM coverage typically includes:
- Bodily Injury Coverage: This covers medical expenses, lost wages, pain and suffering, and other damages resulting from injuries sustained in an accident with an uninsured or underinsured driver.
- Property Damage Coverage: This covers repairs or replacement of your vehicle or other property damaged in an accident with an uninsured or underinsured driver.
- Liability Coverage:
Liability coverage is a fundamental type of car insurance required in most jurisdictions. It provides protection for the costs associated with injuries or property damage you cause to others in an accident where you are at fault. - Collision Coverage:
Collision coverage helps pay for the repair or replacement costs of your vehicle if it is damaged in a collision with another vehicle or object, regardless of who is at fault. - Comprehensive Coverage:
Comprehensive coverage provides protection for damage or loss to your vehicle that occurs due to non-collision events, such as theft, vandalism, fire, natural disasters, falling objects, and damage caused by animals. - Personal Injury Protection (PIP) or Medical Payments Coverage:
Personal Injury Protection (PIP) or Medical Payments Coverage provides coverage for medical expenses resulting from injuries sustained in an accident, regardless of fault. It may also cover other costs such as rehabilitation, lost wages, and funeral expenses. - Gap Insurance:
Gap insurance covers the “gap” between the actual cash value of your vehicle and the amount you owe on a car loan or lease in the event of a total loss. - Rental Car Coverage:
Rental car coverage, also known as “loss of use” coverage, reimburses you for the cost of a rental vehicle while your car is being repaired due to a covered claim.
The availability and specifics of these types of coverage can vary depending on the insurance company and the jurisdiction in which you reside. When purchasing car insurance, carefully review the coverage options and policy terms to ensure you have the appropriate coverage for your needs.
