Uninsured Motorist.

Uninsured & Underinsured Motorist

Uninsured motorist insurance can spare you from shelling out money for crashes you didn't cause.

If a driver without insurance hits your vehicle, you could be on the hook for big medical and repair bills - unless you have uninsured motorist coverage.

What is uninsured motorist coverage?

Uninsured motorist insurance spares you from shelling out your own money for injuries or property damage from crashes you didn't cause. Generally, it doesn't cost much to add to your auto policy.

How uninsured motorist coverage works

An uninsured motorist is a person that does not have liability car insurance. When you are in an accident and the other driver is at fault, their insurance is supposed to pay for your car repairs and medical costs for you and your passengers. If the other driver does not have insurance and can not pay, you can wind up holding the bill.

Uninsured motorist coverage is designed to fill the gap between your costs and the other driver's ability to pay.

Uninsured vs. underinsured motorist coverage

Uninsured motorist coverage is often sold with underinsured motorist coverage. They both pay for the same expenses after an accident, with one key difference: Uninsured motorist coverage pays out after a crash with an at-fault driver who has no insurance, while underinsured motorist coverage is reserved for accidents with an at-fault driver who has some insurance, but not enough to cover all costs.

What does uninsured motorist coverage pay for?

Uninsured motorist coverage pays for injuries or damages that you, family members in your household or passengers in your car suffer after an accident with an at-fault driver who has no insurance.

There are two types of uninsured motorist coverage:

• Uninsured motorist bodily injury, or UMBI, pays for medical bills, pain and suffering, lost wages if you can't work after an accident and funeral expenses after a crash with an at-fault driver who doesn't have car insurance. It may also cover you if you're hit as a pedestrian or while riding your bike.
• Uninsured property damage, or UMPD, pays for damage to your car or property after an accident with an at-fault driver with no car insurance. A deductible may apply.

Do you need uninsured motorist coverage if you have health insurance?

It is important to note that nearly 13% of drivers nationwide (about 1 in 8) drive uninsured according 2019 study by the Insurance Research Council, the most recent data available. While your health insurance should pay for medical treatment after a wreck, uninsured motorist coverage could still be beneficial, as it can cover ongoing expenses like long-term care. Plus in some cases there is no deductible for UMBI coverage, which could offset a high health insurance deductible.

Does uninsured motorist coverage cover hit-and-runs?

Yes, some care insurers will use your uninsured motorist coverage to pay for injuries or damage expenses after a hit-and-run accident.

Is it worth getting uninsured motorist coverage?

In Texas it is not currently a requirement to carry uninsured motorist coverage. But we highly recommend it. This type of insurance costs relatively little and could potentially save you tens of thousands of dollars if you are hit by an uninsured driver.

How can collision coverage help?2

Collision coverage can also be added to a car insurance policy (at an extra cost), and will pay to repair your vehicle if you're in an accident, if you were at fault, if the other (at-fault) driver is uninsured, or if you were hit by a hit-and-run driver. But the big thing to keep in mind here is that collision coverage won't apply to your injuries, just the cost of getting your car fixed (up to the limits of your coverage). 

1Article written by Ben Moore at NerdWallet, unless otherwise noted.

2NOLO, excerpt from article written by David Goguen, J.D.