Uninsured Motorist Insurance

What is Uninsured Motorist Insurance and How Does it Work?

Uninsured motorist insurance, also known as liability insurance, is a type of auto insurance that provides financial protection to the victim of an uninsured motorist accident.

• It covers damages or losses caused by another driver who does not have insurance and is found at fault for an accident.
• The policyholder can be required to pay a portion of the total costs if they are found liable, up to their policy limits.

Coverage Provisions

The coverage provisions for uninsured motorist insurance vary by state and may include:

• Limits on damages: The amount the policyholder is responsible for paying in the event of an accident.
• Deductibles: The amount the policyholder must pay out-of-pocket before the insurance company pays any claims.
• Co-payments: A percentage of the total costs that the policyholder may be required to pay.

When is Uninsured Motorist Insurance Required?

Uninsured motorist insurance is typically required in states with high rates of uninsured drivers. However, it's not always necessary and should be checked with your state's insurance department to determine if it's required.

Example Scenario

John is driving down the highway when another driver, without any insurance, rear-ends him. The other driver leaves their vehicle at the scene and refuses to provide information. John's uninsured motorist policy provides $100,000 in coverage for damages and medical expenses.