You need uninsured motorist property damage (UMPD) insurance if you live in one of the six states where it is required, or the District of Columbia. If you live elsewhere, you do not need to purchase UMPD coverage, and it may not even be available.
Places Where You Need Uninsured Motorist Property Damage Insurance
UMPD pays to repair or replace the policyholder’s vehicle if it is damaged in an accident caused by an uninsured driver. Some states also require underinsured motorist property damage insurance, which applies if the at-fault driver does not have high enough liability limits to pay for the damage they cause.
If you’re not required to purchase UMPD, collision insurance is a good alternative, since it applies to a wider variety of situations. Collision insurance pays to repair or replace your car after any accident, regardless of who was at fault, so it covers vehicle damage by an uninsured or underinsured driver.
Underinsured motorist coverage is a type of car insurance that applies when the policyholder is in an accident caused by a driver who doesn’t have sufficient liability insurance. If the policyholder’s expenses exceed the at-fault driver’s limits, underinsured motorist covers the remaining bills up to a certain amount.
Say that you are involved in an accident that leaves you with $35,000 in vehicle damage. Typically, the at-fault driver’s property damage liability insurance would pay to repair your car. But if that driver’s liability insurance policy only covers $30,000 in property damage per accident, underinsured motorist coverage would pick up the rest. This would prevent you from having to either file a lawsuit against the driver or pay the remaining $5,000 yourself.
Underinsured motorist coverage is required in some states along with uninsured motorist insurance, which applies when the at-fault driver doesn’t have any liability insurance at all. But even if it’s not required, underinsured motorist coverage is still optional in most states. To learn more, check out WalletHub’s guide to uninsured/underinsured motorist coverage.
Yes, there is a deductible for uninsured motorist property damage (UMPD) insurance in most states that require it or make it available. States that allow insurers to sell UMPD typically dictate the deductible amount, and depending on where you live, it can be as high as $1,000.
A car insurance … read full answerdeductible is the amount that a policyholder must pay for a claim before the insurance company will cover any costs. Most types of insurance that require deductibles, like collision and comprehensive insurance, allow the policyholder to choose the amount, but that’s usually not the case for UMPD.
Uninsured Motorist Property Damage Deductibles by State
In some states, your UMPD deductible might vary based on the situation. For example, Virginia and Washington both require a UMPD deductible that’s specific to hit-and-run claims. Additionally, several states, including California and Indiana, offer UMPD but do not specify a deductible, leaving it up to the discretion of each insurance company.
When someone crashes into you without insurance, then you have to use your own insurance to pay for your medical expenses or vehicle repairs. You can file a claim using uninsured motorist coverage, collision insurance, personal injury protection (PIP), or MedPay, depending on the specifics of your policy and the wreck.… read full answer
Coverage That Applies If Someone Crashes Into You Without Insurance
Uninsured motorist coverage: Pays for your vehicle repairs and medical expenses if you’re hit by someone without insurance. Required in 20 states.
Collision insurance: Repairs or replaces your car after an accident. Not required by state laws but may be required for leased or financed cars.
Medical payments (MedPay) coverage: Pays for medical bills after an accident, including copays, coinsurance, and deductibles from other types of insurance. Required in two states.
Even if the at-fault driver is uninsured, you should still get their personal information and document the wreck in case you need to file a lawsuit at some point. You can sue the uninsured driver to recover damages after an accident, but you may be limited by your state’s laws and the driver’s financial situation. If you live in a no-fault state, you can only sue the at-fault driver if you are seriously injured in the accident or incur significant medical expenses. Even if your state does not have those lawsuit restrictions, suing might not be worth it, since an uninsured motorist is unlikely to have the financial resources to cover your expenses.
What Happens If You’re Uninsured and Someone Hits You?
If someone hits you and you’re the one without insurance, then your medical bills and vehicle repairs will still be covered by the at-fault driver’s liability insurance. However, if you live in a “No Pay, No Play” state such as California, you won’t be allowed to sue the at-fault driver for non-economic damages like pain and suffering. Additionally, if the police are called to file a report, they’ll likely discover that you were driving without coverage, and you’ll have to face your state’s penalties.
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