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You should not reject uninsured motorist coverage unless you already have collision insurance and enough medical coverage to protect you in the event of an accident caused by an uninsured driver. Uninsured motorist coverage is optional in states such as California, Florida, and Texas, but it's required in 21 other states. For example, you can't reject it in New York or Illinois.
Uninsured motorist (UM) coverage is a smart investment even if your state doesn't require it. Around 1 in 8 drivers in the U.S. don't have insurance, and getting this coverage is an inexpensive way to protect yourself financially, costing just $50 to $75 per year on average.
What Happens If You Reject Uninsured Motorist Coverage?
Without uninsured motorist coverage, you will need to use another type of coverage or pay out of pocket if you get hit by an uninsured driver. If you already have collision insurance and medical coverage of some sort, rejecting uninsured motorist coverage might be a good way to lower your premium. Otherwise, paying for uninsured motorist coverage is generally an inexpensive way to add extra protection.
Types of Uninsured Motorist Insurance
Uninsured motorist insurance is divided into two categories, bodily injury and property damage. Both kinds of UM insurance are designed to replace the liability coverage that an at-fault driver should have purchased. Covered drivers can file a claim with their own policy if they are in a crash caused by someone without liability insurance. Depending on the state and the policy, drivers might also purchase underinsured motorist (UIM) coverage, which can be used when the at-fault driver’s liability insurance is insufficient.
Uninsured Motorist Bodily Injury Coverage
Uninsured motorist bodily injury (UMBI) coverage is advisable for drivers who do not have personal injury protection (PIP) or MedPay insurance with high limits. PIP and MedPay cover medical expenses regardless of fault, so drivers with plenty of PIP or MedPay might not need UMBI.
However, keep in mind that the average uninsured motorist bodily injury claim was $32,337 in 2016, the latest year with data. So a few thousand dollars of PIP will not cover you for a serious accident with an uninsured driver. Similarly, UMBI requires you to pay fewer out-of-pocket expenses than general health insurance when you need to pay for medical bills after a qualifying accident.
Uninsured Motorist Property Damage Coverage
Uninsured motorist property damage (UMPD) coverage is only available in some states. UMPD is less important than the bodily injury variation for most drivers, since it overlaps entirely with collision insurance.
The main advantage that UMPD has over collision insurance is that it usually has lower premiums, since it covers fewer situations. UMPD could also be a worthwhile purchase if you don’t want your collision premium to increase in the event of a claim after an accident with an uninsured driver.
Check out WalletHub’s guide to uninsured motorist coverage to learn more and to see if UM is required in your state.
People also ask
What does uninsured motorist property damage cover?
Uninsured motorist property damage insurance covers the cost to repair or replace the policyholder’s vehicle or other property if it is damaged in an accident caused by an uninsured or underinsured driver. Six states and Washington, D.C., require uninsured motorist property damage insurance, and it’s optional in others.
Uninsured motorist property damage (UMPD) coverage is meant to replace the property damage liability insurance that an uninsured driver should have purchased. As a result, drivers generally buy...
read full answer by WalletHub, Financial CompanyDo I need uninsured motorist coverage?
Yes, you do need uninsured motorist coverage if you live in one of the 20 states that require all drivers to have uninsured motorist (UM) insurance. Even if uninsured motorist coverage is not mandatory in your state and can be declined, it's great to have coverage that protects you in the event of an accident with an uninsured driver.
Uninsured motorist coverage costs around $50 to $70 annually for both bodily injury and property damage coverage....
read full answer by WalletHub, Financial CompanyDo I need uninsured motorist coverage if I have collision and comprehensive?
Yes, you need uninsured motorist coverage, even if you have collision and comprehensive. Collision insurance will pay to repair your vehicle if you’re hit by an uninsured driver, but it won’t pay for any of your medical expenses, and comprehensive insurance won’t cover your costs at all after a collision. Comprehensive insurance only pays for repairs if your car is damaged by something other than a collision, such as vandalism or a natural disaster. And you would...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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