Do you have to pay a deductible for uninsured motorist coverage?

Uninsured motorist bodily injury coverage pays for medical care, loss of income, and funeral expenses after an accident where an uninsured driver is at fault. Uninsured motorist bodily injury insurance covers the policyholder, his or her family members, and passengers. Most policies even pay for an accident sustained when the policyholder is biking, walking, or in another person’s car.… read full answer

In other words, uninsured motorist bodily injury (UMBI) insurance is essentially the reverse of your liability policy. Instead of buying coverage for damage that you cause, UMBI protects you when a driver who does not have liability insurance hits you.

Uninsured Motorist Bodily Injury Limits and Requirements

UMBI coverage limits are usually expressed as two figures, one for the maximum dollar amount of UMBI that your insurer will pay per person and the other for the maximum amount per accident. For example, a policy with UMBI limits of $10,000/$30,000 would have coverage up to $10,000 for one person’s injuries and up to $30,000 total for all injuries caused by one car accident.

UMBI coverage is required in less than half of states, but drivers can buy it in most states even if it is not mandatory. States with mandatory UMBI usually require limits equal to the state’s bodily injury liability coverage limits, since UMBI is meant to be a substitute for the at-fault driver’s liability insurance.

Uninsured Motorist Bodily Injury vs. Other Insurance

As a coverage option, UMBI somewhat overlaps with health insurance, disability insurance, MedPay, and PIP. However, UMBI often has higher limits than MedPay and PIP, and it does not require the copays or deductibles that come with health insurance.

Uninsured motorist bodily injury is also an inexpensive coverage option since it usually costs about 5% of your total annual premium.

A collision deductible waiver helps drivers save money on their deductible after an accident with an uninsured driver. Collision damage waivers typically apply only to accidents where an identified driver without insurance is completely at fault. A notable exception is California, where collision deductible waivers can be used in hit-and-run accidents. … read full answer

When a Collision Deductible Waiver Is a Good Idea

Collision deductible waivers are similar to uninsured motorist property damage (UMPD) insurance, so a waiver is usually redundant if you are already required by your state to have UMPD. In states where UMPD is optional or unavailable, collision deductible waivers can be a great alternative for the same type of coverage. However, keep in mind that you cannot purchase a collision deductible waiver without collision insurance.

Collision Deductible Waiver Cost

The cost of a collision deductible waiver is usually less than $50 for your entire policy term. Although collision deductible waivers can only be used in a limited number of situations, their low cost means they are a good investment if you want to avoid any out-of-pocket expenses in the event that you’re hit by an uninsured motorist.

Finally, it should be noted that collision deductible waivers are different from collision damage waivers, which are sold by rental car companies to cover damage to their vehicles.

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.… read full answer

Uninsured motorist coverage costs around $50 to $70 annually for both bodily injury and property damage coverage. Considering how affordable it is, it’s almost always worth the investment.

States That Require Uninsured Motorist Coverage

• Connecticut
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Hampshire
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• Virginia
• West Virginia
• Wisconsin

Note: Uninsured motorist coverage is also required in the District of Columbia.

If you live in an area that has a high percentage of uninsured drivers, it is especially important to protect yourself. Mississippi has the highest rate of uninsured drivers, at 29.4%, while the state with the lowest uninsured-driver rate is New Jersey, at only 3.1%. Remember that your standard liability insurance will not protect you in an accident with an uninsured motorist.

However, there are some instances where uninsured motorist insurance may not be necessary. Several other types of coverage can offer protection in any accident, regardless of whether the other driver has insurance.

You May Not Need Uninsured Motorist Coverage If:

• You have personal injury protection or MedPay to cover your medical costs regardless of fault.
• You have collision insurance to cover any accident-related vehicle damage.
• You can afford to pay out-of-pocket for your own injuries and property damage resulting from a serious accident.

Finally, it’s worth noting that uninsured motorist coverage is often combined with underinsured motorist insurance, which helps cover your accident-related expenses if the at-fault driver has insurance but not enough coverage to pay for your costs.

To learn more, check out WalletHub’s guide to uninsured motorist coverage.