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. Seven 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 uninsured motorist property damage insurance up to the same limits as their property damage liability policy.
UMPD can only be used when the policyholder is not at-fault. In some states, the at-fault driver must be identified in order for UMPD to apply. In others, uninsured motorist property damage coverage will pay for expenses resulting from a hit and run.
UMPD will usually also cover an accident caused by an underinsured driver. In this case, the policyholder would file a claim with their UMPD policy for expenses that exceeded the at-fault driver’s property damage liability limits.
Drivers who do not have uninsured motorist property damage coverage can file a collision claim if their car is damaged by an uninsured driver. Collision insurance pays to repair or replace the policyholder’s vehicle after an accident, regardless of fault. However, collision is usually more expensive to buy than UMPD, and it often has a higher deductible.
For more information, check out WalletHub’s guide to uninsured motorist coverage.
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