UMPD is uninsured motorist property damage insurance, which is a type of car insurance that protects the policyholder from property damage caused by an uninsured driver. UMPD pays for damage to the policyholder’s car as well as other stationary objects they own, including their home.
UMPD only applies to accidents caused by an uninsured driver.
UMPD covers damage done to the policyholder’s property like their car, fence or mailbox.
If you want protection against damage to your car, regardless of fault, you should consider purchasing collision insurance. However, collision insurance will only cover your vehicle and will not cover damage to other property.
It is better to have collision insurance because it applies in more situations than uninsured motorist coverage. Collision insurance can be used to repair or replace the policyholder’s vehicle after any accident, regardless of fault, while uninsured motorist insurance only applies if an uninsured driver was at fault. But unlike collision insurance, uninsured motorist coverage can be used to cover a policyholder’s medical expenses, so it’s still a worthwhile investment even if you already have collision coverage.… read full answer
Collision vs. Uninsured Motorist Insurance
Type of Insurance
When Does It Apply?
Your vehicle is damaged in an accident
You are injured or your vehicle is damaged in an accident caused by an uninsured motorist
What Does It Cover?
Cost of repairing or replacing your vehicle
Cost of repairing or replacing your vehicle AND medical expenses, depending on the type of uninsured motorist coverage
Is It Required by Law?
No, but a lender may require it for a leased or financed vehicle
Yes, by law in nearly half the states
Is There a Deductible?
Yes, depending on the type of uninsured motorist coverage and the state
When to Purchase Collision or Uninsured Motorist Coverage
If your state doesn’t require you to have uninsured motorist coverage, then you should purchase collision insurance because it covers you after any accident, regardless of the other driver’s insurance. But ideally, you should purchase both types of coverage, because they apply to different situations and don’t always have a clear overlap. Specifically, collision insurance only overlaps with one type of uninsured motorist coverage.
There are two types uninsured motorist coverage: bodily injury (UMBI) and property damage (UMPD). In just over half the states, you can only purchase UMBI, which pays for your medical bills if you’re hit by an uninsured motorist. UMBI does not overlap at all with collision insurance, so you should still consider getting it unless you have similar coverage through personal injury protection or medical payments coverage.
In the remaining states, uninsured motorist policies include both UMBI and UMPD, which pays for vehicle repairs after an accident with an uninsured driver. Collision insurance does overlap with UMPD, but UMPD can’t be used unless the other driver is uninsured. As a result, you should still purchase collision insurance even if you have UMPD.
Uninsured motorist insurance covers the same things as standard liability insurance: medical expenses and property damage after an accident. The main differences are that UM pays you (rather than other drivers in accidents you cause) and can only be used for accidents caused by a driver who does not have insurance.… read full answer
What Uninsured Motorist Insurance Covers
The policyholder’s medical expenses
Other drivers’ medical expenses
Damage to the policyholder’s vehicle
Other drivers’ property damage
Damage to the policyholder’s stationary property (e.g. house or fence)
The policyholder’s expenses if they are at-fault for the accident
Like liability insurance, uninsured motorist coverage will only pay up to the policy’s limits. It is best to have uninsured motorist coverage limits that match the limits of your liability insurance policy, though higher limits are sometimes available.
Also, if you get into an accident caused by a driver who has insurance but not high enough limits to cover all of your vehicle damage and medical costs, you’d need to use underinsured motorist coverage instead.
It is worth getting uninsured motorist insurance if you can afford it and don’t already have similar types of coverage. Uninsured motorist (UM) coverage pays for your medical expenses and vehicle repairs if you’re hit by an uninsured driver, and it’s required in several states. But considering how cheap UM insurance is, it’s usually worth purchasing even if it’s not required.… read full answer
On average, uninsured motorist insurance only costs about $50-$75 per year. By comparison, a severe accident caused by an uninsured motorist could cost you thousands in repair costs and medical bills. As a result, uninsured motorist coverage is a worthwhile investment in order to protect yourself from the financial fallout of a wreck.
When You May Not Need Uninsured Motorist Insurance
You may not need uninsured motorist insurance if you already have overlapping coverage. For example, collision insurance will pay to repair or replace your car after any accident, including when the other driver is uninsured. Similarly, personal injury protection (PIP) and medical payments (MedPay) coverage will pay for your medical expenses after an accident with an uninsured motorist.
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