Automobile Uninsured / Underinsured Motorist

The purpose of Uninsured/Underinsured Motorist coverage is to protect you from financially irresponsible people who, despite state laws and regulations, have not purchased automobile liability insurance and who do not have the financial capability to compensate you out-of-pocket in an auto accident.

Uninsured/Underinsured Motorist insurance only applies if a driver that doesn't have insurance (uninsured) or has too little insurance (underinsured) hits you and causes bodily injury or property damage. If you hit a driver that is uninsured, the liability portion of your policy kicks in. If you want to make a claim under Uninsured Motorist, you must demonstrate that the uninsured motorist was at fault.

If the uninsured motorist is deemed at-fault, then your Uninsured Motorist insurance acts like liability insurance for the uninsured driver, protecting you and your property against compensatory damages. Compensatory damages caused by the uninsured cover you for property as well as bodily injury sustained, whether it be tangible (doctors' bills, hospital bills, etc.) or intangible (pain and suffering, disfigurement, etc.). Just like Liability coverage, Uninsured/ Underinsured Motorist often has three separate maximum payout limits. An example is below.

• Uninsured Motorist: $25,000/$50,000/$25,000

The first number is the maximum amount your insurance will pay for bodily injury per person in an accident involving an uninsured motorist.

The second number is the maximum amount your insurance will pay for bodily injury in any one accident.

The third number is the maximum amount your insurance will pay for any property damage incurred.

Some states (such as Utah for example) will separate Uninsured and Underinsured Motorist into two separate categories. Although they are separate, it is always smart to make sure you are covered for both types of irresponsible motorists.