Though the majority of states in our nation have mandatory insurance laws, the Insurance Research Council estimates about one of every seven motorists is uninsured (about 14.3 percent). In some states, the percentage of uninsured motorists is as high as 28 percent. It is estimated that more than 20 percent of fatal crashes in the United States involve uninsured motorists (source: Property/Casualty Insurers Association of America).
In addition to a significant number of uninsured motorists, many drivers who are insured carry only the minimum limits. These limits are oftentimes inadequate to cover all damages in an accident for which these individuals (underinsured motorists) are at fault.
Uninsured/underinsured motorist (UM/UIM) coverage allows you to file a claim with your insurer if you are involved in an accident caused by someone who does not have adequate insurance to cover the damages. This coverage is not required in most states; however, it is something you should be familiar with and consider when purchasing auto insurance.
Because UM/UIM coverage does not cover damage to your vehicle, insurers in most states offer uninsured/underinsured motorist property damage insurance (UMPD). This will cover damage to your vehicle. The deductible for this coverage is often substantially less than the deductible for collision coverage in your auto insurance policy.
Specific coverage options for these policies vary by state, so it is a good idea to talk with your insurance agent to learn what options are available to you.
