Glossary
Uninsured motorist coverage, defined
Protection on your own auto policy that pays for your injuries, and in some states your vehicle damage, when the driver who hit you has no insurance or cannot be identified, as in a hit-and-run. It steps into the place the other driver's liability coverage should have taken.
In practice
It is written with its own limits, usually matched to your liability limits, and it is one of the least expensive coverages relative to what it does. Whether a carrier must offer it and whether you can reject it in writing is set by each state. Its companion, underinsured motorist coverage, pays when the other driver has some insurance but not enough.
A worked example
Suppose a driver runs a red light, hits you and has no insurance, and your medical bills are $40,000. With uninsured motorist limits of $50,000 per person, your own policy pays the bills. Without the coverage you would look to your health plan for treatment and to your own savings for everything else. Hypothetical figures.
Applies to: Auto Insurance