Uninsured motorist coverage is an affordable policy option that generally only adds about 5% to the annual auto insurance premium. For example, collision insurance will pay for the repair or replacement of your car after an accident, even when the other driver is not insured. The problem arises when the at-fault driver does not have insurance (does not have insurance) or that insurance is not sufficient to cover their damages (with insufficient insurance). 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.
Uninsured motorist coverage is a type of car insurance that protects you after an accident caused by a driver who doesn't have liability insurance. But what if the at-fault driver's liability insurance coverage isn't enough to compensate them for their losses? Worse yet, what if the at-fault driver doesn't have any liability insurance? Unless you have uninsured (“UM”) or underinsured (“UIM”) motorist coverage, depending on the facts of the accident, you may have to pay for those losses out of pocket. If your state doesn't require you to have coverage for uninsured drivers, then you should take out collision insurance, as it covers you after any accident, regardless of the other driver's insurance. Property damage insurance for uninsured motorists is often taken out in conjunction with property damage insurance for underinsured motorists, which applies when the at-fault driver is insured but does not have enough liability insurance to cover the policyholder's expenses.
Non-cumulative insurance refers to limits of auto insurance coverage that cannot be combined between vehicles or policies. If the driver does have insurance, but it doesn't cover all your medical and vehicle repair expenses, insurance for underinsured motorists (UIM) covers the gaps. Ohio's financial responsibility law requires all motorists to purchase a minimum amount of auto insurance before operating a motor vehicle in the state. According to the Insurance Information Institute, approximately one in eight motorists across the country drives without insurance.
Uninsured motorist property damage (UMPD) is a type of car insurance that pays for damage to your car or other property if a driver does not have car insurance and damages them. Yes, you need coverage for uninsured drivers if you have health insurance and you live in one of the 22 states where insurance for uninsured drivers is required.