Does my car insurance cover damage caused by a driver who is uninsured or underinsured?

You wouldn’t drive your vehicle down the road without making sure that you have insurance in case you cause an accident or get caught in a hail storm. But just because you are protecting yourself and others by following car insurance requirements doesn’t mean that other drivers on the road are as responsible.

Does car insurance cover damage caused by a driver who is uninsured or underinsured? Let’s look at what happens when an uninsured or underinsured driver hits your car.

How Comprehensive and Collision Insurance Works With Uninsured Drivers

Read more: Does my car insurance cover damage caused by an uninsured driver if I have collision coverage?

Purchasing collision car insurance can help to protect you financially if you are involved in an accident and are at fault, or if you get into an accident in a no-fault state. Comprehensive car insurance provides coverage if your vehicle is damaged after hitting an animal or after a tree falls on your car.

However, if another driver causes an accident and doesn’t have auto insurance or doesn’t have sufficient coverage, you could be left covering the bill yourself.

Uninsured or Underinsured Drivers and Car Insurance

Say that another driver causes an accident but doesn’t have car insurance. Or, a vehicle hits you but drives away without stopping. You might be wondering whether your own car insurance will cover the damage.

In this case, you can file a car insurance claim with your own insurance company. However, you will need to pay your car insurance deductible, which means that you’ll still be facing a bill for an accident that wasn’t your fault.

If your auto insurance policy doesn’t have enough coverage for the damage and/or any medical expenses you and your passengers have accumulated, you may have to pay out of pocket for the remainder.

Uninsured/Underinsured Car Insurance Explained

To protect yourself against the financial costs of getting into an accident with a driver who doesn’t have insurance or doesn’t have sufficient coverage, you can add uninsured/underinsured motorist coverage to your existing policy. (For more information, read our “What happens if the other driver doesn’t have insurance?“).

Just as there are many different types of car insurance coverage, there are several types of uninsured/underinsured motorist insurance. Which state you live in will determine whether these types of insurance are combined in a single policy, or are kept separate.

The four types of uninsured/underinsured motorist coverage are:

• Uninsured motorist property damage: Also known as UMPD, this coverage pays for damage to your own vehicle after an accident with an uninsured driver.
• Underinsured motorist policy damage: Also known as UIMPD, this coverage pays for damage to your own vehicle after an accident with a driver who doesn’t have sufficient coverage of their own.
• Uninsured motorist bodily injury: Also known as UMBI, this coverage pays for medical bills for you and your passengers after an accident with an uninsured driver.
• Underinsured motorist bodily injury: Also known as UIMBI, this insurance coverage pays for medical bills for you and your passengers after an accident with a driver who doesn’t have sufficient coverage of their own.

An uninsured/underinsured motorist policy will include a combination of these types of coverage. Having all four types of coverage is the only way to protect yourself and your car/belongings in the event of an accident with a driver who is uninsured or lacks sufficient coverage.

If your policy doesn’t include all four types of coverage, you could be left paying for some of the damage out-of-pocket.

State Requirements for Underinsured Motorist Insurance

In some states, uninsured/underinsured car insurance is required for all drivers. Still, even if you live in a state that doesn’t require this type of coverage, it can still be a good investment. In 2019, an estimated 12.6 percent of drivers did not have auto insurance.

Having uninsured/underinsurance motorist coverage can help protect you financially if you get into an accident with a driver who isn’t insured or doesn’t have sufficient insurance to cover your injuries or the cost to repair your vehicle.

Case Studies: Exploring Damages Caused by Uninsured or Underinsured Drivers

Case Study 1: John’s Uninsured Driver Experience

John is a responsible driver with comprehensive car insurance. One day, while he was waiting at a red light, his car was rear-ended by a driver who fled the scene. John later discovered that the driver was uninsured.

Having uninsured motorist coverage can be invaluable in situations where an uninsured or underinsured driver causes damage to your vehicle. It helps ensure that you are not left with significant financial burdens due to someone else’s negligence.

Case Study 2: Sarah’s Underinsured Driver Dilemma

Sarah owns a high-end luxury car and has a standard car insurance policy. One day, she is involved in a severe collision with a driver who is found to be at fault. However, the at-fault driver’s insurance policy has low coverage limits, which are insufficient to cover the full extent of the damages to Sarah’s vehicle.

Even when the at-fault driver has insurance, it’s essential to consider the coverage limits. If you own an expensive vehicle or want additional protection, underinsured motorist coverage can help bridge the gap between the other driver’s policy limits and the actual cost of repairs, ensuring you don’t bear the financial burden.

Case Study 3: Mark’s Unfortunate Encounter With an Uninsured Driver

Mark is driving home from work when an uninsured driver suddenly veers into his lane and collides with his car. Mark is aware that his car insurance policy doesn’t include uninsured motorist coverage, leaving him concerned about the potential financial repercussions.

This case demonstrates the importance of reviewing and understanding your car insurance policy’s coverage options. By adding uninsured motorist coverage, you can protect yourself against financial loss in situations where an uninsured or underinsured driver causes damage to your vehicle. Failing to include such coverage can leave you vulnerable to substantial out-of-pocket expenses.