Uninsured/Underinsured Coverage

Let’s say you’re in car accident. Fortunately, no one’s hurt. But your car is wrecked.

The accident wasn’t your fault… so the other driver has to pay your damages, right?

Yes No

Technically, yes. But what if the other guy was driving around without auto insurance? Or only had the bare minimum coverage needed to be on the road legally? You could take the other driver to court, and you’d probably win. But you can’t get money out of people if they don’t have any.

Uninsured/underinsured coverage will cover your damages if the at-fault driver can’t pay up. It lets you stay protected, instead of hoping that the other guy has plenty of coverage — because plenty of people on the road don’t.

There are two kinds of uninsured/underinsured coverage:

• Coverage for bodily injury. This covers you if an uninsured or underinsured driver injures you or one of your passengers.

• Coverage for property damage. This covers you if an uninsured or underinsured driver damages your car.

Don’t confuse uninsured/underinsured coverage for bodily harm with Personal Injury Protection. Personal Injury Protection, or PIP, pays for your medical bills if you get in an accident. PIP coverage can be expensive. And if you have health insurance, you may not need it. But in states with no-fault laws, it’s often required.

So should you have coverage to protect you from uninsured and underinsured drivers? Many insurance experts think it’s among the most important kinds you can buy. And in many states, you’re required by law to have it.

To make sense of all your options, work with an insurance agent. You can use our free online quote service to get matched with multiple agents. They’ll answer your questions and make you offers, so you can choose the kind of coverage that’s right for your situation.