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Uninsured Motorist Coverage

At least 14% of all drivers have no auto insurance coverage. It's probably well over 20% in states that have a large illegal immigrant population. Uninsured / underinsured motorist portions of your coverage are very important parts of your policy and you should always carry the same limits as your liability coverage. The rates are very low.

If you're injured in an accident caused by an uninsured or underinsured drivers, and do not have uninsured /underinsured motorist coverage, you won't be compensated. And unlike medical coverage (PIP), uninsured and underinsured motorist coverage will compensate you for pain and suffering along with out-of-pocket expense of your injuries.

Uninsured / underinsured motorist coverage provides liability insurance when the party at fault does not have the state required minimum liability coverage, or the minimum liability coverage is insufficient to cover the injuries sustained in the accident. Likewise, uninsured motorist property damage covers possible reimbursement for damages your car sustains, property damage (PD) and bodily injuries (BI).

Underinsured Motorist Coverage - Pays for bodily injury or wrongful death caused by an underinsured motor vehicle (that is, a vehicle which is insured, but at an amount that is less than your uninsured motorist bodily injury (UMBI) limits).

Uninsured Motorist Coverage (UMC) - Provides coverage for a policyholder involved in a collision with a driver who does not have liability insurance. UMC comes in two parts:

• UMBI and uninsured motorist property damage (UMPD). UMBI coverage pays for injuries to you or any person in your car when there is a collision with an uninsured driver.
• UMPD coverage pays for the property damage to your car when there is a collision with an identified uninsured driver.

The amount covered by underinsured motorist bodily injury is capped at the limit you choose when you buy your auto insurance policy, so make your policy maximums as high as you can afford.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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