Uninsured and underinsured motorist coverage

Around 14% of all drivers have no auto insurance coverage. 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.

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 byan underinsured motor vehicle (that is, a vehicle which is insured, but at an amount thatis less than your uninsured motorist bodily injury (UMBI) limits).

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

• 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.

I recommend Comparison Market. I like to know I am getting the better coverage and lower rates, and their online interface features multiple rates. I can also change coverage limits, deductibles, add or subtract drivers and cars easily to see how it affects my rates.