While you are the road, you might encounter drivers who get into vehicular accidents with no auto insurance policy or drivers who do own an auto insurance policy only that their insurance policy is too low to pay for the damages they may have inflicted in an accident that is caused by them. These motorists are then called uninsured motorists if they do not have any car insurance policy and underinsured motorists if they own an insufficient insurance coverage.
Uninsured and underinsured motorist coverage or UM are types of insurance policies which are divided into four under types. Each of these subtypes cover different aspects in a vehicular accident caused by an uninsured or an underinsured driver. To understand the differences of each subtype, let us study each of them a little further.
The first UM subtype is known as the uninsured motorist bodily injury. This car insurance policy covers the policy holder, his passengers or any other member of his household that is under his car insurance policy from medical or death expenses from an accident wherein the one at fault is a driver who is not covered by any auto insurance policy.
Next, there is the underinsured motorist bodily injury or the UNDUM. This UM subtype is basically like the uninsured motorist bodily injury wherein the policy holder, his passengers and any other member of his household under his car insurance policy is covered from medical or death expenses from an accident caused by another driver. However, the difference between the UNDUM and the uninsured motorist bodily injury is that under this insurance policy the driver at fault is covered. The only problem is that his insurance coverage is not enough to pay for the entire medical billings. The insurance of the driver at fault would be utilized and the remaining balance would be met by the other party’s insurance coverage.
Then there is the uninsured motorist property damage or the UMPD. This insurance policy covers for any property damaged by a motorist with no insurance policy.
Finally, the last UM subtype is the underinsured motorist property damage which covers for any property damaged by a driver with an insufficient liability insurance coverage.
A lot of people think that getting an auto insurance policy is a complete waste of money even if the state already requires it. What these people do not know is that they risk their financial status more. Car insurance policies help you more than you know. Without it you might end up paying for a really serious car accident or the state might suspend or revoke your license, capture your car and put you in jail for some time.