There are still drivers who do not posses car insurance or even underinsured. With the uninsured and underinsured motorist coverage, you can still receive payments for accidents caused by these drivers.
The uninsured motorist bodily injury or UM will cover you, other family members and your passengers that are insured if you will meet an accident, damages or death caused by an at-fault uninsured or hit-and-run driver. If it happened that you will get involved in an accident where the other driver in not insured, your policy will cover your medical expenses.
With this type of car insurance coverage, you will be paid up to the limit of your policy. This limit refers to the maximum bill that will be paid per person and per accident.
Another good thing for this kind of coverage is that individuals without health insurance can still receive benefit from the uninsured motorist bodily injury. Just make sure that the limit of your policy is adequate because if not, you will be still responsible for paying additional amount.
The other type of coverage is underinsured motorist bodily injury or UNDUM. This will cover you, your family members and passengers that are insured. This coverage will make you, family members and passengers receive benefits for injuries, damages and death caused by the carelessness of a driver with inadequate insurance.
The underinsured motorist bodily injury coverage will pay for the coverage which cannot be met the motorist at fault. It however depends on the limit of your policy. You will be covered, the other drivers covered by the policy and your passengers of the underinsured motorist bodily injury.
This coverage usually pays any difference between the other driver’s insurance cover and what your bodily injury coverage will pay. Just like the uninsured motorist bodily injury, the coverage limits refer to the maximum amount of bills that will be paid to every person and per accident. However, if your car insurance limits your purchase and does not meet all the accident’s cost; you will pay the excess amount.
The underinsured motorist bodily injury and uninsured motorist bodily injury coverage can be combined or sold separately. But it still depends per state and the insurance carrier. In some other states, these two coverages are mandatory.
You should purchase uninsured/underinsured motorist coverage to protect yourself against uninsured drivers. Just make sure that the policy you purchase is sufficient to pay all the cost of accidents.