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Uninsured motorist coverage and underinsured motorist coverage pay for your medical bills and other damages if another driver hits you and they don’t have any or enough bodily injury liability ...
Uninsured/underinsured motorist bodily injury (UM/UIM BI). Protects you if you're hit by a driver who either has no insurance or insufficient coverage to pay for your medical costs.
Uninsured/underinsured motorist coverage. Protects you if you're hit by a driver who either has no insurance or whose liability coverage limits are too low to pay for your damages.
Typically, the payout is not more than the minimum liability limits and the negligent driver remains responsible for reimbursing the state's fund. In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws. In some states it is mandatory.
The insurance company will ordinarily pay the judgment, up to the policy limits, once a court determines that an uninsured motorist was at fault. Some states' laws also allow additional insurance coverage to the insured policyholder through policy stacking provisions, whereby a claim may be made against multiple uninsured motorist policies.
For instance, if your car's value has dropped to $25,000 but you still owe $30,000 on your loan, gap insurance would cover that $5,000 difference if your car is totaled or stolen.
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Learn how deductibles can affect your car insurance price and out-of-pocket costs. ... If you have a car loan or lease, most vehicle financing agreements require a maximum deductible for collision ...