What Uninsured Motorist Insurance Covers and Doesn't Cover

When researching motorist insurance coverage, many drivers neglect material regarding uninsured motorist insurance. This type of car insurance is often confused with underinsured motorist insurance. In the event of an accident, underinsured motorist insurance covers drivers when their insurance falls short of covering the total cost of the accident, if they are at fault. Quite often, if drivers are economically strapped they tend to purchase the minimum required amount of insurance. Underinsured motorist insurance plans fill in the gap between the amounts their insurance covers and the actual amount it took to make you whole. Uninsured motorists do not carry the required car insurance at all.

What Uninsured Motorist Insurance Covers

Uninsured motorist insurance can cover either bodily injury liability or property damage, as is the case with most insurance companies. In this event, you will need to purchase bodily injury separately. On rare occasions, you will find an insurance carrier that includes both property damage and bodily injury under their uninsured motorist policy. Property damage liability insurance covers damage to your vehicle if an uninsured driver is found to be at fault in causing the accident. On the other hand, if you are found guilty of causing the accident, your insurance will have to cover the damages and your premiums will likely go up. Property damage insurance also covers damage to other property such as a home or a fence, if the other driver falls short of taking care of the monetary costs to repair or replace damaged property. In the event that you are injured to the extent that you are unable to work, this insurance will also pay you for the missed time in accordance with the terms of your policy.

What Uninsured Motorist Insurance Does Not Cover

There are items that uninsured motorist insurance does not cover. If you get into an accident and you are operating the vehicle as a taxi for pay, delivering for a fee or transporting goods for pay, this insurance will not cover your losses in the event that the at-fault driver is uninsured. You must purchase a special insurance specifically written to cover these activities. If the accident caused damage to your sound equipment or any other piece of equipment, that is not a permanently installed or affixed to the vehicle, you may also be out of luck in this situation. Some uninsured motorist policies exclude personal property damage altogether. You will not be covered if you are involved in an accident while you are leasing a vehicle for more than 6 months. You will not be covered if you settle with the at-fault driver's insurance carrier.

Uninsured motorist insurance coverage will vary between the insurance carriers, so you should review your policy carefully. If you are unsure of the interpretation of a clause or the language used in your policy, you should consult your insurance agent or an attorney. Doing your homework will forestall feature headaches and pay off in the end.