What happens when the motorist who caused a collision with your vehicle doesn’t have car insurance?
What happens when they don’t have enough liability coverage to cover your medical expenses and lost wages? What about damage to your car?
What happens if someone collides with your vehicle, then speeds off — a hit and run?
This is why auto insurance coverage called uninsured and underinsured motorist coverage exists.
Read on to learn more about this essential type of coverage that can save you thousands if you’ve been hit by an un/underinsured motorist.
The Importance of Uninsured and Underinsured Motorist Coverage
To boil the definition of uninsured and underinsured motorist coverage down, you can think of it this way:
Normally, if another driver is at-fault for a collision that you are involved in, you can file a claim with that driver’s liability insurance to get your medical expenses and property damages paid for. After all, the accident wasn’t your fault, so you shouldn’t have to pay.
However, when the at-fault driver was not responsible and never purchased liability insurance in the first place (which is actually illegal) or did not purchase an adequate amount of insurance, you have limited options to recoup your damages.
Doesn’t seem fair?
We don’t think so either. No one does. Still, this is a scenario that Duluth and Cloquet area drivers should be prepared for.
The good news is, if you reside and drive in the area, you are required (as a Minnesota resident) to have a type of insurance called uninsured and underinsured motorist coverage (UM/UIM coverage). This protects you if you’re ever in an accident with an at-fault driver who doesn’t have enough insurance or any at all.
Not all states require that drivers have UM/UIM coverage, but real estate agents and legal professionals agree that they should. Fortunately, Minnesota is a state that does require it. This type of coverage protects millions of drivers from the possibility of being left in the lurch by an at-fault driver who is uninsured or underinsured.
What Exactly Will UM/UIM Insurance Cover?
All auto insurance policies are different. Therefore, we recommend that policyholders always speak directly with their insurance agents to see exactly what their UM/UIM policy covers.
Still, there are some general standards that usually apply.
In Minnesota, the required uninsured and underinsured insurance covers mostly medical and other injury-related expenses that a passenger might incur after an accident with an uninsured or underinsured motorist.
Does UM/UIM Insurance Cover Damage to Your Car?
No. Normally, damage to your vehicle would be covered under uninsured motorist property damage (UMPD) coverage, but this isn’t an offered type of coverage in Minnesota.
Does UM/UIM Insurance Cover Lost Wages?
Generally speaking, yes. If you experience injuries because of the actions of an uninsured or underinsured driver and you need to miss work or even leave your job completely as a result, your UM/UIM insurance coverage should cover your lost wages.
Does UM/UIM Insurance Cover Pain and Suffering?
Generally speaking, yes.
Pain and suffering is a legal term that refers to the physical and/or mental pain and suffering that results from being injured in an accident. These expenses are generally covered under most UM/UIM policies.
Speak to an Agent About Uninsured Motorist Coverage Today
Great Lakes Insurance in Cloquet and Duluth is here to help you find quality auto insurance that meets your needs.
If you have questions about uninsured motorist coverage or any other aspect of auto insurance, please don’t hesitate to get in touch with us.