Definition
Uninsured Motorist Insurance (UMI) is an automobile insurance policy feature designed to provide coverage for policyholders and their family members if they are injured in a car accident caused by a hit-and-run driver or a motorist without liability insurance. This provision ensures that the victim’s medical expenses and other costs are covered when the responsible party is unable or unwilling to pay due to lack of insurance.
Examples
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Example 1: A driver is rear-ended at a stoplight by another motorist who then flees the scene. The fleeing driver is not identified, and hence, their insurance status is unknown. The injured driver can claim expenses under their uninsured motorist insurance for medical bills and car repairs.
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Example 2: A policyholder is hit by a driver who later admits he doesn’t carry any liability insurance. Due to the lack of coverage by the at-fault driver, the policyholder’s uninsured motorist insurance kicks in to cover the ensuing medical expenses and damages.
Frequently Asked Questions (FAQs)
1. What is covered under uninsured motorist insurance? Uninsured Motorist Insurance typically covers medical expenses, lost wages, pain and suffering, and sometimes property damage. It ensures protection when an at-fault driver cannot cover costs due to lack of insurance.
2. Is uninsured motorist insurance mandatory? In some states, uninsured motorist coverage is mandatory, while in others, it is optional. Even in states where it’s not required, it’s strongly recommended to provide a safety net against uninsured drivers.
3. How does uninsured motorist insurance differ from underinsured motorist insurance? While uninsured motorist insurance covers incidents involving drivers with no insurance, underinsured motorist insurance applies when the at-fault driver’s insurance is insufficient to cover the full extent of damages.
4. Can I be covered if the accident occurs while I am a pedestrian? Yes, many uninsured motorist policies also cover injuries if the policyholder or family members are struck by an uninsured driver while walking, cycling, or using public transportation.
5. What’s the process to file a claim under uninsured motorist coverage? The claim process involves notifying your insurance company about the accident, providing details and documentation, such as police reports and medical records, and working with an adjuster assigned by your insurer.
Related Terms
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Liability Insurance: Coverage that pays for bodily injury and property damage that a policyholder legally causes to others.
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Hit-and-Run Accident: A traffic accident where at least one involved driver leaves the scene without providing contact or insurance information.
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Underinsured Motorist Insurance (UIM): Provides coverage when an at-fault driver doesn’t carry enough insurance to cover the damages or injuries they caused.
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Personal Injury Protection (PIP): A portion of car insurance that covers medical expenses and, in some cases, lost wages and other damages.
Online References
- National Association of Insurance Commissioners (NAIC)
- Insurance Information Institute (III)
- US Department of Transportation - National Highway Traffic Safety Administration (NHTSA)
Suggested Books for Further Studies
- “Understanding Automobile Insurance” by Benjamin J. Van Hecke
- “Auto Insurance Simplified: How To Make Sure You’re Properly Covered without Overpaying” by Kiki Moretini
- “Insurance Handbook for the Medical Office” by Marilyn Fordney
Fundamentals of Uninsured Motorist Insurance: Insurance Basics Quiz
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