The key difference between UMPD and collision coverage is that UMPD only covers damage to your vehicle caused by a driver with little or no insurance. By contrast, collision coverage applies to any damage to your vehicle caused by a collision with another vehicle or object, regardless of fault. If the driver does have insurance, but it doesn't cover all your medical and vehicle repair expenses, insurance for underinsured motorists (UIM) covers the gaps. Uninsured motorist property damage (UMPD) is a type of car insurance that pays for damage to your car or other property if a driver does not have car insurance and damages them.
This type of coverage is an auto insurance requirement in some states, optional in several states, and isn't available in about half of the states. The first number represents the amount an insurer will pay for each person's injuries if an uninsured driver crashes into their car. Property damage insurance for uninsured motorists is often taken out in conjunction with property damage insurance for underinsured motorists, which applies when the at-fault driver is insured but does not have enough liability insurance to cover the policyholder's expenses. Non-cumulative insurance refers to limits of auto insurance coverage that cannot be combined between vehicles or policies.
If your state doesn't require you to have coverage for uninsured drivers, then you should take out collision insurance, as it covers you after any accident, regardless of the other driver's insurance. For example, collision insurance will pay for the repair or replacement of your car after an accident, even when the other driver is not insured. Uninsured motorist coverage is an affordable policy option that generally only adds about 5% to the annual auto insurance premium. Quote car insurance online or call 1-866-749-7436 to make sure you have the right coverage to protect against uninsured or underinsured drivers.
Similarly, underinsured motorist insurance applies when the at-fault driver has insurance but not enough to cover the policyholder's bills. You can file a claim against your car collision coverage when your car is hit by an uninsured driver or in other situations that involve a collision, such as a single car accident. In New Hampshire, auto insurance is one of several ways to demonstrate financial responsibility, but if purchased, the state requires that both coverage for uninsured and underinsured drivers be included in all policies. Collision insurance can be used to repair or replace the policyholder's vehicle after any accident, regardless of fault, while uninsured motorist insurance only applies if an uninsured driver was at fault.
Yes, you need coverage for uninsured drivers if you have health insurance and you live in one of the 22 states where insurance for uninsured drivers is required. All drivers in Illinois must have collision insurance with minimal financial coverage for bodily injuries that a car accident can cause.