Uninsured Motorists Coverages

A Personal Auto policy provides Uninsured Motorists (UM) Coverage. The coverage indemnifies the insured for bodily injury only as a result of an accident with a liable uninsured motorist. Only compensatory damages are covered, punitive damages are specifically excluded.

Some states offer property damage in addition to bodily injury coverage. This is done by adding an endorsement to the policy. Before the insured can be indemnified, four conditions must be met:

1. The loss must be caused by an auto accident and involve bodily injury
2. The loss must be sustained by the insured
3. The insured must be legally liable to recover bodily injury (BI) damages
4. The other vehicle must meet the definition of an uninsured vehicle

Definition Of Uninsured Motor Vehicle

• The vehicle has no Liability coverage at the time of the accident
• Has Liability coverage, but not enough to meet the states financial requirements
• Is operated by a hit and run driver who cannot be identified who strikes an insured or a family member
• Has invalid Liability coverage at the time of the accident because the insurer is insolvent or denies coverage       

Who Is Insured     

• The named insured and family members
• Anyone occupying the named insured's covered auto
• An person entitled to recover damages because of BI caused by an uninsured motorist to the named insured, family members or passengers in the covered auto  

 Note:  Under Uninsured Motorists coverage, the insured is required to notify the police promptly if a hit-and-run driver is involved. Under Physical Damage Coverage, the insured must take reasonable steps after the loss to protect a covered auto and its equipment from further damage. Reasonable expenses required to do so will be reimbursed. In addition, the police must be notified if the car is stolen.  

Under insured Motorists Coverage

Under insured Motorist Coverage fills the Liability gap. In general terms, Under insured coverage pays the difference between the insured's actual damages for bodily injury and the amount of Liability insurance carried by the driver who was at fault, up to the limits of the insured's Under insured Motorists coverage.

Under insured Motorists coverage is subject to state law, being mandatory in some states and optional in others. It is added to the Personal Auto policy by endorsement.