Commercial Auto Uninsured & Underinsured Coverage
Uninsured motorist coverage is insurance that you can add to your commercial auto insurance policy to protect yourself against people who do not carry their own auto insurance. If you are involved in an auto accident and the other driver does not carry liability insurance – or they do not carry enough of it – your Uninsured Motorist coverage will protect you.
The amount of Uninsured motorist coverage you can get varies from one state to another. Some jurisdictions make this coverage mandatory while others limit the coverage options. Speak to one of our specialists to learn what is available for your company’s best protection levels.
Depending upon where you live and do business, there can be three different types of coverage for Uninsured Motorist coverage. All three may be bundled together as well.
- UM/UMBI – Uninsured Motorist insurance
- UIM – Underinsured Motorist insurance
- UMPD – Uninsured Motorist Property Damage insurance
Uninsured Motorist Insurance (UM)
Uninsured Motorist, UM, or Uninsured Motorist Bodily Injury, UMBI, is insurance coverage that pays medical or hospital bills for people who are injured in an accident. If the auto accident was caused by a person who does not have auto insurance, UM/UMBI will cover the medical expenses and related costs. This insurance also protects you and other passengers in your vehicle if you are victims of a hit-and-run accident.
UM or UMBI will pay for medical bills, lost wages, and pain and suffering for you and each other person in your vehicle.
Underinsured Motorist Insurance (UIM)
Sometimes a driver carries insurance that is not enough to cover the cost of damages they have inflicted. Underinsured Motorist (UIM) coverage protects you in these cases. It can pay medical bills and related costs for injuries sustained in an auto accident. This coverage protects you if the other driver is at fault and does not have enough insurance to pay for all of the bodily damages. Depending upon the state you live in, UIM may be included in the UM section of your insurance policy.
UIM all covers the medical bills for you and your passengers, plus pain and suffering and lost wages.
Uninsured Motorist Property Damage Insurance (UMPD)
When an uninsured motorist causes damages to your vehicle, you can protect yourself from the losses with Uninsured motorist property damage insurance, or UMPD. This coverage can sometimes protect you from damages caused by hit-and-run incidents. Depending upon the state you live in, your UMPD insurance may cover your personal property as well as the vehicle involved in the accident.
UMPD insurance coverage is not available in all states.
Who Needs Uninsured Motorist Insurance?
Some states mandate uninsured motorist coverage by law while others make it optional. You’ll need to speak with one of our small business insurance specialists to determine what the laws and regulations are for your state. We can also help you decide whether the coverage is a good choice for your company’s insurance needs.
Despite tough laws and regulations, almost 15 percent of drivers around the country still do not have basic liability auto insurance coverage. If an uninsured driver strikes your car and totals it, you would have to pay for replacement completely out of your own pocket. Likewise if an uninsured motorist causes bodily injuries and physical harm, you would have to pay all of the medical bills.
Drivers who don’t have enough insurance will provide you with minimal restitution, but because the amounts are not enough to cover damages or medical expenses you are still left with a large portion of the bills.
It is for these reasons that we strongly recommend all small businesses carry uninsured motorist insurance coverage on their commercial auto insurance policy, whether it is required by their state laws or not.
Choosing Uninsured and Underinsured Motorist insurance is one more way to protect yourself from financial hardships that are caused if someone else is at fault for an auto accident.
Limits And Other Details
Adding uninsured or underinsured motorist protection to your commercial auto insurance policy requires a few decisions. First you must select the coverage limits for your policy. Coverage limits are the maximum amount of money your policy will pay for damages caused by uninsured or underinsured drivers.
UM, UMBI, and UIM allow you to select split maximum coverage amounts or a combined single maximum coverage amount. Split maximums have two numbers: The first is the maximum your coverage will pay per person. The second is the maximum amount your coverage pays in total for a single accident.