Understanding Uninsured and Underinsured Motorist Coverage

At Eagle Insurance, we understand that navigating the world of auto insurance can be daunting. As your trusted independent insurance agency serving Rhode Island and the greater New England area, we aim to simplify these complexities. Today, we're focusing on uninsured and underinsured motorist coverage—an important aspect of your auto insurance policy that provides protection when you need it most.

What is Uninsured and Underinsured Motorist Coverage?

Uninsured and underinsured motorist coverage is designed to protect you in the event of an accident where the at-fault driver either lacks sufficient insurance or has no insurance at all. This type of coverage helps ensure that you are not left to bear the financial burden of an accident caused by someone else’s negligence.

What Does This Coverage Typically Include?

• Uninsured Motorist Bodily Injury Coverage (UMBI): This helps pay for medical expenses, lost wages, and other damages if you’re injured in an accident caused by a driver who doesn't have insurance.

• Uninsured Motorist Property Damage Coverage (UMPD): This helps pay for damage to your vehicle or other property if you're hit by an uninsured driver. Note that UMPD is not available in all states.

• Underinsured Motorist Bodily Injury Coverage (UIMBI): This steps in when the at-fault driver’s insurance limits are too low to cover all your medical expenses and other related costs.

• Underinsured Motorist Property Damage Coverage (UIMPD): Similar to UMPD, this helps cover the repair or replacement costs for your vehicle if the at-fault driver’s insurance isn’t sufficient to cover the damages.

How Does It Work?

If you're involved in an accident with an uninsured or underinsured driver, your UM or UIM coverage will activate. Typically, you would file a claim with your own insurance company, which then seeks reimbursement from the at-fault driver if possible. This process intends to ensure that you receive the necessary funds to cover medical expenses, property damage, and other associated costs without enduring lengthy legal battles.

Typical Costs

The cost of adding uninsured and underinsured motorist coverage to your policy can vary based on several factors, including your driving history, location, and the limits you choose. Generally, these costs are relatively affordable. For example, in Rhode Island, adding UM/UIM coverage might range from $50 to $150 annually, depending on the specifics of your policy.

Key Points

• Protection Against Uninsured Drivers: UMBI and UMPD help protect you if you're hit by a driver without insurance, covering medical expenses and property damage, respectively.

• Gap Coverage for Underinsured Drivers: UIMBI and UIMPD help bridge the gap when the at-fault driver’s insurance isn’t enough to cover all your expenses.

• Affordability: Typically, adding UM/UIM coverage is an affordable way to enhance your auto insurance policy.

• State-Specific Rules: Be aware of your state’s requirements and options for stacking coverage.

Important Caveats

• State Requirements: Some states mandate uninsured motorist coverage, while others do not. It’s important to know your state's requirements.

• Coverage Limits: Ensure that your UM/UIM coverage limits are adequate to protect you in case of a serious accident. Low coverage limits might not fully cover your expenses.

• Property Damage Coverage Availability: UMPD and UIMPD might not be available in all states, so check with your Eagle Agent.

 At Eagle Insurance, we're all about making sure you understand your coverage and are feeling confident on the road. Uninsured and underinsured motorist coverage is a key part of your auto insurance policy that can save you from major headaches and unexpected expenses if you ever find yourself in an accident with an uninsured or underinsured driver. Understanding and adding UMBI, UMPD, UIMBI, and UIMPD to your policy ensures you're not left footing the bill for someone else's mistake. Remember, we're here to make insurance simple and stress-free. If you have any questions or need help finding the right coverage, get in touch with an Eagle Agent today! Our friendly team is always ready to help you navigate your options.