There are other clauses in your insurance policy that are imperative to include so that you are properly insured. Many of our clients have asked us what is uninsured motorist insurance? An uninsured motorist clause is an additional clause in an auto insurance policy that covers damages received from an uninsured driver. So, if you get into an accident and the other driver does not have insurance, your policy will pay for damages for you and your passengers up to the limits outlined in the contract. You will also be covered if you are the victim of a hit and run accident.
In the event of an auto accident, uninsured motorist (UM) coverage – also called uninsured motorist bodily injury (UMBI) insurance – will cover you and your passengers for medical expenses pain and suffering or lost wages.
Most of the states require every driver to have uninsured motorist coverage of at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury and $10,000 per accident for property. Although the states require minimum coverage, it may not be enough. In the event of a qualifying accident, the insurance company pays the difference between what the uninsured driver can pay and what the injured driver would be entitled to as if the uninsured motorist had proper insurance.
In most cases, your UM coverage will come in a split limit, meaning your insurance coverage will differ if there is one person injured versus if there are multiple people injured. For example, a split limit might be $15,000 for bodily injury or death, per person. $30,000 for total bodily injury or death, per accident. You may instead be able to purchase a combined single limit policy, which is one amount that your insurance company will pay out for all bodily injury in an accident (e.g., $30,000 for all injuries).
In addition to paying for damages to your vehicle, uninsured motorist property damage coverage may also cover damage to other personal property. Examples of personal property that may be covered when damaged include your house, your fence, or other personal items, such as your laptop or cell phone.
Pathak Insurance can offer personal advice about product availability in Virginia and how much coverage is right for you.