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Here's how your uninsured/underinsured motorist coverage works
You're in an accident. And, you're shocked to discover the driver at fault doesn't have car insurance. Now what?
While nearly every state requires auto insurance coverage, it's no guarantee that every driver is covered. Some drivers don't have car insurance. Others don't have enough to cover the cost of medical expenses, lost wages or pain and suffering caused by an accident.
In fact, in the United States, about 1 in 8 drivers are without car insurance, according to the Insurance Research Council. So, what happens if you are involved in an accident with a driver who does not have car insurance coverage or enough of it? That's where Uninsured/Underinsured Motorist (UM/UIM) coverage comes in.
Uninsured motorist coverage
If you are involved in an accident with an individual who owns or operates an automobile without liability insurance, Uninsured Motorist coverage may compensate you for damages for which you may be legally entitled to collect from that driver. These benefits may include payment for certain medical expenses, lost wages, and pain and suffering — subject to your policy's limits and conditions.
Underinsured motorist coverage
Likewise, Underinsured Motorist coverage helps if you are involved in an accident with an individual whose coverage limits are less than the damages you sustain in a covered loss. Underinsured Motorist coverage may compensate you for injuries for which you may be legally entitled to collect from that driver, within the limits of your policy.
Your existing Uninsured Motorist coverage and Underinsured Motorist coverage selections and limits are listed on your declaration page. Contact us if you'd like help reviewing them or adjusting your coverage. Insurance coverage varies by region or state. Certain restrictions and limitations apply.
Sources
- Corum, David. "New Study Reveals a Declining Trend in the Percentage of Uninsured Motorists." Insurance-research.org. The Insurance Research Council, 5 Aug. 2014. Web. 3 Dec. 2014. http://www.insurance-research.org/sites/default/files/downloads/IRC%20UM_NewsRelease_1.pdf.
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American Family Insurance is our brand name. Auto policies are underwritten by American Family Connect Property and Casualty Insurance Company, American Family Connect Insurance Company, or Midvale Indemnity Company, Madison, WI. Property policies are underwritten by Homesite Indemnity Company, Homesite Insurance Company, Homesite Insurance Company of California, Homesite Insurance Company of Florida, Homesite Insurance Company of Georgia, Homesite Insurance Company of Illinois, Homesite Insurance Company of New York, Homesite Insurance Company of the Midwest or Homesite Lloyd's of Texas, Boston, MA. American Family Connect Insurance Agency, Inc., places policies with related and unrelated companies. In Texas, certain property coverages may be underwritten by Ranchers & Farmers Mutual Insurance Company. Each company has sole financial responsibility for its products. Products, pricing, discounts, benefits, and availability vary by state and may be subject to change. Exclusions apply.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.
Costco Insurance Agency, Inc. is not licensed in New York state. Insurance products are not obtained through the Costco Insurance Agency, Inc. in New York. Costco Wholesale, Costco Insurance Agency, Inc. and its subsidiaries do not underwrite insurance, pay claims or guarantee any of the products or services. Costco Insurance Agency, Inc. (CIA), a licensed insurance agent, may receive compensation.
This article is for informational purposes only and based on information that is widely available. We do not make any guarantees or promise any results based on this information. We are not responsible for the content of any third-party sites that may be linked in this article. This article does not afford, offer, or guarantee any coverage.