Specific options for uninsured motorist coverage vary by state and insurer, but in general there are three types of protection:
- Uninsured Motorist (UM) Insurance—Also known as Uninsured Motorist Bodily Injury (UMBI) insurance, this coverage will pay your and your passengers’ medical bills if you’re involved in an accident with an uninsured motorist who is at fault. In addition, UM insurance will reimburse you and your passengers for lost wages. UM coverage also kicks in if you are hit as a pedestrian by an uninsured driver, or if you’re the victim of a hit-and-run accident.
- Uninsured Motorist Property Damage (UMPD) Coverage—While UM insurance covers injuries, it does not extend to damage to your car or property. For this, you need UMPD coverage. UMPD covers damage to your car less a $250 deductible.
- Underinsured Motorist (UIM) Protection—In some instances, an at-fault driver may have liability insurance, but the policy’s limits do not cover the full extent of damage to your vehicle. In such cases, UIM insurance will cover the shortfall.
In Texas millions of drivers are on the road without auto insurance and many millions more are without the proper limits of coverage. That is why it is important for you to protect your family with uninsured and underinsured motorist coverage.