Uninsured Motorist Coverage (UM)

Definition - What does Uninsured Motorist Coverage (UM) mean?

Uninsured motorist coverage refers to a clause in an auto insurance that pays for bodily or vehicular damage caused by a motorist to the policyholder in a vehicular accident. The faulty motorist is uninsured and thus cannot pay for the damage. This clause, mandatory when buying auto insurance in some US states, makes the insurer pay for the cost, instead.

Insuranceopedia explains Uninsured Motorist Coverage (UM)

In the US, 1 out of 8 drivers are uninsured or underinsured. Thus, it is advised that those with auto insurance see to it that their policy includes uninsured motorist coverage.

When one figures in a vehicular accident and the other driver who is at fault is either uninsured or underinsured (having exceeded the limit of his or her insurance), then scrambling for the funds to pay for the damage (either to the policyholder's body or to his or her vehicle) might become a problem. It is even aggravated when the guilty driver happens to hit and run.

This is where uninsured motorist coverage is helpful. It can either pay for hospital or medical costs caused by the accident or it can pay for the damages to the vehicle. Some insurance polices both cover vehicular and bodily damage. Others make one pay for both separately.

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