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Absolute Insurance Agency, LLC

© 2015 - All Rights Reserved


7400 University Ave, Ste A

Clive, IA 50325

(515) 279-2722

Uninsured Motorist Coverage

Why do I need Uninsured Motorist coverage on my auto insurance?  Why am I paying for the other person?

This question, or a variation of this question, is something that we hear frequently from our insureds.  Do I need uninsured motorist coverage?  Why am I paying for the other person?

On your auto insurance policy, you might notice Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverages listed where your liability limits are listed on your auto insurance policy.  These coverages are on your policy to help you – not to pay for the other person.

Uninsured Motorist Coverage:  This coverage may cover damage costs if you are involved in a covered accident with a driver who does not have insurance, or from a hit-and-run driver.
Sometimes, Uninsured Motorist coverage is separated into two different coverages: 
  • Uninsured Motorist Property Damage (UMPD) may cover damage to your property, including the damage done to your car that you are legally entitled to recover.  (This is a coverage that is not available in Iowa, but is available in some of the other states that we work in.  This is an optional coverage for liability only vehicles.)
  • Uninsured motorist bodily injury (UMBI) will pay for injury-related medical expenses to you or anyone in your vehicle. 
Underinsured Motorist Coverage:  This coverage may cover damages related to an accident where the other driver’s insurance policy limits are not enough to cover the damages.

A recent study by the Insurance Information Institute found that about 13% of drivers (1 in 8) don’t have auto insurance.  In Iowa, that number is a little lower with about 8% of drivers not having auto insurance.  Uninsured and underinsured motorist coverage protects you and your family against injuries caused by a driver who does not have insurance or does not have enough insurance.    
As always, your Absolute Insurance agent can help you with any questions about coverage on your insurance policy.