Uninsured Motorist Coverage Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Uninsured Motorist Coverage, written in plain English, along with examples of how it is used.

What is Uninsured Motorist Coverage?

(v) Uninsured Motorist Coverage is the additional coverage offered in insurance policies when the insurer meet an accident from a driver when he or the vehicle does not have third party insurance or the vehicle or driver is not insured at all denying insurance benefits to the victim

History and Meaning of Uninsured Motorist Coverage

Uninsured Motorist Coverage is an insurance policy that offers coverage to a driver who meets with an accident caused by a driver that does not have car insurance or is underinsured. It provides an additional layer of protection for the driver in case of injury or property damages caused by an uninsured driver or a hit-and-run.

This policy was introduced in the 1950s in response to the growing number of accidents caused by uninsured drivers, which left innocent victims without coverage for their losses. Since then, almost every US state has mandated the inclusion of Uninsured Motorist Coverage in auto insurance policies.

Examples of Uninsured Motorist Coverage

  1. Jim is driving when he is struck by a car whose driver doesn't have car insurance. Fortunately, Jim has Uninsured Motorist Coverage and is able to claim compensation for his injuries.
  2. Sarah is hit by a hit-and-run driver while walking on the sidewalk. Since the driver is unidentifiable, Sarah's Uninsured Motorist Coverage covers the cost of her medical bills and lost wages.
  3. Jack's car is hit by a driver who has insurance, but the policy has liability limits that don't cover Jack's damages. Jack can claim compensation for the remaining damages from his Uninsured Motorist Coverage policy.

Legal Terms Similar to Uninsured Motorist Coverage

  1. Third-Party Coverage: Insurance policy that covers damages and injuries caused to a third-party by the insured.
  2. Underinsured Motorist Coverage: An insurance policy that provides coverage when the at-fault driver's insurance policy's liability limits are insufficient to cover the injured party's costs.
  3. Liability Coverage: An insurance policy that pays for damages to another party when the insured is at fault for an accident.