Uninsured Motorist and Underinsured Motorist Coverage Bodily Injury (UMBI)
While the primary forms of insurance coverage (liability and collision) are often required by law, there are many insurance options you might want to think about adding to your policy, such as UMBI.
It is useful whenever you are involved in a car accident with a driver who caused the accident but does not have insurance coverage. It is also the kind of coverage required in a hit-and-run accident, where you have no idea who the at-fault motorist is. This coverage will pay for your medical costs to the limit of your policy whenever you have hospital bills and the other driver is unknown or without insurance.
This kind of coverage is particularly useful if you don't have health insurance. When your policy limits are high enough, your medical bills will be paid off.
Underinsured Motorist Bodily Injury
This coverage is comparable to uninsured motorist bodily injury coverage, except for it handles your medical expenses when the at-fault motorist doesn't have sufficient liability coverage to pay for all your medical bills. It pays the difference between what the at-fault motorist's insurance can take care of and what is left over, so that you don't need to.
Uninsured Property Damage
This takes care of the cost of damage to your property whenever an uninsured motorist is the one at-fault. It works together with your collision coverage - the uninsured property damage coverage generally only repays your deductible for your collision coverage.