Uninsured Motorist Coverage — Vermont
Uninsured and underinsured motorist coverage pays for your injuries and vehicle damage when you're hit by a driver who has no insurance or not enough insurance to cover your losses.
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What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) pays when an at-fault driver has no insurance. Underinsured motorist coverage (UIM) pays when the at-fault driver's liability limits are too low to cover your damages. Both coverages step in after the other driver's insurance is exhausted or confirmed absent, covering medical bills, lost wages, vehicle repairs, and pain and suffering up to your policy limits. You file the claim with your own carrier, not the other driver's.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
It's also critical if you have passengers regularly — UM covers their injuries when an uninsured driver is at fault.
Compare your UM/UIM limit to your health insurance deductible and out-of-pocket maximum. If your health plan leaves you exposed, carry UM/UIM at least equal to your liability limit. If your health coverage is strong, you can skip UM bodily injury and keep only UMPD if your state offers it separately.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
- Your state's uninsured driver rate — states with higher percentages of uninsured drivers see higher UM premiums because claim frequency is higher.
- Your bodily injury liability limits — carriers often price UM as a percentage of your liability limit, so raising liability raises UM cost proportionally.
