Does my car insurance cover damage caused by an uninsured driver if I have collision coverage?

Does my car insurance cover damage caused by a driver who is uninsured or underinsured if you have collision coverage? Crashing with an uninsured driver is not an ideal situation, but all responsible drivers should prepare for it. According to the Insurance Information Institute, one in eight drivers is uninsured.

Also, many drivers only purchase the minimum state-required coverage, which may not be enough to cover accident damages. Given this reality, it’s important to have the answer to questions such as whether car insurance covers damage caused by an uninsured driver or, does car insurance cover medical bills?

This article explains how collision and uninsured motorist insurance can help protect you against damages from uninsured or underinsured drivers.

Collision Insurance for Damage Caused by an Uninsured Driver

Collision coverage is insurance that pays for damages to your car, including damage caused by uninsured drivers. It differs from state-minimum liability insurance, which covers bodily injury and any property damage that you cause to others.

While it is not legally a car insurance requirement, lenders usually require collision insurance if you lease or finance a car. This insurance from the best collision coverage car insurance companies usually pays for:

• A crash you are at fault for with another driver
• A collision with an object such as a mailbox or lamppost
• An accident where your car rolls over
• Damages by another driver who doesn’t have enough insurance to cover the damage cost

Generally, collision coverage applies regardless of who is at fault.

How Collision Coverage Works With Uninsured Drivers

Claims and payments in the event of a collision depend on different factors. Questions to consider include:

• Who’s at fault?
• What type of coverage do the drivers involved in the crash have?
• What is the nature of the damage?

If you’re at fault in an accident, your collision coverage kicks in to cover damages to your vehicle. If your vehicle is damaged but not totaled, collision insurance covers the repair costs.

On the other hand, if your car is totaled, you’ll receive a check for its actual cash value. In any case, you have to cover the cost of your deductible.

Generally, if the other driver is 100% at fault, their liability insurance will pay for damages to your car. If the driver has this type of coverage, you should file a claim with their insurance first. However, if the driver’s liability limits are too low or non-existent, your collision insurance would pay to fix your car.

Read More: What should I do if I’m in an accident and don’t have car insurance?

Collision Coverage Costs

According to the National Association of Insurance Commissioners (NAIC), the average annual cost of collision insurance in the U.S. is $370.43. In addition to your premium, you should also pay attention to the car insurance deductible. This is the amount you must pay out of pocket when you file an insurance claim.

You choose your deductible when you buy your insurance policy, which ranges from $250 to $2,000. A high deductible means you pay a lower car insurance premium, but you will also pay more out of pocket if you make a claim.

Other Coverage Against Uninsured Drivers

One alternative to collision coverage is uninsured motorist property damage (UMPD). UMPD of the best uninsured motorist car insurance companies covers damage to your car if a driver without car insurance hits you.

UMPD is not compulsory in most states, but 19 states and Washington, D.C. require this coverage. If UMDP is not compulsory in your state, it’s worth considering since it has several advantages, even if you already have collision coverage.

One of its main pros is that, unlike collision coverage, UMDP will help cover the cost of your medical bills if an uninsured driver hits you. An average of $5.50 per month is a relatively inexpensive type of car insurance coverage.

If you don’t have a loan and can afford to pay for your repairs, this may be a better option than collision coverage.

Collision Coverage Provides Some Protection Against Uninsured Drivers

Collision coverage can protect you against damages from uninsured drivers whether or not you are at fault. However, collision coverage may not be enough, as it doesn’t protect you from paying for any resulting medical costs.

Consider signing up for uninsured motorist coverage, which covers damage to your vehicle and medical expenses if an uninsured driver hits you.

Case Studies: Car Insurance Coverage for Damage Caused by Uninsured Drivers

Case Study 1: Sarah’s Collision Coverage

Sarah was involved in a car accident caused by an uninsured driver. Fortunately, she had collision coverage as part of her car insurance policy. Her insurance company covered the damages to her vehicle, including the repair costs. Sarah was relieved to know that her collision coverage provided protection against uninsured drivers, giving her peace of mind on the road.

Case Study 2: Michael’s Uninsured Motorist Protection

Michael was hit by an uninsured driver, resulting in significant damage to his car. In addition to collision coverage, he had uninsured motorist protection as part of his car insurance policy. This coverage helped cover the costs of both the vehicle repairs and his medical bills. Michael was grateful for having the additional protection against uninsured drivers.

Case Study 3: Emma’s Comprehensive Coverage

Emma’s car was damaged in a hit-and-run accident caused by an uninsured driver. While collision coverage only applies to accidents where the insured driver is at fault, Emma had comprehensive coverage as part of her car insurance policy.

This coverage protected her vehicle against damages caused by uninsured drivers, regardless of fault. Emma’s comprehensive coverage ensured that her car repairs were taken care of, even in the absence of the responsible driver.