Response: Taylor, we discussed this already but let me tell you this again that you need to compare auto insurance quote and coverages before you buy auto insurance. Each of the coverage has its own  risk which is covered, in short you are paid a claim only if you have the coverage for the same. The underinsured motorist protection pays you for damages that exceed the amount of coverage carried by a driver who is considered underinsured. Remember that UIM will only pay up to the limits of your policy after subtracting the amount paid by the other driver’s insurance. This means that the amount listed as your UIM limit is the total amount paid by both insurance companies, not the additional amount your insurance company will pay after the other driver’s insurance pays. Both UM and UIM apply to you and any passengers in your car, and to you and others listed on your insurance policy (including family members) when in other cars.

Uninsured motorist property damage (UMPD) coverage may seem strange, especially considering many people already have collision coverage on their car insurance. However, for careful drivers who don’t have collision coverage, UMPD can be a good way to protect their car from uninsured drivers without raising their premium a lot. In addition, a lower deductible for UMPD is frequently cheaper than collision coverage with the same low deductible. UMPD does not apply in hit-and-run accidents, because UMPD coverage is cheaper than collision coverage—making it very tempting for some drivers to make a “hit-and-run” claim under their UM coverage instead of their collision coverage, or to purchase UM coverage and not have collision coverage at all.

Uninsured motorist bodily injury (UMBI) protection can help you in another way. If you’re a pedestrian and you carry this coverage and you get hit by a car while you’re trying to cross the street, the coverage could pay your medical expenses and lost wages. That could be important, because even if you have medical payments coverage and health insurance, those still won’t pay for lost wages. You could get coverage for your lost wages by purchasing disability insurance, which many people have through their employer, but it would not cover your passengers or family members, and could disappear if you switch jobs. In addition to protecting you as a pedestrian, UM/UIM can also protect you and your family members traveling in other cars.

One thing to remember is that you should first inform the insurance company of the accident before you take action.