What is the definition of Uninsured Motorists Coverage?

Uninsured Motorists Coverage refers to the coverage provided in auto insurance policies that pay when the driver does not have insurance. This is also applied to hit-and-run victims, who cannot go after the driver to sue for damages.

Although the government requires all drivers to carry liability insurance coverage, not all drivers comply, or, when they do, they just get themselves covered with the minimum amount allowed. The other party would want to be protected from such drivers, so that if the accident is caused by the uninsured driver, the victim of the damage can still get some benefits because of his uninsured motorists' coverage.

This may also be the case for drivers who are uninsured. Here, the insurance company pays for the difference between the maximum limit of the underinsured driver (who is the one at fault) and the actual cost of the damage or medical bills that the other driver incurred.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage