Summary

The sun is shining, the radio’s blasting and your coffee’s temperature is just right. The day is off to a smooth start — until your car is rear-ended.

In the aftermath, you ask the distracted driver for their insurance information so you can get your car repaired. But what if the driver has none? You may already be covered if your auto policy includes uninsured motorist property damage coverage.

🚗 What is Uninsured Motorist Property Damage Coverage?

Uninsured motorist property damage coverage, or UMPD, is auto insurance that pays for damage to your car or other property if you’re hit by a driver without car insurance. Similarly, underinsured motorist property damage, or UIMPD, pays out if the at-fault driver in a crash doesn’t have enough insurance to pay for the damage they caused.

Typically, UMPD is combined with uninsured motorist bodily injury coverage, which pays for injuries due to a crash with an at-fault driver who has no car insurance.

Takeaways:

• UMPD helps cover repair costs if an uninsured driver damages your car or property.

• It can also cover hit-and-run damages in most states.

• Some states require a deductible, typically between $200 and $500.

Key Terms

• Uninsured Motorist Property Damage (UMPD): Coverage that pays for property damage caused by an uninsured driver.

• Underinsured Motorist Property Damage (UIMPD): Coverage for when an at-fault driver doesn’t have enough insurance to cover the damage they caused.

🌍 Where is UMPD Required?

Several states and Washington, D.C., require drivers to have uninsured motorist property damage coverage in their car insurance policies. The requirements vary by state, with limits ranging from $5,000 to $25,000, depending on location.

Additionally, twelve other states require insurers to offer UMPD, though drivers can choose to reject it in writing. Some states allow UMPD coverage only if collision insurance is not included in the policy.

Takeaways:

• Seven states and Washington, D.C., require UMPD coverage.

• Twelve additional states require insurers to offer UMPD but allow drivers to opt out.

• Some states mandate a deductible for UMPD claims.

Key Terms

• Mandatory Coverage: Insurance that must be included in a policy by law.

• Optional Coverage: Insurance that insurers must offer but that drivers can decline.

🔄 UMPD vs. Collision: Which Should You Buy?

If UMPD is optional in your state, you may be able to skip it if you already have collision coverage. Both types of insurance pay for damages caused by an uninsured or underinsured driver, but there are differences.

Uninsured motorist property damage coverage generally has a lower deductible than collision coverage and may cover damage to property beyond just your vehicle. On the other hand, collision coverage applies regardless of who caused the accident and can be useful for broader protection.

For those looking for the lowest-cost option, UMPD is usually cheaper. However, if you have a high-value car or want better coverage, adding collision insurance could be beneficial.

Takeaways:

• UMPD is generally cheaper than collision coverage.

• Collision insurance provides broader protection but comes with a higher deductible.

• If your state allows both, having collision coverage can ensure you’re fully protected.

Key Terms

• Collision Coverage: Pays for car repairs regardless of fault.

• Deductible: The amount a policyholder must pay before insurance covers the remaining costs.

Conclusion

Uninsured motorist property damage coverage can be a valuable part of an auto insurance policy, offering financial protection when an at-fault driver lacks insurance. While not required in every state, it can be an affordable way to ensure your car repairs are covered in the event of an accident with an uninsured driver.

Understanding your state's requirements and comparing UMPD with collision coverage can help you make an informed decision about the best coverage for your needs.