Automobile insurance can get pretty complicated. There are a lot of coverage types available to us as consumers. One of the most misunderstood coverage types available is “uninsured motorist property damage,” also known as UMPD.
What is uninsured motorist property damage?
Uninsured motorist property damage is liability coverage designed to pay for damage to your property, in most cases your car, in the event an uninsured motorist causes an accident that damages your vehicle.
Many insured mistakenly believe their car is covered in the event described above if they have basic uninsured motorist or underinsured motorist coverage, also known as UMBI; the BI standing for bodily injury. This is not the case.
What if I have collision coverage?
You may not need UMPD if you have collision damage coverage on your policy. Collision coverage will normally pay for damage to your vehicle if you are struck by an uninsured/underinsured motorist…but here’s the kicker; collision coverage may carry a much higher deductible than UMPD.
A couple items to note about uninsured motorist property damage and collision coverage:
– UMPD may be mandatory – depending on which state you live in.
– UMPD may be automatically added to your policy unless you specifically reject it when you purchase coverage – again depending on which state you live in.
– If you have a multi-vehicle policy, but do not purchase collision on every vehicle, UMPD may be a good idea – the “liability only” vehicle (the one without collision or comprehensive coverage) will be covered if it is damaged by an at-fault driver (not by you as the owner- you would need collision coverage for that).
– UMPD cannot be purchased for only one vehicle per policy; it is liability coverage and therefore applies to every vehicle – you cannot do a mix-n-match of collision and UMPD by vehicle to save money. To be clear; you can pick and choose which cars to have full coverage on.
– UMPD usually carries a $250 deductible – you may not get the choice to raise it in order to lower your insurance premium.
Contact your local independent insurance agent to determine the current regulations regarding UMPD in your state.
You may be able to save some money if you are in a position where the coverage is not necessary for you (or you may need it and not currently have it).