Do You Pay a Deductible for Uninsured Motorist Coverage?

Getting hit by an uninsured or underinsured driver can leave you facing major expenses. Uninsured and underinsured motorist coverage helps protect you in these situations. But does this type of protection come with a deductible like collision or comprehensive insurance?

Whether or not you pay a deductible with uninsured motorist coverage depends on the specific type of policy you have. Below we’ll explain how standard, limited, and “no-fault” uninsured motorist coverage works regarding deductibles.

What is Uninsured Motorist Coverage?

Uninsured motorist coverage provides protection if you’re injured in an accident caused by a driver with no insurance. There are two main types:

• Uninsured Motorist Bodily Injury (UMBI) – Covers injury claims from an uninsured driver. Pays for medical treatment, lost wages, pain and suffering, etc.

• Uninsured Motorist Property Damage (UMPD) – Covers repair costs if an uninsured driver damages your vehicle or other property.

UMBI coverage is mandatory in most states. UMPD is optional but highly recommended.

Underinsured motorist coverage provides similar protection if the at-fault driver’s liability limits are inadequate to cover all your damages.

Is There a Deductible for Uninsured Motorist Coverage?

UMBI – Uninsured motorist bodily injury coverage generally does not have a deductible. The at-fault driver’s insurance is supposed to pay your deductible. Since the driver has no insurance, your UMBI coverage steps in without applying a deductible.

UMPD – Many states do allow insurers to apply a deductible to UMPD claims, typically $250 – $500. So check your policy documents to confirm if a deductible applies. If permitted in your state, the insurer may require you to pay this deductible out-of-pocket before covering the remaining vehicle damage.

Underinsured Motorist Coverage – Similar to UMBI, underinsured motorist bodily injury coverage (UIMBI) typically does not impose a deductible. For underinsured property damage (UIMPD), a deductible may apply depending on your state’s regulations and policy terms.

Why UMBI Doesn’t Have a Deductible

Since UMBI covers injuries and other damages, it makes sense that a deductible would not apply:

• UMBI is meant to stand in the place of the at-fault driver’s liability coverage. Liability insurance does not have deductibles.

• It would be unfair for the victim (you) to pay anything out-of-pocket. The negligent uninsured driver should bear all costs.

• Medical costs, lost wages, and pain/suffering are not linked to a vehicle repair deductible amount.

• If the driver was insured, their liability coverage would pay for all your damages without applying a deductible. UMBI provides the same comprehensive protection.

For these reasons, UMBI operates on a “no-fault” basis – you receive complete claim reimbursement without any deduction.

How Deductibles Apply with UMPD and UIMPD

While injury coverage through UMBI and UIMBI does not utilize deductibles, there are some good reasons property damage coverage may:

• UMPD functions similarly to collision insurance. Collision comes with a deductible to prevent policyholders filing small claims frequently. UMPD deductibles help limit minor claims.

• The deductible encourages you to only file a UMPD claim when damages exceed a meaningful amount. For example, most people would not file a UMPD claim for a $200 bumper scratch if there was a $500 deductible.

• Insurers want to minimize claims costs to keep premiums affordable. Applying deductibles is one way to do this.

So while having a deductible for UMPD or UIMPD seems inconvenient if an uninsured or underinsured driver damages your vehicle, it makes sense from an insurance operations standpoint. Be sure to check your individual policy to see if a deductible applies.

Typical Uninsured Motorist Deductible Amounts

If your UMPD coverage does come with a deductible, how much will it be?

Deductible amounts can vary based on your insurer and policy limits purchased. But typically UMPD deductibles fall in the range of:

• $250 – $500 for moderate limits
• $500 – $1,000 for higher limits

For example, a UMPD policy with $30,000 in coverage might have a $250 or $500 deductible. For a policy with $50,000 limits, the deductible may be $500 or $1,000.

The deductible may also match your collision coverage deductible. However, some insurers apply a lower UMPD deductible, like $250 when your collision deductible is $500 or $1,000.

Before purchasing a policy, ask your agent to confirm the exact UMPD deductible amount so you know what to expect in the claims process.

Paying Your Deductible After an Uninsured Driver Claim

If an uninsured driver hits you and causes significant vehicle damage or bodily injury, here is the typical claims process:

1. File a claim with your insurer for UMPD and/or UMBI compensation.

2. For any applicable UMPD deductible, your insurer will likely require you to pay this amount upfront before covering remaining repair costs.

3. Your insurer pays the auto body shop directly for covered vehicle repairs beyond the deductible.

4. For injury claims under UMBI, the insurer reimburses your medical bills, lost wages, and other damages without applying a deductible.

5. Your insurance company may then attempt to recover damages including the deductible amount from the uninsured at-fault driver directly through subrogation.

Key Takeaways

• UMBI does not have a deductible, while UMPD may depending on state laws.
• Typical UMPD deductibles are around $250 – $500.
• You must pay the UMPD deductible upfront before the insurer pays the repair facility.
• UMBI injury claims are covered with no deductible, just like at-fault liability coverage.
• Your insurer seeks to recover damages from the uninsured driver through subrogation.

Knowing how deductibles work with uninsured and underinsured motorist coverage allows you to make informed choices when purchasing policies and navigate the claims process efficiently. Discuss options with your insurance agent to ensure you have adequate protection in the event an uninsured or underinsured driver causes you harm.