Uninsured motorists (UM) coverage indemnifies the insured for bodily injury only because of an accident with a legally liable uninsured motorist. Only compensatory damages are covered; punitive damages are specifically excluded. Some states offer property damage coverage in addition to bodily injury coverage. The following conditions must be met for an insured to be indemnified:
The loss must be caused by an auto accident and involve bodily injury (in most states)
The loss must be sustained by an insured
The insured must be legally entitled to recover for bodily injury damages
Definition of an uninsured motor vehicle:
Has no liability coverage at the time of the incident
Has liability coverage but not enough to meet the state’s financial responsibility requirement
Is operated by a hit-and run driver who cannot be identified who strikes an insured or family member, the insured’s covered auto, or any auto occupied by the insured or a family member
Has invalid liability coverage at the time of the accident because the insurer is insolvent or denies coverage.
Who is insured?
The named insured and family members
Anyone occupying the named insured’s covered auto
Any person entitled to recover damages because of bodily injury caused by an uninsured motorist to the named insured, family members, or passengers in the covered auto