What is Uninsured Motorist Property Damage?
UMPD is a type of car insurance coverage that provides protection for damage to your vehicle in the event that you are in an accident with an uninsured driver. This coverage is not mandatory, but it is available as an option for drivers to purchase as part of their car insurance policy. It typically covers the cost of repairs to your vehicle if it is damaged in an accident caused by an uninsured driver. It is important to note that UMPD typically does not cover injuries or medical expenses, and typically only covers damage to your vehicle.
Why is UMPD Important?
According to MoneyGeek, around 13% of drivers in the United States are uninsured. This means that if you are in an accident with one of these drivers, there is a good chance that they will not have the means to pay for the damage they have caused. Without UMPD, you would have to pay for the repairs out of your own pocket. This can be financially devastating, especially if your vehicle is severely damaged.
Additionally, it is not uncommon for uninsured drivers to flee the scene of an accident, making it difficult to hold them accountable for the damage they have caused. In these cases, UMPD can provide the financial protection you need to get your vehicle repaired and get back on the road.
How does UMPD work?
When you purchase UMPD as part of your car insurance policy, your insurance company will set a limit for the amount of coverage you have. This limit is typically the same as your liability coverage limit, which is the maximum amount your insurance company will pay out for damages caused in an accident. For example, if you have $50,000 in UMPD coverage and your vehicle is severely damaged in an accident caused by an uninsured driver, your insurance company will pay up to $50,000 for the repairs.
It’s important to note that you will have to pay a deductible before your coverage kicks in, similar to other types of car insurance. A deductible is the amount of money you have to pay out of pocket before your insurance company begins covering the cost of repairs. The higher your deductible, the lower your premium will be.
How much does UMPD cost?
The cost of UMPD will vary depending on a number of factors, such as the value of your vehicle and your driving history. However, it is generally considered to be an affordable addition to your car insurance policy. Many insurance companies offer UMPD as an add-on to your standard policy, and it can often be added for a few extra dollars per month. It’s important to keep in mind that the cost of UMPD is generally less than the cost of repairs to your vehicle in the event of an accident with an uninsured driver.
Uninsured Motorist Property Damage (UMPD) is an important type of car insurance coverage that provides protection for damage to your vehicle in the event that you are in an accident with an uninsured driver. While it is not mandatory, it is a valuable addition to your car insurance policy that you should carry.
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