Uninsured Motorist Property Damage Coverage (UMPD)

The coverage that will protect against hit and runs

Under or Uninsured Motorist Property Damage (UMPD)

--First Party Coverage but also acts as third party coverage
--Fault based
--Deductible Applies
--Limits on amount of coverage

Uninsured Motorist Property Damage protects you in case an uninsured or underinsured driver hits you.

This coverage is fault based and only covers property damage and not bodily injury claims (you need the next coverage for that). Therefore, the insurance carrier will only pay the portion of liability or negligence given to the party that hit you.

Let us say there is a 50% split decision on negligence or fault.

Your insurance carrier will pay you only 50% under Uninsured Motorist Coverage (if this is a pure negligence state) or whatever a third party would be responsible for. In other words, your policy is insuring the person without insurance.

This seems to be straight forward, but there are other things you need to know about this coverage.

You need to know that you will be paid for your damages, and then the insurance company will have right to go after the Uninsured Motorist that hit you (they will subrogate).

The insurance company in some cases ends up not recovering anything for the loss since most people without insurance have no collectable assets.

Because your insurance company will insure the responsible party, they first need to determine the following before they grant you any coverage:

1. either this person did not have insurance, or he/she had insurance but the limits of coverage will be so low that he will be underinsured.
2. the accident was caused at least in part by the under/uninsured party.

How do this works then? I have Collision; doesn’t this cover my damages anyway?

Yes and no. Technically speaking you will not see any difference with the Uninsured Motorist Coverage. However, there are differences behind the scene and they are big.

The first difference is that your deductible is usually less, and it varies depending of the circumstances.

If you are in an accident where you know who hit you, then your deductible is $100 (or whatever your policy indicates).

If you do not know who hit you (hit and run), then your deductible is $300 (or whatever your policy indicates).

But again, I have Collision and now I just have a little lower deductible under Uninsured Motorist? Is that it?

No, that is what appears form the outside.

Your insurance company will literally pay from the uninsured property damage coverage (UMPD) to the collision coverage the entire deductible (sometimes just the difference between the two).

When they adjust your insurance rates, your payments under Collision will be closer to $0, which will give you better rate on your insurance bill.

Under the Uninsured Motorist Coverage you become a third party to your own insurance company.

This equates that you are not bound by some of the terms you were before.

To be able to have a rental car when your car is at the shop, normally you have to have rental coverage.

There are limits on this rental coverage (for example $30 dollars per day, and only for 4 weeks).

However, if you have Uninsured Motorist Property Damage Coverage, they would have to pay you as if you were a third party, with no limits.

Think about it as if other person hit you and this person’s insurance company will pay you for the damages they caused.

They will not tell you that you agreed to any limits because you do not have any business with them, they just have to pay for the damages owed. You will be able to get a rental car as long as you need it with no daily limit.

This applies even if you do not carry any kind of rental coverage on your policy.

Uninsured Motorist Property Damage Coverage Page 2

Click below for an explanation insurance coverages and terms:

Coverages and Terms Overview

Automobile Liability Insurance or Liability Page 1
Automobile Liability Insurance or Liability Page 2

Automobile Medical Payments or Personal Injury Protection (PIP) Page 1
Automobile Medical Payments or Personal Injury Protection (PIP) Page 2

Collision Coverage (Protection Against Loss to the Auto) Page 1
Collision Coverage (Protection Against Loss to the Auto) Page 2

Comprehensive Coverage (Protection Against Loss to the Auto) Page 1
Comprehensive Coverage (Protection Against Loss to the Auto) Page 2

Under or Uninsured Motorist Property Damage (UMPD) Page 1
Under or Uninsured Motorist Property Damage (UMPD) Page 2

Under or Uninsured Motorist Bodily Injury (UMBI)

Rental Reimbursement or Loss of Use Coverage Page 1
Rental Reimbursement or Loss of Use Coverage Page 2

Restoration Coverage

Towing and/or Road Assistance Coverage (Emergency Packages)

Insurance Clauses and Terms

Actual Cash Value or ACV
Additional Insurance Clause
Cancellation of Coverage Clause
Choice of Law Clause
Forum Selection Clause

Duty to Cooperate Clause
Duty to Report Losses Clause
Financial Responsibility Clause
Insurable Interest Concept
Interpretation of the Policy Concept

Mandatory Arbitration Clause
Mitigation of Damages Clause
Non Duplication of Benefits Clause
Proof of Loss Clause
Promissory Estoppel Concept

Reservation of Rights Concept
Reasonable and Necessary Clause
Right of Appraisal Clause
Right of Settlement Clause
Rights of Counsel Concept

Subrogation of Rights Clause Part I
Subrogation of Rights Clause Part II
Statute of Limitations Concept
Replacement Cost Value
Restoration Coverage
Transfer of Benefits Clause