Uninsured Motorist Property Damage Coverage (UMPD) is the coverage that will protect against hit and runs.

But you need to be aware of certain considerations to assure coverage!

Under or Uninsured Motorist Property Damage (UMPD)

--First Party Coverage but 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.

So let us say there is a 50% split decision on negligence. Your insurance carrier will pay you only 50% under Uninsured Motorist Coverage(if this is a pure negligence state, read more on determining fault) or whatever a third party would be responsible for. Basically, you are 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 time ends up not recovering anything for the loss since most people without insurance have no 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. What? 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 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 insurance company has in your policy). If you do not know who hit you (hit and run), then your deductible is $300.

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 will literally pay from the uninsured property damage coverage (UMPD) to the collision coverage the entire deductible (sometimes just the difference between the two). So what? When they adjust your insurance rates, your payments under Collision will be closer to $0, which will give you better rate in your insurance.

Since now under the Uninsured Motorist Coverage you become a third party to your own insurance company, you are not bound by the 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 (this coverage is also explained in this website).

There are limits in 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 be in a rental car as long as you need with no preset limit.

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

To contine reading this article, go to Uninsured Motorist Property Damage Coverage Page 2 by clicking here.

But if Uninsured Motorist Property Damage does not cover injuries, then what does? Uninsured Motorist Bodily Injury or UMBI Coverage does. Learn More.