Uninsured Motorist Clause

Definition - What does Uninsured Motorist Clause mean?

An uninsured motorist clause is a clause in an auto insurance policy that allows for coverage of damages caused to the policyholder's property by a driver who does not have auto insurance. This can include injury damages. In the context of the law, a person who causes an auto accident is obligated to pay for the damages incurred to the other party. However, if the causal party doesn't have insurance, the injured party would have to shoulder the full financial burden if the casual party cannot otherwise pay the damages.

Justipedia explains Uninsured Motorist Clause

Auto insurance accidents can result in tens or even hundreds of thousands of dollars of damages and beyond. So, if a party does not have auto insurance and they cause an accident, then this can be a big problem for both him or her and the injured party. Uninsured motorist clauses are designed to help solve this problem for policyholders. These clauses in auto insurance policies can help prevent incredibly challenging financial situations, and that is why they are commonly bought as part of a policy.

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