Uninsured Motorist Clause

Definition - What does Uninsured Motorist Clause mean?

In most states, it is a crime to drive a vehicle without liability coverage. Most jurisdictions require drivers to carry liability insurance so that they can pay for any injury that they cause someone else due to negligent actions. The drivers who don’t carry such insurance are known as uninsured motorists.

In the context of insurance, the definition for an uninsured motorist also includes hit-and-run drivers (i.e., those who flee an accident scene after causing the accident, leaving the injured driver with no way to seek compensation for their injury).

Some insurance policies have an uninsured motorist clause that provides for the cost of damages to a vehicle owner when they receive an injury (property damage or personal injury) from an uninsured motorist. However, that coverage is usually optional and only available to those who choose to pay for a full-coverage auto insurance policy.

Justipedia explains Uninsured Motorist Clause

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. 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 them 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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