Part C: Uninsured Motorists Coverage

In the insuring agreement, with Part C coverage, the insurance company agrees to pay any compensatory damages that you are legally entitled to receive from the owner or operator of an uninsured car. Thus, this coverage applies when you are hit by a hit-and-run driver or a negligent driver whose insurance company is insolvent.

The damages must be because of bodily injury caused by an accident. The damages include medical bills, lost wages and payment for permanent disfigurement because of the accident.

Coverage only applies if the uninsured driver is legally liable for the accident. The insurance company’s liability for an accident is the amount show on the declarations page.

This coverage also pays for property damage in some states.

With Part C uninsured motorists coverage, there are three people who are covered. This includes:

  • You (the insured) and your family members who are injured by an uninsured driver,
  • Anyone else who was occupying your car, and
  • Anyone legally entitled to recover damages for bodily injury to the above people.

With Part C uninsured motorists coverage, an uninsured vehicle includes:

  • A car or trailer not insured by a bodily injury liability insurance policy at the time of the accident,
  • A car or trailer insured by a bodily injury liability insurance policy at the time of the accident that is less than the amount required by the state’s financial responsibility law in the state in which the car is garaged,
  • A car or trailer insured by a bodily injury liability insurance policy at the time of the accident when the insurance company denies coverage or becomes insolvent.
  • A car or trailer that is unidentified (i.e., a car or trailer in a hit-and-run),

Uninsured motorists coverage has several exclusions. These exclusions include:

  • You (the insured) are not covered if you are injured while occupying or by another car you own that is not insured,
  • Your family members are not covered if they are occupying another car you own that is covered by another insurance policy,
  • You are not covered if you settle a bodily injury claim without your insurer’s consent
  • You are not covered if you are using your car as a means of transportation for the public (i.e., as a taxi),
  • Anyone using your car who does not have a reasonable belief that they have your permission to do so is not covered,

Also, punitive and exemplary damages are excluded from coverage.

Underinsured motorists coverage varies greatly from state to state. Generally, underinsured motorists coverage can be added to Part C coverage. Underinsured motorists coverage kicks in when you have an accident with someone whose liability limits in his insurance policy are less than the amount of your bodily injury damages. The amount this coverage pays varies by state. Typically, it will pay the maximum amount set out in your policy less the amount that was paid by the other driver’s policy.