Uninsured Motorist Property Damage (UMPD) Explained

Uninsured motorist property damage coverage, usually shortened to UMPD, pays to repair your car when a driver with no insurance causes the crash. It is the vehicle-damage counterpart to uninsured motorist bodily injury coverage, which pays for injuries. The catch is that UMPD is not a uniform product. Some states sell it as a separate coverage with its own limit, some describe their uninsured motorist coverage as paying for both injuries and car repairs, and at least one state's uninsured motorist coverage does not repair cars at all. What you actually have depends on your state and on what is printed on your declarations page.

What UMPD pays for

The California Department of Insurance describes uninsured motorist property damage as paying for the damage to your car from an accident with an uninsured driver who is at fault. The Texas Department of Insurance describes uninsured and underinsured motorist coverage as paying if you are hit by someone who did not have insurance or did not have enough to pay your medical and car repair bills.

Two conditions run through every version. The other driver has to be at fault, and that driver has to be uninsured or, for underinsured coverage, carry too little insurance. UMPD is not a substitute for coverage when you cause the crash yourself.

Why the rules differ so much by state

Uninsured motorist coverage is regulated state by state, and state insurance regulators describe very different products under similar names:

• California: the Department of Insurance says UMPD has a limit of $3,500, only pays if the uninsured driver is identified, and that you may not need it if you have collision coverage.
• New Jersey: the Department of Banking and Insurance says all uninsured and underinsured motorist property damage claims require a $500 policy deductible, and that drivers on a Basic Policy have no protection if an uninsured or underinsured driver damages their vehicle.
• Oklahoma: the Insurance Department says uninsured and underinsured motorist coverage does not repair or replace your vehicle; it pays for medical care, or compensation for loss of life, for you and your passengers.
• Texas: the Department of Insurance describes uninsured and underinsured motorist coverage as reaching both medical bills and car repair bills that the at-fault driver cannot pay.

Because the spread is this wide, never assume that having uninsured motorist coverage means your car is protected. Look for a property damage line on your declarations page, or ask your insurer directly.

UMPD vs. collision coverage

Collision coverage pays to repair or replace your car after an accident, whoever caused it, minus your collision deductible. UMPD only applies when an uninsured driver caused the crash. That overlap is why California's regulator says you may not need UMPD if you already carry collision.

The two still differ in ways that matter. Collision is broader and usually carries higher limits, but you pay its deductible up front. UMPD is narrower and, depending on the state, may have a low limit or its own deductible. The coverage tends to matter most in a few situations:

• You dropped collision on an older car and carry liability only, so nothing else pays for your car when an uninsured driver hits it.
• Your collision deductible is high and you want a cheaper route when the crash clearly wasn't your fault.
• You live in a state where uninsured motorist coverage includes property damage by default and want to know what you are already paying for.

Hit-and-run: the identification problem

A hit-and-run is the clearest case of an at-fault driver who can't pay, yet it is exactly where UMPD can fall short. California's UMPD only pays if the uninsured driver is identified, so a driver who is never found leaves collision coverage as the way to fix the car. Other states treat it differently. Washington's insurance regulator says uninsured and underinsured motorist coverage may help pay for damage and injury from a hit-and-run accident or a phantom vehicle, and that you must report a phantom vehicle accident to the police within 72 hours if you are making an insurance claim. That 72-hour rule is Washington's; check your own state's deadline.

When the other driver is underinsured instead

Underinsured coverage applies when the at-fault driver had insurance, just not enough. New Jersey's regulator adds a condition worth knowing: you are only eligible for underinsured motorist benefits if your underinsured limits are higher than the other driver's liability limits. Other states use different formulas, so the limits you choose on your own policy can decide whether this coverage pays anything at all.

How to check what you have

• Find the uninsured motorist section of your declarations page and look for a separate property damage line, its limit, and its deductible.
• If the section lists bodily injury only, assume your car is not covered under it.
• Ask your insurer whether a hit-and-run by an unidentified driver is covered under your form, or only collision.
• If you carry stacked uninsured motorist coverage, ask whether stacking applies to any property damage portion or only to injury limits.
• If you are thinking of dropping collision on an older car, ask for a UMPD quote at the same time.

The bottom line: UMPD fills one specific gap, damage to your car caused by a driver who can't pay for it. Whether it is worth buying depends on your state's version, whether you carry collision, and how much you could absorb if an uninsured driver hit you. Read the uninsured motorist section of your declarations page before you need it, not after.