I live in California and things definitely do vary from state to state, but here’s how it works here:
Definitions:
UM: Uninsured motorist. (Property damage)
UM BI: Uninsured motorist bodily injury.
The UM is pretty simple. The main difference between UM and your own collision coverage is the deductible. If somebody hits you and is at fault and they don’t have insurance or their limits don’t cover the damage, then your UM covers the loss without any deductible. The other party must be identified though, even if it’s hit and run. Otherwise anyone who backed into a phone pole would claim it was hit and run to get out of the deductible and not be charged an at-fault loss.
For UM BI, think of your insurance filling the role of the other party’s insurance and there isn’t the requirement of identifying the at-fault party. Don’t confuse this with Med Pay that just pays your doctor bills. This is full liability insurance that covers larger settlements (pain and suffering, lost income, special damages). Where you would normally sue the at-fault party, now you’re technically suing your own policy.
Years ago a car full of thugs had just shot up a party and were fleeing and they ran a stop and t-boned my family. My wife’s head went through the passenger window and gave her a huge scar. The thugs went to jail and didn’t have insurance. Our UM BI covered my wife’s injuries and paid for her time off work, cosmetic surgery, and a special settlement for having a scar forever. 30+ years later and she still has to wear her bangs down to hide her forehead.
