Glossary > Insurance > Auto Insurance > Uninsured

Hit-and-run Coverage

Hit-and-run coverage, also known as Uninsured Motorist Property Damage (UMPD) coverage, is a type of insurance that protects you if your vehicle is damaged in a hit-and-run accident or by an uninsured driver. This coverage helps pay for repairs to your car when the at-fault driver cannot be identified or is uninsured.

Example #1

Imagine you return to your parked car only to find it has been hit, and the responsible driver has fled the scene without leaving any contact information. Hit-and-run coverage would help cover the cost of repairing the damages.

Example #2

While driving, another vehicle sideswipes you and speeds away before you can identify them. In this scenario, hit-and-run coverage would step in to cover the costs of repairing your vehicle.

Misuse

A misuse could occur if an individual purposefully damages their own vehicle and falsely claims it was a hit-and-run incident to receive a payout from their insurance company. This misuse can lead to increased premiums for all policyholders to cover fraudulent claims, impacting the affordability of insurance for everyone.

Benefits

One of the significant benefits of hit-and-run coverage is that it provides financial protection when you are the victim of a driver who leaves the scene or lacks insurance. Without this coverage, you would be left to cover the repair costs on your own.

Conclusion

Hit-and-run coverage is crucial for safeguarding consumers against the financial burden of repairs resulting from hit-and-run accidents or encounters with uninsured drivers. By having this coverage, consumers can have peace of mind knowing they are protected in such unfortunate situations.

Last Modified: 4/29/2024