What is uninsured/underinsured motorist coverage?
Uninsured/underinsured motorist coverage is optional or standard auto insurance protection that pays for your injuries and vehicle damage when struck by a driver who has no insurance or insufficient liability limits.
When you're in a collision caused by another driver in Ontario, that driver's liability insurance typically covers your medical bills and property damage. If that driver has no insurance at all, or their policy limits fall short of your actual losses, you face a coverage gap. Uninsured/underinsured motorist (UM/UIM) coverage bridges that gap.
This protection pays for your medical expenses, lost income, and pain and suffering up to your chosen coverage limit when you're hit by an uninsured driver. In underinsured scenarios, it tops up the at-fault driver's inadequate liability limits so you're not stuck absorbing the difference yourself.
Ontario's insurance rules treat UM/UIM coverage as an optional endorsement on most auto policies, though some policies include it by default. Since uninsured and underinsured drivers remain common, this coverage is particularly valuable if you or your passengers face serious injuries. Your own insurer handles the claim under your UM/UIM limits, avoiding delays waiting for a judgment against someone who may have no assets.
Coverage limits are yours to choose and should reflect your income, family needs, and risk tolerance. An auto insurance provider can explain how your current limits compare to potential loss scenarios and help you decide whether the endorsement makes sense for your situation.