why is there insurance against uninsured drivers?
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Because “you can’t get blood from a stone” as the saying goes.
If someone is driving uninsured and they cause an accident in which you are injured and/or your property is damaged, they are certainly liable for those losses… but you can’t recover money from them that they don’t have.
Chances are if they can’t afford liability auto insurance and are driving despite a legal requirement that they carry it, they don’t have any other significant assets you can get a lien against or whatever.
And even if they have it, or could come up with it over time, you would still be on the hook for whatever court costs or attorney’s fees it took to get a judgement against them for wage garnishment or whatever (not to mention the time and hassle of navigating the legal system).
Whereas if you have UM/UIM coverage, your insurer will pay you for the loss, and then “subrogate”, which means they then go and attempt to recover what they paid out from the at-fault party, and you no longer have to worry about it.
You get compensated, get your car fixed/hospital bills paid (up to the limits on your policy), etc, and never have to deal with that other party directly. And most insurers won’t even count that loss against you when your policy comes up for renewal.
I’ve not seen a good answer yet. Why **specifically** for uninsured drivers, when you are more likely to have damage or injury (OP does not specify which type of insurance) caused by yourself? Don’t you want more broad insurance that cover all accidents?
If another driver is liable, better your insurer has to pursue them, insured or not.
The only reason I can think of is: ‘My car is old, I can easily afford to replace it if it breaks down or I crash it. But if somebody else damages it, i will be angry and want them to pay. “Unlicensed driver insurance” will reduce the stress of legal action, or being out of pocket, to me in that situation.’ Is that it?
Or is it some weird American thing where you need an add-on to normal insurance?
Whenever someone is injured, they have a right to file a personal injury lawsuit seeking a judgment/payment for damages. This can include loss of earning capacity, medical bills and general harms (“pain and suffering.”)
This right is frequently worthless against uninsured parties – they lack insurance, obviously, and assets as well.
So, if you purchase Uninsured Motorist Coverage, your own insurance company will step into the place of the uninsured party, and pay you the value of your personal injury claim. Depending on the gravity of the harms involved, this could greatly eclipse whatever insurances are already covering.
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