Uninsured/Underinsured Motorist Coverage: Protects Your Fleet When the Other Driver Can’t Pay
Many accidents involve drivers with little or no insurance, exposing your vehicles and team to unexpected costs. This critical coverage steps in when another driver can’t—helping your business stay on the road and financially protected.
See Uninsured/Underinsured Motorist Coverage in Action
Real scenarios that demonstrate how this fleet coverage steps in when your business needs it most.
Delivery Van Bumped by Uninsured Driver
Jose managed a delivery fleet when one of his vans was rear-ended at a stoplight by a driver who had no insurance. Uninsured Motorist Coverage activated immediately, handling the $4,100 repair bill and lost delivery time. Instead of absorbing the cost or dealing with collections, Jose’s company paid only their deductible and the van was back in use within days.
Employee Injured by Underinsured Motorist
During a jobsite return, one of Samantha’s drivers was sideswiped by a car with only minimum coverage. Underinsured Motorist Coverage paid the remaining $18,000 in medical costs and wage loss after the at-fault driver’s limit was exhausted. Rather than facing a major financial hit, her company preserved both their employee’s health and business cash flow.
Multi-Vehicle Accident with Uninsured Driver
After a chain-reaction collision, Alex’s three-vehicle plumbing fleet was struck by an uninsured driver. Uninsured Motorist Coverage covered the combined $58,000 in repairs, medical bills, and temporary vehicle rentals. What could have bankrupted the business resulted in just a manageable deductible and smooth claims process.
Everything You Need to Know About Uninsured/Underinsured Motorist Fleet Coverage
The complete picture: what's covered, what's not, and how to decide if your business fleet needs this protection.
Uninsured/Underinsured Motorist Coverage (Plain English)
Uninsured/Underinsured Motorist Coverage protects your fleet when another driver causes an accident but doesn’t have enough insurance or any at all. If your business vehicles, drivers, or passengers are hurt by an uninsured or underinsured motorist, this coverage pays for repairs or injuries up to your policy’s limit. The key thing to understand is that it shields your company from the financial impact of someone else’s lack of coverage.
Policy Details & Fine Print
Your claim will be subject to a deductible—the amount your business pays before insurance steps in. You choose the coverage limits for both bodily injury and property damage (often per vehicle). Claims typically pay Actual Cash Value (ACV) for repairs. Rental vehicle reimbursement or lost income may require additional endorsements. Coverage only applies if the at-fault driver is not adequately insured, and documentation is required to confirm fault and coverage gaps.
Uninsured/Underinsured Motorist vs. Liability Coverage
Uninsured/Underinsured Motorist Coverage is NOT the same as Liability Coverage. Uninsured/Underinsured Motorist covers your vehicles and people when someone else is at fault but can’t pay, while Liability Coverage pays for damage you cause to others. You typically need both to protect your business fleet fully.
Who Needs Uninsured/Underinsured Motorist Fleet Coverage?
You typically need this coverage if:
- You operate a fleet of commercial vehicles in Colorado or Utah
- Your business depends on employee drivers on public roads
You might skip this coverage if:
- Your vehicles are never driven off private property
Limits & Coverage Options
Coverage limits are set per vehicle or per incident. You select property damage and bodily injury limits that make sense for your business exposure and vehicle values. Deductible amounts can be tailored to your company’s risk tolerance—lower deductibles mean higher premiums. Optional add-ons, like rental reimbursement, are available for added protection.
What’s NOT Covered by Uninsured/Underinsured Motorist Coverage
This coverage does NOT cover:
- Damage you cause: If your driver is at fault, liability coverage applies instead.
- Physical damage unrelated to uninsured/underinsured drivers: Collision coverage is needed.
- Punitive damages: These are almost always excluded by policy language.
For these situations, you'd need commercial auto liability or collision coverage.
Ready to Add Uninsured/Underinsured Motorist Protection?
Now that you understand this fleet coverage, see how affordable real protection can be with personalized quotes from 26+ top carriers.
Your Local Coverage Experts
1,430+ Colorado and Utah business owners trust our expertise to explain every coverage clearly and find the right protection for their fleet.
4.9/5 Stars
Google Reviews from real customers, just like you
97% Retention
Customers stay with us year over year over year
Independent
We work for you, not insurance companies
Local
Fort Collins owned & operated since 1992
From Incident to Resolution: The Fleet Uninsured Motorist Claims Process
Understanding exactly what happens when you file a fleet Uninsured/Underinsured Motorist claim—step by step.
The Claims Process
- Report the Accident: Contact your insurance advisor or fleet manager right away with details and documentation. Prompt reporting ensures the fastest claim handling.
- Provide Documentation: Submit police reports, photos, and statements establishing fault and confirming the other driver’s lack of adequate coverage.
- Assessment & Authorization: A claims professional will evaluate property and injury damages, confirm policy terms, and approve next steps for repairs or medical claims.
- Resolution & Payment: Your business pays any deductible; insurance covers the remainder up to your selected limits. Reimbursement for repairs, medical costs, or lost use flows directly to your business.
What You Pay
Your deductible—commonly $500 to $1,500 per incident—is your share before insurance pays. Your premium covers continuous protection for all covered fleet vehicles. Higher deductibles can lower premiums, but ensure your business can manage that cash outlay if a claim happens.
Timeline
Simple property claims often resolve within one to two weeks, while complex multi-vehicle or serious injury cases may take several weeks or longer, especially if third-party details must be confirmed. Most fleet clients find the process straightforward and guided by experts. The key is prompt documentation—the faster you report, the faster you get back on the road.
The Real Cost of Going Without Uninsured/Underinsured Motorist Coverage
Understand the real financial impact: premium vs. the risk of an uninsured motorist hitting your fleet.
Minor Fender Bender
Annual Coverage Cost: $320
Scenario: A company van is rear-ended by an uninsured driver. Repair bill totals $4,100.
Without Coverage: $4,100 out of company funds
With Coverage: $500 deductible (plus annual premium)
Protection Value: $3,600+ protected in one incident
Employee Medical Costs
Annual Coverage Cost: $480
Scenario: Driver suffers moderate injuries after being hit by a car with state minimum insurance. Uninsured Motorist Coverage pays $18,000 beyond the at-fault driver’s limit.
Without Coverage: $18,000 (or more) in uncapped payroll and medical expenses
With Coverage: $1,000 deductible (plus annual premium)
Protection Value: Huge savings on direct and indirect costs
Multiple Fleet Vehicle Damage
Annual Coverage Cost: $870
Scenario: Three company trucks hit in a single chain-reaction accident caused by an uninsured driver. Losses total $58,000.
Without Coverage: $58,000 risk to your business
With Coverage: $1,500 deductible (plus premium)
Protection Value: Over $56,500 protected in a worst-case event
The Economic Reality
For most fleets, Uninsured/Underinsured Motorist Coverage costs $20–$70 per vehicle/month—often less than a tank of gas. One serious uninsured accident could cost $10,000–$50,000+ out of pocket, potentially threatening your business’s cash flow for years. The math is simple: this coverage pays for itself the first time you need it, and safeguards your financial stability over the long haul.
4 Costly Uninsured/Underinsured Motorist Coverage Mistakes to Avoid
Learn from others—avoid these common errors that can leave your fleet unprotected right when you need coverage most.
Assuming All Drivers Have Enough Insurance
Many fleet owners believe state-mandated liability coverage is enough and don’t account for uninsured or underinsured motorists. This gap can leave your business responsible for tens of thousands in repairs and employee injuries. Instead, review recent uninsured motorist statistics and make this protection a part of your fleet policy.
Underestimating Medical and Wage Loss Costs
It’s easy to focus on repairs and forget how expensive injuries and lost wages can be. Without proper coverage, these costs go straight to your bottom line. Confirm your policy’s bodily injury limits are high enough to cover real-world employee risks.
Choosing Deductibles Your Business Can’t Manage
Picking the highest deductible to save premium dollars sounds smart—until you face multiple deductibles at once. If you can’t cover these, your vehicles stay off the road and your business loses money. Balance savings with your fleet’s real cash reserves.
Forgetting to Update Coverage as Your Fleet Grows
As your business adds vehicles or takes on new geographic routes, your risk changes. Coverage gaps appear when fleet size or usage expands without a policy update. Always review uninsured/underinsured motorist coverage annually and after major changes.
Find answers to your most pressing insurance questions right here.
Explore Your Coverage Options
Discover the best insurance coverage tailored to your individual needs and protect what matters most.