When I was rear-ended recently by a hit-and-run driver, my insurance company denied coverage by my Uninsured Motorist coverage, stating that I had to prove that the other party was uninsured in order for that to apply. Obviously proving such for a h&r driver is impossible, making the coverage practically worthless and very misleading to policy holders who buy it. My question then is: Is that a standard insurance company fine print definition and exclusion, or just that of my insurance cos?

It will depend upon state laws and then the guidelines of the insurance company however many policies do state that uninsured motorist does not cover a hit and run driver or phantom driver since you cannot prove the driver was uninsured. Sometimes uninsured motorist bodily injury (UMBI) coverage will cover injuries from a hit and run without the driver being found while uninsured motorist property damage (UMPD) will require the uninsured driver be known and not a "phantom driver."

Bodily injuries from an accident can be claimed sometimes without a known uninsured driver while property damage cannot. It is harder to fake injuries from a crash caused by an unknown driver (the damage to the car and doctor's notes should back up the person's claim of a car accident injury) then it is to fake damage to your car. Without the uninsured driver being known for property damage claims people try to commit insurance fraud by claiming damages to their car that they caused on their own (backing into a pole, etc) be saying an unknown hit and run driver did it.

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According to the California Department of Insurance an uninsured motorist bodily injury policy (UMBI) policy should cover you and your passengers for bodily injury caused by a negligent uninsured motorist, a hit-and-run driver, or by a driver whose insurer is insolvent. They define UMPD as paying for damages to your automobile, set up to a limit, when caused by a negligent uninsured motorist. As you notice the CA DOI does not note a hit and run accident as something an UMPD policy should cover as it does for UMBI.

So the terms of an uninsured motorist property damage (UMPD) policy as well as state insurance laws governing this type of policy differ. Some insurance companies UMPD coverage allows for claims to be placed when an unknown person has hit your vehicle and left the scene of the accident, (a hit and run) while others require you to show proof that the person that struck your vehicle was uninsured.

In some states such as Louisiana a hit-and-run driver may be classified as uninsured motorists if there is a disinterested witness to the accident. With the witness stating they saw a vehicle, whose owner and operator cannot be identified, striking your car it should enough for the insurance company to take the claim.

With UMPD coverage, there are some insurance companies that will not provide coverage for property damage from a legally liable uninsured if the person is an unidentifiable motorist (e.g., a hit-and-run driver) so that is why it is important to check the terms of your policy and speak to your insurance agent about your coverages when setting up your policy so you are fully aware of what is and is not covered by your various coverages including UMBI and UMPD.

You should also be aware that many policies that do cover accidents with an unknown driver require notification of police within a specified time period if the accident is a hit and run. Some policies for uninsured motorist property damage and bodily injury state that there must be witnesses to the driver leaving the scene of the accident or the hit and run driver must be identified and found to be uninsured for a claim to be accepted.

Uninsured motorist coverages differ according to state laws and then within insurance laws the guidelines of an insurance company can differ but should be explained in the terms of your policy. So your insurance company denying your claim under your uninsured motorist coverage is not out of the ordinary.

It is important to read through the terms of your insurance policy and ask questions of your insurance agent if you are uncertain to what your coverages actually cover. Uninsured motorist is there mainly to protect you against actual uninsured drivers that are at-fault in an accident, not to cover hit and run accidents since this type of driver cannot actually be verified as an uninsured driver unless they are later found however some policies do cover hit and run policies.

The best way to find out if an insurer does cover hit and run accidents under UMPD and/or UMBI coverages is to ask the agent and read the terms of the car insurance policy. As for state insurance laws and what is required to be covered under uninsured motorist coverages, contact your state's insurance regulator's consumer division to find out specifics.