February 24, 2026 1:00 PM, EST
Key Takeaways:
All fleet owners recognize the significance of physical damage insurance. However, one often-overlooked area is Uninsured Motorist Property Damage (UMPD) and Underinsured Motorist Property Damage (UIMPD). With an increasing number of uninsured and underinsured drivers on the road—about 1 in 3 in 2023 according to the Insurance Research Council—these coverages can be crucial for a trucking business’s timely recovery from accidents.
An Escalating Issue on American Roads
Data from the IRC shows that nearly 1 in 7 drivers in the U.S. is completely uninsured, with figures reaching 1 in 4 in certain states. Even insured drivers often have only the minimum coverage required by law, which is typically insufficient for the costs that trucking companies face, such as vehicle repairs, reduced value, downtime, and other related expenses.
For fleets, these expenses result in substantial financial exposure. If one of your trucks is involved in an accident with an underinsured vehicle, the fleet bears the costs for repairs, towing, storage, and lost income. Without UMPD or UIMPD coverage on the affected unit, recouping those losses is unlikely.
Functions of UM and UIM Property Damage Coverage
UMPD compensates for damage to commercial vehicles when the at-fault driver lacks liability coverage. UIMPD provides coverage when the other driver’s insurance is insufficient to cover losses.
Depending on the specifics of your policy, property damage coverage may assist with:
- Repairing or replacing damaged vehicles
- Towing, cleanup, and recovery expenses
- Diminished value post-repair
- Lost income and rental costs while vehicles are out of service
- Out-of-pocket costs related to incidents, such as returning drivers home or transferring cargo
Importance for Fleets
For fleets of all sizes, a single accident involving an uninsured driver can disrupt operations significantly. Inoperable units lead to missed deliveries, frustrated clients, and idle drivers. The cost of a truck being inactive—even for just a few days—can quickly eclipse the expense of additional property damage insurance coverage.
Through my legal practice, I’ve witnessed numerous trucking companies unprepared for accidents involving drivers with little or no insurance. The disappointment is palpable: although the fleet was not at fault, they still face the financial burden. UMPD and UIMPD coverage can help alleviate that imbalance and enable faster recovery for your trucks and business.
Policy Review Recommendations
Consult with your insurance agent or risk manager to evaluate your coverage. Not all states or policies automatically include UMPD or UIMPD, and coverage limits can vary. Ensure that coverage is comprehensive across all fleet vehicles and that limits align with your specific risks. It is also wise to incorporate these coverages with solid downtime recovery strategies to prepare for worst-case scenarios.
Securing Your Fleet’s Future
The trucking industry is fraught with uncertainties—don’t allow another driver’s lack of insurance to add to them. UMPD and UIMPD aren’t mere add-ons on your policy but essential tools for protecting your assets and business’s profitability. By planning ahead, understanding your policies, and securing appropriate coverage, fleet owners can ensure smooth operations, regardless of who else is on the road.
Kelsea Eckert is an attorney specializing in assisting truckers and fleet owners with insurance and downtime claims.
