Do Both Parties Have to Waive Uninsured Motorist Property Damage Coverage?

When people ask whether both parties must waive uninsured motorist property damage (UMPD) coverage, they're usually asking the wrong question — or at least a broader one than they realize. The answer depends almost entirely on which state you're in, how UMPD is structured under that state's law, and what your specific policy says. Here's what's actually going on with this coverage type and why the "both parties" framing matters.

What Uninsured Motorist Property Damage Coverage Actually Does

UMPD is a type of auto insurance coverage that pays for damage to your vehicle when the at-fault driver has no liability insurance — or, in some states, when a hit-and-run occurs and that driver can't be identified.

It's distinct from:

• Collision coverage, which pays for your vehicle damage regardless of fault (but typically carries a deductible)
• Uninsured motorist bodily injury (UMBI), which covers medical costs and related losses when an uninsured driver injures you
• Underinsured motorist property damage (UIMPD), which applies when the at-fault driver has insurance but not enough to cover your property losses

UMPD specifically fills the gap when the other driver's liability coverage simply doesn't exist.

How UMPD Waiver Requirements Actually Work 🛡️

In many states, insurers are required by law to offer UMPD as part of any auto policy that includes liability coverage. When an insurer is required to offer a coverage, state law typically requires the policyholder — the person buying the insurance — to formally reject or waive it if they don't want it.

This waiver is generally a written, signed document. The reasoning: if you weren't explicitly told you could have this protection and given the chance to decline it, the insurer can't simply leave it out.

So where does the "both parties" idea come from?

In some states, the waiver question applies symmetrically to both drivers in a household who are listed on the policy, or to a married couple where both spouses are named insureds. Some states require that all named insureds on a policy sign off on the rejection. Others require only the primary policyholder's signature.

The short version: it is the policyholder(s) who waive UMPD — not both parties to an accident. The other driver in a crash has no role in whether your UMPD coverage exists.

Why State Law Shapes Everything Here

UMPD availability and waiver rules vary significantly by jurisdiction. Some states don't require UMPD to be offered at all. Others mandate it unless waived. Still others bundle it with UMBI so the two can't be separated.

Because this varies so much, a waiver that's legally required in one state may be entirely irrelevant in another.

The Named Insured Question

Some states specifically address what happens when a policy has multiple named insureds — for example, two spouses. In those jurisdictions, a rejection of UMPD signed only by one named insured may not be valid for the other. Courts in several states have found that waivers are only effective when all named insureds on the policy have signed them.

This is where the "both parties" framing often originates: it's less about two drivers in a crash and more about two named insureds on the same policy.

If only one person waived UMPD but the other never signed, there's a legal argument in some states that the coverage was never validly rejected and may still apply.

What a UMPD Claim Actually Looks Like ⚠️

When you file a UMPD claim:

1. You file with your own insurer, not the at-fault driver's (since that driver has no insurance)
2. You typically need to show the at-fault driver was uninsured — police reports, confirmation from the DMV or state database, or the driver's own admission often factor in
3. A deductible may apply, though some states cap the UMPD deductible or waive it in certain circumstances
4. Subrogation may come into play: your insurer pays you, then may pursue the uninsured driver to recover what it paid

UMPD generally does not cover your injuries — that's UMBI territory. It's specifically tied to vehicle and property damage.

What UMPD Doesn't Cover

Common exclusions include:

• Underinsured drivers (a separate coverage type applies)
• Hit-and-run accidents in states that exclude them from UMPD
• At-fault accidents where you caused the damage
• Collision with an object that isn't another vehicle driven by an uninsured motorist

The Gap Between General Rules and Your Situation

Whether UMPD applies to your claim, whether it was validly waived, whether the waiver required multiple signatures, and whether the coverage interacts with other parts of your policy are all questions that hinge on your state's specific statutes, your policy language, and the facts of what happened.

A waiver signed years ago, a policy issued in a different state, a household with multiple named insureds, or an accident involving a partially insured driver can all change the analysis in ways that general information can't resolve.