1. If your car has liability only or basic coverage, it would be covered for damage if hit by someone who has no insurance, or you are a victim of a hit-and-run accident.
2. If you have full coverage, including comprehensive and collision, the deductible is probably lower for Uninsured Motorist Property Damage (UMPD).
3. Paying out through UMPD if the other party has no insurance, the accident is automatically listed as not-at-fault. That may not mean much now, but when it comes time to shop around for better insurance, all the other companies will see it as non-fault and not hassle you for documents and proof the accident wasn’t your fault. If you let your company pay for the damage using collision coverage, the accident may require you to prove you were not at fault. That means asking for letters from your company and keeping documents for up to five years. It’s even more complicated when it’s a hit-and-run, as there is no one else to blame. Not all police departments will write up a report, giving you one less option for proof.
Bonus reason. UMPD is cheap. It’s about $10 - $20 for six months. Don’t let anyone talk you out of buying this valuable, although optional, benefit.