What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage protects you when you're hit by a driver who has no car insurance. It also covers hit-and-run accidents where the at-fault driver flees the scene and can't be identified.
This coverage is critical because approximately 13% of U.S. drivers are uninsured, according to the Insurance Research Council. In some states, the rate is much higher — over 20% in Mississippi, Michigan, and New Mexico.
Without uninsured motorist coverage, you'd be left paying for your own medical bills and vehicle repairs out of pocket if an uninsured driver causes an accident. Since most uninsured drivers also lack the financial resources to pay for damages personally, UM coverage is often your only recourse.
Data point: The national uninsured motorist rate is 13%, but it varies widely by state. Florida and New Mexico have rates above 20%, while Massachusetts and New York have rates below 5%.
Types of Uninsured Motorist Coverage
Uninsured motorist coverage typically comes in two forms:
Uninsured motorist bodily injury (UMBI): Pays for your medical bills, lost wages, pain and suffering, and other injury-related expenses when an uninsured driver hits you. UMBI also covers passengers in your vehicle.
UMBI limits are expressed like liability limits — for example, 100/300 means $100,000 per person and $300,000 per accident.
Uninsured motorist property damage (UMPD): Pays for damage to your vehicle when an uninsured driver causes an accident. Some states include hit-and-run vehicle damage under UMPD, while others require collision coverage for hit-and-runs.
UMPD is less common and not available in all states. Many states allow you to use your collision coverage instead, which may have a lower deductible.
Pro tip: If you have collision coverage, UMPD is often redundant. Check your state's rules and your policy to see if you need both.
What Is Underinsured Motorist Coverage?
Underinsured motorist (UIM) coverage is closely related to UM coverage but covers a different scenario: when the at-fault driver has insurance, but their liability limits aren't high enough to cover your damages.
For example, imagine you're seriously injured in an accident caused by a driver with only $25,000 in bodily injury liability coverage. Your medical bills total $75,000. Their insurance pays the $25,000 maximum, and your UIM coverage pays the remaining $50,000 (up to your UIM limit).
UIM coverage is especially important because many drivers carry only state minimum liability limits, which are often dangerously low. In some states, minimums are as low as $15,000 per person — far less than the cost of a serious injury.
UM vs. UIM: Some states bundle UM and UIM together as a single coverage. Others offer them separately, allowing you to carry different limits for each.
What Does Uninsured Motorist Coverage Cover?
Uninsured motorist bodily injury (UMBI) typically covers:
- Medical bills and hospital expenses
- Lost wages if you miss work due to injuries
- Rehabilitation and physical therapy
- Pain and suffering
- Funeral costs in fatal accidents
- Injuries to passengers in your vehicle
Uninsured motorist property damage (UMPD) covers:
- Damage to your vehicle caused by an uninsured driver
- Hit-and-run vehicle damage (in some states)
- Damage to personal property in your car at the time of the accident
What UM does NOT cover: Damage you cause to your own vehicle in a single-car accident (that's collision coverage), accidents where you are at fault, or damage to someone else's property (that's your liability coverage).
Is Uninsured Motorist Coverage Required?
Whether UM coverage is required depends on your state. Roughly half of U.S. states require uninsured motorist coverage, while the other half make it optional but require insurers to offer it.
States that require UM coverage: Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin.
States where UM is optional but must be offered: In these states, insurers must offer UM coverage, but you can decline it in writing. Examples include California, Florida, Ohio, Pennsylvania, and Texas.
States where UIM is separate: Some states require UM but make UIM optional, or vice versa. Check your state's requirements to ensure you have complete protection.
Important: Even if UM coverage is optional in your state, declining it is rarely a good idea. The cost is low relative to the protection it provides.
How Much Uninsured Motorist Coverage Do You Need?
Most insurance experts recommend matching your UM/UIM limits to your liability limits. If you carry 100/300/100 in liability coverage, carry the same in uninsured motorist coverage.
Here's why: If you believe you need $300,000 in liability protection because a serious accident could cause that much damage, you also need $300,000 in UM protection in case someone without insurance causes that same level of damage to you.
Minimum recommended limits: 100/300 for UMBI (the same as 100/300/100 liability). Consider higher limits if you have significant assets or high-value vehicles.
State minimums are often too low. Many states require only $25,000 per person in UM coverage, which is far less than the cost of a serious injury. Always consider carrying higher limits than the state minimum.
How Much Does Uninsured Motorist Coverage Cost?
Uninsured motorist coverage is one of the most affordable coverages relative to the protection it provides. On average, UM/UIM coverage adds $40–$150 per year to your premium, depending on your state, coverage limits, and driving history.
In states with high uninsured driver rates (like Florida, New Mexico, or Mississippi), UM coverage may cost slightly more. In states with low uninsured rates (like Massachusetts or New York), it's often less expensive.
Because UM coverage protects you from potentially catastrophic out-of-pocket costs, the modest premium is almost always worth it — especially compared to the cost of liability, collision, or comprehensive coverage.
Pro tip: Increasing your UM limits from 50/100 to 100/300 typically costs only $20–$50 more per year — a small price for significantly better protection.
How Do Uninsured Motorist Claims Work?
Filing an uninsured motorist claim is similar to filing any other car insurance claim, with a few key differences:
Step 1: Report the accident. Call the police and file an accident report, even if the other driver has no insurance or flees the scene. A police report is often required to file a UM claim.
Step 2: Notify your insurer. Contact your insurance company as soon as possible and let them know you were hit by an uninsured or underinsured driver.
Step 3: Provide documentation. Your insurer will need the police report, medical records (if applicable), repair estimates, and any other evidence of the accident and your damages.
Step 4: Your insurer investigates. Your insurer will verify that the at-fault driver was uninsured or underinsured and that you meet the requirements for a UM claim.
Step 5: Settlement or arbitration. Most UM claims are settled through negotiation. If you and your insurer can't agree on the value of your claim, the dispute may go to arbitration (a neutral third party decides the outcome).
Important: Unlike liability claims where you're filing against another driver's insurance, UM claims are filed with your own insurance company. Your insurer pays the claim and may later try to recover costs from the at-fault driver.
Uninsured Motorist vs. Collision Coverage
Many drivers wonder whether they need both uninsured motorist property damage (UMPD) and collision coverage. Here's how they differ:
UMPD: Covers vehicle damage caused by an uninsured or hit-and-run driver. Available only in some states. May have a lower deductible than collision (often $200–$300 or no deductible).
Collision: Covers vehicle damage from any accident, regardless of who is at fault or whether the other driver has insurance. Required by lenders if you have a loan or lease. Typically has a $500–$1,000 deductible.
Which do you need? If you have collision coverage, UMPD is often redundant. Check your state's rules and compare deductibles. In some states, UMPD has no deductible, making it useful even if you have collision.
Common Scenarios Involving Uninsured Motorist Coverage
Scenario 1: You're hit by an uninsured driver. Your uninsured motorist bodily injury (UMBI) coverage pays for your medical bills, lost wages, and pain and suffering. If you have UMPD, it pays for vehicle damage. If you don't have UMPD but have collision coverage, collision pays for vehicle repairs.
Scenario 2: You're hit by a hit-and-run driver. UMBI covers your injuries. In most states, UMPD or collision covers vehicle damage. A police report is usually required.
Scenario 3: The at-fault driver's limits are too low. Their insurance pays up to their limits, and your underinsured motorist (UIM) coverage pays the remainder (up to your UIM limit).
Scenario 4: You're hit while walking or biking. UMBI covers your injuries even if you're not in a vehicle at the time of the accident. This is an often-overlooked benefit.
Frequently Asked Questions
Uninsured motorist coverage pays for your medical bills, lost wages, and vehicle damage when you're hit by a driver who has no car insurance or flees the scene (hit-and-run). About 13% of U.S. drivers are uninsured, making this coverage essential.
It depends on your state. About half of U.S. states require UM coverage, while others make it optional but require insurers to offer it. Even if it's optional in your state, most experts recommend carrying it.
Uninsured motorist (UM) covers accidents with drivers who have zero insurance. Underinsured motorist (UIM) covers accidents where the at-fault driver has insurance but not enough to cover your damages. Both are important for complete protection.
Yes, in most states. Uninsured motorist bodily injury (UMBI) covers injuries from hit-and-runs. Some states also extend uninsured motorist property damage (UMPD) to hit-and-run vehicle damage. A police report is typically required.
UM/UIM coverage typically adds $40–$150 per year to your premium, depending on your state and coverage limits. It's one of the most affordable coverages relative to the protection it provides.
Most experts recommend matching your UM/UIM limits to your liability limits. If you carry 100/300/100 in liability, carry the same in uninsured motorist coverage. State minimums are often too low to provide adequate protection.