Uninsured Motorist Coverage: What It Covers, Cost & Why You Need It

Driving a car comes with several financial risks, and one of the most unexpected situations occurs when another driver causes an accident but does not have sufficient insurance to pay for the damage.

Imagine you are driving home when another vehicle hits your car. The other driver is responsible for the accident, but you discover that they do not have auto insurance. You may suddenly face medical expenses, lost income, and other financial difficulties.

This is where uninsured motorist coverage becomes important.

Uninsured motorist coverage is a type of auto insurance designed to protect eligible drivers and passengers when they are involved in an accident caused by an uninsured driver or certain hit-and-run motorists.

A related type of protection, called underinsured motorist coverage, can help when the responsible driver has insurance but does not carry enough coverage to pay for all eligible damages.

Whether you drive a new vehicle, an older car, or a family automobile, understanding these coverage options can help you make better insurance decisions.

In this guide, we explain how uninsured motorist insurance works, what it covers, the difference between UM and UIM, how much it may cost, and how to choose suitable protection.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage, commonly called UM insurance, protects eligible insured people against certain losses caused by another driver who does not have the required liability insurance.

It is generally included as an optional or required coverage in auto insurance policies, depending on the state.

For example, imagine another driver runs a red light and hits your vehicle. You suffer injuries and need medical treatment, but the other driver has no auto insurance.

Without uninsured motorist coverage, you may have to rely on your own health insurance, other applicable coverage, or personal savings to manage the expenses.

With suitable UM coverage, your insurance company may help pay eligible expenses resulting from the accident, subject to your policy limits and conditions.

Some policies also provide protection for certain hit-and-run accidents.

Uninsured motorist coverage can therefore provide an additional layer of financial protection when another driver cannot pay for the harm they caused.

What Is Underinsured Motorist Coverage?

Underinsured motorist coverage, commonly called UIM insurance, is designed for situations where the at-fault driver has auto insurance but does not have enough liability coverage to pay for all eligible damages.

Consider this example.

You are involved in a serious accident caused by another driver. The driver has liability insurance with a $25,000 bodily injury limit, but your eligible injury-related damages are considerably higher.

The other driver’s insurance may not provide enough money to cover the full amount.

Depending on your state and policy, underinsured motorist coverage may help pay eligible remaining damages.

It is important to remember that UIM coverage has its own limits, eligibility rules, and claim conditions.

The amount payable depends on the actual policy wording and how the applicable state handles other insurance payments.

Difference Between Uninsured and Underinsured Motorist Coverage

Although these two types of insurance sound similar, they protect against different situations.

Feature	Uninsured Motorist (UM)	Underinsured Motorist (UIM)
Responsible driver	Has no applicable insurance	Has insufficient insurance
Main purpose	Protects against uninsured drivers	Protects against inadequate liability limits
Hit-and-run accidents	May be covered	Generally not the main purpose
Medical expenses	May be covered	May be covered
Lost income	May qualify under bodily injury coverage	May qualify under bodily injury coverage
Limits	Based on your UM policy	Based on your UIM policy and state rules

Both types of insurance can provide important financial protection after accidents caused by other drivers.

What Are the Different Types of Uninsured Motorist Coverage?

Uninsured and underinsured motorist coverage may be divided into bodily injury and property damage protection.

Not every state or insurance company offers the same combination.

1. Uninsured Motorist Bodily Injury (UMBI)

Uninsured motorist bodily injury coverage protects eligible insured people when they suffer injuries in an accident caused by an uninsured driver.

Depending on the policy, covered expenses may include:

Medical bills.
Hospital expenses.
Rehabilitation costs.
Lost wages.
Certain additional injury-related damages.

For example, another driver without insurance crashes into your vehicle and causes injuries requiring medical treatment.

Your UMBI coverage may help pay eligible expenses.

Some policies also extend protection to passengers, resident family members, and insured people in certain other circumstances.

2. Underinsured Motorist Bodily Injury (UIMBI)

Underinsured motorist bodily injury coverage helps when an at-fault driver has insurance but their liability limits are insufficient for the eligible injury-related damages.

For example, imagine the responsible driver has a $30,000 bodily injury limit, but your covered injury damages exceed that amount.

Your UIM coverage may help with eligible losses above the responsible driver’s available insurance, subject to the applicable policy and state rules.

3. Uninsured Motorist Property Damage (UMPD)

Uninsured motorist property damage coverage may help pay for certain damage to your vehicle or other covered property when an uninsured driver causes an accident.

For example, another driver without insurance crashes into your parked car and damages its front bumper and engine.

If your policy includes applicable UMPD protection, it may help pay eligible repair costs.

Coverage conditions and limits vary considerably between states.

Some states also offer a collision deductible waiver instead of, or alongside, separate uninsured motorist property damage protection.

4. Underinsured Motorist Property Damage (UIMPD)

Underinsured motorist property damage coverage may provide protection when another driver has insurance but not enough property damage liability coverage to pay for your eligible vehicle damage.

Its availability and limits depend on your state and insurance policy.

In some situations, collision insurance may be another way to handle damage to your own vehicle.

Always compare the applicable deductibles and coverage conditions.

What Does Uninsured Motorist Coverage Cover?

Uninsured motorist coverage can provide several types of protection depending on the policy.

1. Medical Expenses

One of its most important benefits is protection against eligible medical expenses resulting from an accident caused by an uninsured driver.

These may include:

Emergency medical treatment.
Hospital expenses.
Doctor visits.
Rehabilitation.
Certain continuing medical expenses.

2. Lost Wages

Some uninsured motorist bodily injury policies cover eligible lost income resulting from accident-related injuries.

For example, if an uninsured driver injures you and you cannot work for several weeks, UM coverage may help compensate for eligible lost income.

3. Pain and Suffering

Depending on applicable state laws and policy conditions, uninsured and underinsured motorist bodily injury coverage may provide compensation for certain non-economic damages, including pain and suffering.

4. Passenger Injuries

Some UM policies also protect eligible passengers inside the insured vehicle.

The exact protection depends on the policy, insured-person definitions, and state requirements.

5. Certain Hit-and-Run Accidents

A hit-and-run accident occurs when a driver causes an accident and leaves without providing the required information or fulfilling legal responsibilities.

Some uninsured motorist policies cover qualifying bodily injury claims involving hit-and-run drivers.

However, state rules may require specific evidence of physical contact or prompt reporting to law enforcement.

Hit-and-run property damage coverage also varies.

Check your policy before assuming every hit-and-run loss qualifies.

What Does Uninsured Motorist Coverage Not Cover?

Uninsured motorist insurance provides valuable protection, but it does not cover every type of financial loss.

Common exclusions or limitations may include:

1. Damage Caused by a Driver Who Is Fully Insured

If another driver has sufficient liability coverage, a standard uninsured motorist claim may not apply.

The responsible driver’s liability insurance may instead handle the eligible claim.

2. Your Own At-Fault Accident

Uninsured motorist coverage is generally intended for situations involving another responsible driver who is uninsured or underinsured.

It does not normally replace collision coverage for your own at-fault vehicle damage.

3. Mechanical Problems

Mechanical failure, ordinary maintenance, and vehicle deterioration are generally outside the purpose of uninsured motorist coverage.

4. Damage Without a Qualifying Accident

Theft, hail, fire, and other non-collision vehicle losses are generally handled by comprehensive insurance rather than uninsured motorist coverage.

5. Claims Outside Policy Conditions

A claim may be limited or denied when the circumstances do not satisfy the policy’s requirements.

For example, some policies have strict accident-reporting, evidence, consent, or cooperation conditions.

6. Damages Above Your Coverage Limits

Uninsured motorist insurance has maximum coverage limits.

If your eligible losses exceed those limits, you may still face out-of-pocket expenses.

This is why selecting suitable coverage limits is important.

How Much Does Uninsured Motorist Coverage Cost?

The cost of uninsured motorist coverage depends on your state, insurance company, vehicle, driving history, coverage limits, and selected policy options.

There is no single nationwide price that applies to every driver.

Some insurance companies include UM and UIM together in one coverage package, while others show them as separate line items.

Your insurance quote may also depend on whether you select bodily injury coverage, property damage coverage, or both.

Factors That Affect UM and UIM Insurance Costs

1. State Requirements

Some states require uninsured or underinsured motorist coverage, while others require insurers to offer it to customers who may accept or reject it.

These rules can affect your available policy options.

2. Selected Coverage Limits

Higher UM and UIM limits generally provide greater financial protection but may increase your premium.

3. Driver’s Location

Insurance prices vary by state and ZIP code.

Local accident patterns, uninsured-driver rates, and insurance regulations may influence premiums.

4. Driving History

Previous accidents and driving violations can affect the overall cost of your auto insurance policy.

5. Vehicle Type

The make, model, value, and repair costs of your vehicle can influence certain property-related coverage prices.

6. Insurance Provider

Different insurers use different underwriting methods and pricing systems.

This is why comparing quotes from multiple companies can help you find competitive rates.

How Much Uninsured Motorist Coverage Should You Get?

Choosing the right uninsured motorist coverage limits requires understanding your possible financial exposure.

Many insurance companies offer UM and UIM limits that correspond to available bodily injury liability limits.

For example, a policy might provide:

$25,000 per person.
$50,000 per accident.

This means the policy may provide up to $25,000 for an eligible person’s injury-related claim, with a total accident limit of $50,000, subject to policy terms.

Some drivers choose higher limits to obtain additional financial protection.

Consider these factors when selecting your coverage:

Your household income.
Your financial assets.
Your health insurance arrangements.
Your potential medical expenses.
Your state’s minimum and available limits.
Your ability to manage unexpected financial losses.

If your state allows you to choose higher UM and UIM limits, compare the premium difference before deciding.

Do not automatically select the lowest available coverage simply to reduce your monthly insurance bill.

Is Uninsured Motorist Coverage Required by Law?

Uninsured motorist insurance requirements differ between US states.

Some states require drivers to carry certain UM or UIM protections.

Other states require insurance companies to offer the coverage, while allowing policyholders to reject it under specific procedures.

For example, state insurance rules may require written acceptance or rejection of certain optional coverage.

The National Association of Insurance Commissioners explains that uninsured and underinsured motorist requirements vary across jurisdictions.

Drivers should check the current laws of their own state instead of relying on a nationwide assumption.

What About States That Do Not Require UM Coverage?

Even when uninsured motorist coverage is not mandatory, drivers may still be able to purchase it voluntarily.

This can be useful because accidents involving uninsured or inadequately insured drivers can create significant financial expenses.

Before rejecting optional coverage, consider how you would pay for medical expenses or other eligible losses if the responsible driver could not afford compensation.

Why Is Uninsured Motorist Coverage Important in 2026?

Uninsured and underinsured drivers remain a significant issue in the US auto insurance market.

According to the Insurance Research Council’s report published on February 18, 2025, the following figures were reported for 2023:

15.4% of motorists were uninsured.
18.0% of motorists were underinsured.
33.4% were either uninsured or underinsured.

The report used information from 17 insurance companies representing approximately 55% of the US private passenger auto insurance market.

It also found substantial state differences.

For example:

Mississippi had the highest estimated uninsured motorist rate at 28.2%.
New Mexico followed at 24.1%.
Maine had the lowest estimated rate at 5.7%.

These results show why uninsured and underinsured motorist protection deserves consideration even in states where the coverage is optional.

The figures describe 2023 driving conditions and should not be interpreted as a live 2026 estimate.

Uninsured Motorist Coverage vs Collision Insurance

Drivers sometimes confuse uninsured motorist property damage coverage with collision insurance.

Although both may help pay for vehicle damage after an accident, they are different types of protection.

Feature	Uninsured Motorist Coverage	Collision Insurance
Uninsured driver causes accident	Yes, subject to policy	May cover eligible vehicle damage
At-fault collision	Generally not the main purpose	Yes
Vehicle hits a tree	No	Yes
Hit-and-run	May apply under policy conditions	May cover eligible damage
Vehicle theft	No	No
Flood damage	No	No
Main purpose	Protection from uninsured drivers	Protection from covered collisions

Collision insurance generally protects your own vehicle regardless of whether another driver has sufficient insurance, subject to the policy.

UM property damage may offer a different route for eligible losses caused by uninsured motorists.

Some drivers may benefit from having both.

What Should You Do After an Accident With an Uninsured Driver?

An accident involving an uninsured driver can be stressful, but taking the right steps can help protect your interests.

Step 1: Check for Injuries

Make sure everyone involved is safe.

Call emergency services when necessary and seek medical attention for injuries.

Step 2: Contact the Police

Report the accident according to state law and the circumstances.

A police report may help document the incident and identify the other driver.

Step 3: Collect Information

Obtain the other driver’s:

Name.
Contact details.
Vehicle registration.
Driver’s license information.
Available insurance information.

Step 4: Photograph the Accident Scene

Take photographs of the vehicles, damage, road conditions, and surrounding area when it is safe to do so.

Step 5: Contact Your Insurance Company

Notify your insurer promptly.

Explain that the other driver appears to have no insurance or insufficient coverage.

Step 6: Ask About UM and UIM Coverage

Request information about your available coverage, applicable limits, deductible, and claim requirements.

Step 7: Keep Medical and Repair Records

Save relevant medical bills, repair estimates, receipts, and documents related to lost income.

Step 8: Cooperate With the Claims Investigation

Follow the insurer’s instructions and provide accurate information.

Avoid signing settlements or releases before understanding their consequences.

How to Choose the Right Uninsured Motorist Policy

Before purchasing or changing your auto insurance coverage, consider these important steps.

1. Check Your State’s Requirements

Determine whether UM or UIM coverage is mandatory or optional in your state.

2. Review Your Existing Policy

Check whether your policy already includes uninsured motorist bodily injury or property damage protection.

3. Compare Coverage Limits

Evaluate the available limits and determine whether they are appropriate for your financial situation.

4. Understand Policy Exclusions

Review the rules governing hit-and-run claims, passengers, resident family members, and vehicle use.

5. Compare Multiple Quotes

Ask several licensed insurance providers for quotes.

Compare UM and UIM coverage rather than looking only at the overall car insurance premium.

6. Review Your Coverage Annually

Changes in your location, income, driving habits, and family circumstances may affect your insurance needs.

Frequently Asked Questions (FAQs)

1. What is uninsured motorist coverage?

Uninsured motorist coverage protects eligible insured people against certain losses caused by an uninsured driver. It may cover bodily injuries and, where available, certain vehicle damage.

2. What is the difference between UM and UIM insurance?

UM insurance generally applies when the responsible driver has no applicable insurance. UIM insurance applies when the responsible driver has insurance but insufficient limits to pay all eligible damages.

3. Does uninsured motorist coverage pay for medical bills?

Uninsured motorist bodily injury coverage may help pay eligible medical expenses when you are injured by an uninsured driver, subject to policy limits and conditions.

4. Does uninsured motorist coverage protect passengers?

Many policies extend certain UM protections to eligible passengers and insured individuals. The exact conditions depend on your state and insurance contract.

5. Does uninsured motorist coverage cover hit-and-run accidents?

Some UM policies cover qualifying hit-and-run accidents, particularly bodily injury claims. However, states and insurers may impose specific evidence and reporting requirements.

6. Is uninsured motorist coverage required in every US state?

No. State requirements vary. Some states require UM or UIM coverage, while others require insurers to offer it and permit eligible policyholders to reject it.

7. How much does uninsured motorist coverage cost?

There is no universal national price. Your premium depends on your state, coverage limits, vehicle, driving history, and insurer. Request personalized quotes to compare actual prices.

8. Does uninsured motorist coverage pay for car repairs?

Uninsured motorist property damage coverage may pay for eligible vehicle repairs. However, it is not available in the same form in every state. Collision insurance may also cover qualifying vehicle damage.

9. Can I have uninsured motorist and collision insurance together?

Yes. They provide different protections. Collision generally covers eligible damage to your own vehicle after a covered collision, while uninsured motorist coverage addresses qualifying losses caused by uninsured drivers.

10. Is underinsured motorist coverage worth it?

It may provide valuable additional financial protection when an at-fault driver carries inadequate liability limits. Its usefulness depends on your financial exposure, state rules, and available policy options.

Final Thoughts

Uninsured motorist coverage is an important consideration for drivers who want additional financial protection against accidents caused by people without adequate insurance.

Even when insurance is legally required, some drivers continue to operate vehicles without sufficient coverage.

A suitable UM or UIM policy may help protect you against eligible medical expenses, lost income, and certain property damage losses.

Before purchasing coverage, review your state’s requirements, compare available limits, understand policy exclusions, and evaluate how much financial protection your household needs.

The best auto insurance policy is not simply the one with the lowest premium. It is the one that offers suitable protection when an unexpected accident happens.

Disclaimer: This article is intended for general educational and informational purposes only. It does not constitute legal, financial, or insurance advice. UM and UIM coverage, premiums, exclusions, and legal requirements vary by insurer, policy, and state. Always review the actual insurance contract and consult a qualified insurance professional before making coverage decisions.