What Is Uninsured and Underinsured Motorist Coverage?

Understanding the difference between uninsured and underinsured motorist coverage is crucial for protecting yourself financially on the road. These two coverage types work together to shield you from paying substantial out-of-pocket costs when other drivers lack adequate insurance.

Uninsured motorist (UM) coverage protects you when you're involved in an accident with a driver who has no insurance whatsoever. This includes hit-and-run situations where the at-fault driver flees the scene. With 15.4% of U.S. drivers uninsured as of 2023—up from 11.6% in 2017—the likelihood of encountering an uninsured driver has never been higher. Rising insurance costs are pushing more drivers off coverage entirely.

Underinsured motorist (UIM) coverage steps in when the at-fault driver has some insurance, but their policy limits aren't sufficient to cover your expenses fully. In 2023, roughly one in three drivers was either uninsured or underinsured, meaning the chances of encountering a driver without adequate coverage are significant.

These coverages work differently than personal injury protection car insurance, which pays regardless of fault. UM/UIM coverage only applies when another driver is responsible for the accident.

Understanding the Four Types of UM/UIM Coverage

When shopping for uninsured and underinsured motorist coverage, you'll encounter four distinct coverage types. Each serves a specific purpose and protects different aspects of your financial well-being after an accident.

UMBI: Uninsured Motorist Bodily Injury

UMBI coverage pays for medical expenses, lost wages, pain and suffering, and funeral costs for you and your passengers when hit by an uninsured driver. Unlike medical payments coverage, UMBI typically has no deductible and covers a broader range of damages including pain and suffering.

This coverage extends to hit-and-run accidents where the driver cannot be identified, as well as situations where you're struck as a pedestrian by an uninsured motorist. Coverage limits typically mirror your liability car insurance explained coverage costs amounts, such as $100,000 per person and $300,000 per accident.

UMPD: Uninsured Motorist Property Damage

UMPD coverage specifically pays for repairs to your vehicle when an uninsured driver damages your car. This coverage differs from collision insurance explained what it covers in that it only applies when the at-fault driver has no insurance.

Some states like California limit UMPD to $3,500, while others offer higher limits. Many states don't offer UIMPD at all, making UMPD your only property damage option beyond collision coverage.

UIMBI: Underinsured Motorist Bodily Injury

UIMBI coverage fills the gap when the at-fault driver's insurance isn't sufficient to cover your medical bills, lost wages, and pain and suffering. This coverage pays after the at-fault driver's policy limits are exhausted.

For example, if you have $100,000 in medical expenses but the at-fault driver only carries $30,000 in liability coverage, your UIMBI would pay the remaining $70,000 (minus the $30,000 already paid). This makes UIMBI crucial given that many states require only minimum liability limits that are often insufficient for serious accidents.

UIMPD: Underinsured Motorist Property Damage

UIMPD coverage works similarly to UIMBI but applies to vehicle repairs instead of medical costs. When the at-fault driver's property damage liability falls short of your repair costs, UIMPD covers the difference.

UIMPD is less common than other UM/UIM coverage types and isn't available in all states. If you carry comprehensive car insurance explained and collision coverage with reasonable deductibles, UIMPD may be redundant.

States That Require Uninsured Motorist Coverage

State requirements for uninsured motorist coverage vary significantly across the United States. Approximately 22 states plus Washington, D.C. mandate some form of UM coverage, though the specific requirements differ based on coverage type and limits.

States Requiring UMBI Coverage

The following states require uninsured motorist bodily injury (UMBI) coverage: Connecticut, District of Columbia, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin.

In these states, insurers must include UMBI in your policy unless you explicitly reject it in writing. The required minimum limits vary by state—for example, Maryland requires $30,000 per person and $60,000 per accident, while Vermont mandates higher minimums of $50,000 per person and $100,000 per accident. North Carolina updated its minimums to $50,000/$100,000 effective July 1, 2025, matching its new liability limits.

States Requiring UMPD Coverage

Fewer states require uninsured motorist property damage (UMPD) coverage. These include: District of Columbia, Maryland, New Hampshire, New Jersey, North Carolina, Rhode Island, South Carolina, Vermont, Virginia, and West Virginia.

North Carolina's update effective July 1, 2025, also raised minimum UM limits to match its new $50,000/$100,000 liability requirements and now allows drivers to stack UM coverage from both their own policy and the at-fault driver's policy for added protection.

States Where Coverage Is Optional

In the remaining states, UM/UIM coverage is optional but highly recommended. Even when not required, insurers must offer these coverages to consumers. You can decline coverage in writing, but doing so means accepting significant financial risk.

States with high uninsured driver rates make UM coverage particularly valuable. Mississippi leads the nation with 28.2% of drivers uninsured, followed by New Mexico at 24.1% and the District of Columbia at 23.1%. If you live in or frequently travel through these areas, purchasing UM/UIM coverage provides critical protection.

Understanding your state's requirements helps when comparing best cheap car insurance options 2026, as mandatory coverages affect your baseline premium. You can also explore an uninsured underinsured motorist coverage explained guide for a deeper breakdown of stacked vs. unstacked options.

How Much Does Uninsured Motorist Coverage Cost?

One of the most appealing aspects of uninsured motorist coverage is its affordability. Despite providing substantial financial protection, UM/UIM coverage adds minimal cost to your car insurance premium.

Average Annual Costs

The median cost for uninsured motorist bodily injury (UMBI) coverage is approximately $50 per year, while uninsured motorist property damage (UMPD) adds about $38 annually. Combined, this totals roughly $90 per year or just $3–6 per month added to your premium.

Underinsured motorist coverage, typically bundled with UM as UM/UIM, costs a similar amount—around $50–$75 annually for combined bodily injury and property damage protection. For context, national full coverage car insurance now averages $2,340 annually as of early 2026, meaning UM/UIM adds only a fraction to your total premium.

Factors Affecting Your Cost

Several factors influence how much you'll pay for UM/UIM coverage:

Coverage limits: Higher limits increase costs but provide better protection. A policy with $100,000/$300,000 limits costs more than one with $25,000/$50,000 limits, though the difference remains modest—often $10–20 more per year for substantially higher protection.

Location: Your zip code significantly impacts premiums. Areas with high uninsured driver rates, like Mississippi (28.2% uninsured) or Florida, typically have higher UM coverage costs than states with lower uninsured rates.

Driving record: A clean driving history helps keep UM/UIM premiums low, while accidents and violations increase costs across all coverage types.

Insurance company: Rates vary significantly by insurer. When comparing quotes, look at the best auto insurance companies 2026 and ensure you're comparing identical coverage limits for accurate cost comparisons.

The remarkably low cost makes UM/UIM coverage one of the best values in auto insurance. For about the price of a fast-food meal each month, you gain protection against potentially devastating financial losses from uninsured drivers.

How to File an Uninsured Motorist Claim

Knowing how to properly file an uninsured motorist claim ensures you receive the full benefits of your coverage. The claims process differs slightly from standard accident claims and requires specific documentation.

Immediate Steps at the Accident Scene

Call 911 immediately to report the accident and request police response. A police report is essential for UM claims, particularly in hit-and-run situations. Law enforcement documentation helps verify the accident occurred and that the other driver was uninsured.

Document everything thoroughly. Take photos of vehicle damage, the accident scene, debris, skid marks, and any visible injuries. Capture the license plate of the other vehicle if possible. If witnesses are present, collect their names, phone numbers, and statements.

Exchange information with the other driver if they remain at the scene. Get their name, contact information, driver's license number, and insurance information (or note that they have none). Never admit fault or make statements about the accident beyond factual descriptions.

For hit-and-run accidents, note the direction the vehicle fled, a description of the vehicle and driver, and any identifying features. Most UM policies require evidence of physical contact with the fleeing vehicle to approve claims.

Notifying Your Insurance Company

Contact your insurer promptly—ideally within 24 to 72 hours, depending on your policy terms. Delays in reporting can complicate claims or even result in denial. Some states like New York set a 30-day deadline for UM claim notification, so always check your policy and act quickly. Provide your claim representative with all documentation you collected at the scene.

Your insurer will investigate whether the other driver truly was uninsured. This may involve checking state databases, contacting the other driver, or verifying information with law enforcement. The investigation typically takes several days to a few weeks.

The Claims Process

Once your insurer confirms the driver was uninsured or underinsured, they'll evaluate your damages. For bodily injury claims, this includes:

• Medical bills and treatment costs
• Lost wages from missing work
• Pain and suffering
• Future medical expenses for ongoing treatment
• Permanent disability or disfigurement

For property damage claims, the insurer will assess repair costs or the vehicle's actual cash value if totaled. Keep in mind that car insurance deductibles complete guide explains how deductibles work—UMBI typically has no deductible, but UMPD may require one.

Settlement and Payment

Your insurer will make a settlement offer based on their evaluation. For straightforward claims with clear damages, this process moves quickly. Complex claims involving serious injuries, disputed liability, or high medical costs may require negotiation or legal representation.

If you disagree with the settlement offer, you can negotiate or hire an attorney to advocate for fair compensation. Your UM/UIM policy is a contract with your own insurance company, making the process generally smoother than dealing with another driver's insurer.

Understanding how much does insurance go up after accident helps you make informed decisions about filing claims versus paying out of pocket for minor damages.

Why Uninsured Motorist Coverage Is Essential

Given the statistics on uninsured drivers and the affordability of UM/UIM coverage, purchasing this protection makes financial sense for nearly every driver. The coverage shields you from potentially devastating financial consequences from accidents with inadequately insured motorists.

The Alarming Statistics

15.4% of U.S. drivers were uninsured in 2023, representing more than one in seven drivers on the road. This percentage has steadily increased from 11.6% in 2017 to 14% in 2022, driven largely by rising insurance costs that push budget-stretched drivers to go without coverage.

State variations are dramatic. Mississippi leads with 28.2% uninsured drivers, while New Mexico has 24.1% and the District of Columbia has 23.1%. Even states with lower rates still have thousands of uninsured motorists on the road at any given time.

Financial Risks Without UM/UIM Coverage

Without uninsured motorist coverage, you face several serious financial risks:

Out-of-pocket medical expenses: A serious accident can generate $50,000–$100,000 or more in medical bills. If the at-fault driver has no insurance, you're responsible for these costs without UM coverage.

Lost wages: Injuries may prevent you from working for weeks or months. UMBI covers lost income that health insurance simply won't replace.

Vehicle repair costs: If an uninsured driver totals your vehicle, you could lose thousands in vehicle value without UMPD coverage. Collision coverage helps, but you'll still pay your deductible and may not recover it.

Pain and suffering: Unlike health insurance, UM coverage compensates you for pain and suffering, emotional distress, and reduced quality of life—damages that can significantly increase claim value.

Hit-and-Run Protection

UM coverage is particularly valuable for hit-and-run accidents. When a driver flees the scene, you typically have no way to recover damages from them directly. Your UM policy treats the unknown driver as uninsured, providing coverage for both injuries and property damage.

However, most policies require evidence of physical contact with the fleeing vehicle. Document the accident scene thoroughly, file a police report immediately, and notify your insurer promptly to maximize your chances of claim approval.

Recommended Coverage Limits

Insurance experts consistently recommend matching your UM/UIM limits to your liability coverage limits. If you carry 100/300/100 liability coverage, your uninsured motorist coverage should mirror those amounts. Learn more about structuring your overall policy in our full coverage car insurance explained guide.

Minimum recommended limits are $100,000 per person and $300,000 per accident for bodily injury. Many professionals suggest even higher limits—$250,000/$500,000 or more—particularly in areas with high uninsured driver rates or if you have significant assets to protect. State minimums, such as California's $30,000 per person, often fall far short of real-world injury costs.

Consider these factors when choosing limits:

• Healthcare costs: Medical expenses for serious injuries quickly exceed minimum coverage limits. Higher UM limits provide better protection.
• Your assets: Higher limits protect your savings and property if you need to pursue compensation beyond a driver's policy.
• Family coverage: UM/UIM covers all passengers in your vehicle. If you regularly transport family members, higher limits protect everyone.
• 2025 state changes: California, Utah, Virginia, and North Carolina all updated minimum coverage requirements in 2025—review your policy to ensure you're aligned with current standards.

The combination of rising uninsured driver rates, affordable premiums, and substantial financial protection makes UM/UIM coverage one of the most important coverage types you can purchase. See our uninsured motorist coverage guide for additional strategies on choosing the right limits. When optimizing your overall policy, also explore cheap car insurance in 2026 for ways to maximize value across all your coverages.

Frequently Asked Questions

What happens if I'm hit by an uninsured driver without UM coverage?

Without uninsured motorist coverage, you have limited options when hit by an uninsured driver. You can attempt to sue the at-fault driver personally, but most uninsured drivers lack the assets to pay any resulting judgment. Your health insurance may cover medical expenses, but you'll still face deductibles and copays, and it won't cover lost wages, pain and suffering, or vehicle damage. If you carry collision coverage, it will pay for vehicle repairs minus your deductible—but recovering that deductible from an uninsured driver is unlikely.

Does UM coverage pay if I'm at fault in the accident?

No, uninsured and underinsured motorist coverage only pays when another driver is at fault. UM/UIM coverage is designed to step into the shoes of the at-fault driver's liability insurance. If you cause the accident, your collision coverage pays for your vehicle damage (minus your deductible), and your medical payments coverage or personal injury protection covers your injuries. Your UM/UIM coverage provides no benefit when you're responsible for the accident.

Can I use both UM coverage and my health insurance?

Yes, you can typically coordinate benefits between your UMBI coverage and your health insurance. However, your health insurer may seek subrogation—reimbursement from your UM settlement for medical expenses they paid. UM coverage provides advantages over relying solely on health insurance, including covering lost wages, pain and suffering, and costs health insurance won't touch like transportation to medical appointments. Consider UM coverage as complementary to your health insurance rather than a replacement.

How does UM coverage work with gap insurance?

Uninsured motorist property damage coverage and gap insurance explained cost and need serve different purposes but can work together effectively. UMPD pays for vehicle repairs or actual cash value if your car is totaled by an uninsured driver. Gap insurance covers the difference between your vehicle's actual cash value and your remaining loan balance. If an uninsured driver totals your financed vehicle, UMPD covers the actual cash value while gap insurance handles any remaining loan shortfall—making both valuable for drivers with financed vehicles.

Should I buy UM coverage if I have good health insurance?

Yes, you should still purchase UM coverage even with excellent health insurance. Health insurance doesn't cover all costs associated with an accident caused by an uninsured driver—it won't pay for lost wages, pain and suffering, reduced quality of life, or emotional distress, which are all benefits included in UMBI coverage. Health insurance also won't cover vehicle damage, while UMPD fills that gap. At just $3–6 monthly, UM/UIM coverage complements your health insurance by addressing critical financial exposures that your health plan simply doesn't cover.