What is Uninsured Motorist Coverage?

Uninsured motorist coverage is an insurance add-on that protects you financially when you're involved in an accident with a driver who has no insurance. This coverage steps into the shoes of the at-fault driver's insurance company, paying for your damages when they have no policy to cover you. According to the Insurance Research Council's most recent report, 15.4% of U.S. drivers were uninsured in 2023—meaning roughly one in seven drivers on American roads carries no insurance at all. That figure has risen from 12.4% in 2017, making this protection more important than ever.

When you purchase uninsured motorist coverage, you're adding a safety net to your auto policy. Instead of being left with mounting bills and no recourse after an accident caused by an uninsured driver, your own insurance company handles your claim. The coverage works similarly to the liability insurance the at-fault driver should have carried, protecting you from being a financial victim twice—once from the accident itself and again from the lack of compensation. See our guide on recommended coverage levels to build a policy that truly protects you.

Types of Uninsured Motorist Coverage

Understanding the different types of uninsured motorist coverage helps you make informed decisions about your policy. There are two primary categories, each serving distinct purposes in protecting you after an accident.

Uninsured Motorist Bodily Injury (UMBI)

Uninsured Motorist Bodily Injury coverage pays for injuries sustained by you and your passengers when hit by an uninsured driver. This coverage extends beyond just medical bills—it compensates for lost wages if you can't work, pain and suffering damages, and even funeral expenses in tragic circumstances. UMBI typically offers higher limits than medical payments coverage or personal injury protection, providing more comprehensive financial protection.

The coverage applies whether you're driving your vehicle, riding as a passenger, or even walking as a pedestrian struck by an uninsured motorist. Most policies also cover hit-and-run accidents where the at-fault driver flees the scene and cannot be identified. This broad protection makes UMBI one of the most valuable coverage types you can add to your policy. Learn more about hit-and-run insurance claims to understand exactly what applies if a driver flees.

Uninsured Motorist Property Damage (UMPD)

Uninsured Motorist Property Damage coverage handles repairs to your vehicle when damaged by an uninsured driver. The coverage pays up to the actual cash value of your vehicle, subject to your policy limits. However, UMPD has important limitations—most notably, it typically does not cover hit-and-run accidents where the driver cannot be identified.

If you already carry collision coverage, UMPD may seem redundant. However, there's a key advantage: filing a claim under UMPD usually won't affect your rates since you weren't at fault. Additionally, in some states, UMPD claims don't require you to pay a deductible, making it more affordable than using your collision coverage.

Underinsured Motorist Coverage

While not technically "uninsured" motorist coverage, underinsured motorist (UIM) coverage deserves mention as it's often bundled together. UIM protection kicks in when the at-fault driver has insurance, but their liability limits are too low to cover your total damages. Settlements for serious injuries can easily reach $100,000 or more—a figure that far surpasses the minimum liability limits many states require. Understanding bodily injury liability coverage helps you see why low state minimums can leave you dangerously exposed.

Do You Need Uninsured Motorist Coverage?

The decision to purchase uninsured motorist coverage depends on several factors including your state's requirements, local statistics, your financial situation, and your existing coverage. While not universally mandatory, the protection it provides makes it a worthwhile consideration for most drivers.

State Requirements and Regulations

As of 2026, approximately 19 states plus Washington D.C. require drivers to carry uninsured or underinsured motorist coverage. These include Connecticut, Illinois, Kentucky, Maine, Maryland, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Vermont, West Virginia, and Wisconsin. If you live in one of these states, your insurance company must offer this coverage, and in most cases, you must accept it or formally reject it in writing. Check your state's minimum car insurance requirements to confirm exactly what's mandated where you live.

Several significant regulatory changes have recently taken effect that affect UM/UIM coverage:

• North Carolina (July 1, 2025): UIM is now mandatory and must match the new minimum liability limits of 50/100/50. The law eliminates the previous offset rule — meaning UIM pays on top of the at-fault driver's liability coverage rather than being reduced by it — and a "stack-and-compare" rule now allows victims to access combined UIM limits across applicable policies.
• New Jersey (January 1, 2026): UM/UIM minimums increased to $35,000 per person and $70,000 per accident, matching the raised bodily injury liability limits. Existing policies update automatically at renewal.
• California (January 1, 2025): Minimum liability rose to 30/60/15 for the first time since 1967; UM/UIM coverage must match those limits if purchased (optional but strongly recommended). Limits are set to increase again to 50/100/25 in 2035.
• Utah (January 1, 2025): Minimum liability increased to 30/65/25; UM/UIM must match if purchased.
• Virginia (January 1, 2025): Minimum liability rose to 50/100/25; UM/UIM is a minimum requirement and must match if purchased.
• Massachusetts (July 1, 2025): Minimum compulsory auto insurance limits were raised, increasing the importance of matching UM/UIM coverage.

Even in states where UM coverage is optional, insurance companies are typically required to offer it to all policyholders. Declining it usually requires a signed rejection form acknowledging the associated risks.

Uninsured Driver Statistics

The numbers tell a concerning story. According to the Insurance Research Council, 15.4% of U.S. drivers were uninsured in 2023—up from 12.4% in 2017. Even more striking: combined uninsured and underinsured drivers reached 33.4% in 2023, a 10 percentage-point rise since 2017. Underinsured rates alone grew from about 11% in 2017 to 18% in 2023, with some states seeing even higher concentrations of risk.

The risk varies dramatically by location. Here's a snapshot of the most and least risky states based on the IRC's most recent data:

Uninsured and underinsured drivers combined cost insured motorists billions of dollars annually. A key contributing factor is affordability: a growing share of drivers report that car insurance has become unaffordable, which helps explain why uninsured rates remain persistently elevated. Understanding whether state minimum car insurance is enough puts these statistics in sharp financial context.

Financial Protection Considerations

Consider your financial ability to absorb costs if hit by an uninsured driver. Medical bills from serious accidents can easily reach six figures, and lost wages during recovery can devastate your finances. Without uninsured motorist coverage, your only recourse is suing the at-fault driver personally—but most uninsured drivers lack the financial resources to pay a judgment, even if you win in court. The average uninsured motorist injury claim is nearly $30,000, and serious incidents can climb far higher.

The coverage is remarkably affordable given the protection it provides. UMBI coverage costs approximately $70 per year on average (roughly 3–5% of your total insurance bill), while UMPD generally runs in the range of $22 to $78 per year depending on your location, vehicle, and policy structure. That makes the full UM package available for well under $100–$150 annually for many drivers—one of the most cost-effective additions to any auto policy, especially when one in seven drivers you share the road with carries no insurance at all.

What to Look for When Choosing Coverage

Selecting the right uninsured motorist coverage involves understanding coverage limits, policy features, and how the protection integrates with your other insurance. Making informed choices ensures you have adequate protection without paying for unnecessary coverage.

Coverage Limits and Policy Structure

Your uninsured motorist coverage limits determine the maximum amount your insurance company will pay for a single accident. These limits are expressed in split formats like 25/50/25 or 100/300/100, where the first number represents the per-person bodily injury limit (in thousands), the second is the per-accident bodily injury limit, and the third (if applicable) is the property damage limit.

Insurance experts recommend matching your UMBI limits to your bodily injury liability limits. This creates symmetry in your policy—the amount you're protected for mirrors the amount you'd receive if the other driver carried insurance. Common coverage levels include 25/50, 50/100, 100/300, or higher for those with significant assets. Higher limits cost more, but the incremental increase is often modest compared to the additional protection they provide. Learn how to evaluate whether you're underinsured to set the right limits for your situation.

Stacked vs. Non-Stacked Coverage

Some states allow "stacked" uninsured motorist coverage, which lets you combine coverage limits across multiple vehicles on your policy. For example, with two vehicles each carrying $50,000 in UM coverage, stacked coverage gives you up to $100,000 in total protection, while non-stacked limits you to $50,000 from the single vehicle involved in the accident. Availability varies by state, and rules differ between intra-policy stacking (combining limits within your own policy across vehicles) and inter-policy stacking (combining limits across separate household policies).

Non-stacked coverage is less expensive and may be sufficient for single-car households or lower-risk drivers. Stacked coverage typically costs 15–30% more in premium but can pay out significantly more for multi-vehicle households in serious accidents. North Carolina's July 2025 reforms introduced a "stack-and-compare" rule, making stacking an important consideration for NC drivers. For a detailed breakdown of how these options compare, see our guides on stacked vs. unstacked insurance and car insurance coverage stacking.

Integration with Other Coverage Types

Understanding how uninsured motorist coverage interacts with your other insurance prevents both gaps and unnecessary duplication. UMBI is broader in scope than health insurance alone—while health insurance covers medical bills (subject to deductibles and copays), UMBI can also reimburse lost income, emotional pain and suffering, and anticipated future medical expenses that health insurance typically won't touch. Experts generally recommend using UM coverage first after an accident with an uninsured driver for a more comprehensive financial recovery.

Medical payments coverage and personal injury protection (PIP) overlap with UMBI but typically offer lower limits. UMBI generally provides higher maximum payouts and covers pain and suffering that medical payments don't include. For most drivers, having both coverages makes sense—medical payments handle smaller immediate expenses while UMBI addresses serious injuries. Review our UM/UIM coverage guide for a complete side-by-side breakdown of all coverage types.

Policy Features to Consider

Look beyond just the coverage limits to examine policy features that affect your protection:

• Hit-and-run coverage: Confirm whether UMBI covers hit-and-runs in your state and what documentation requirements exist (a police report is typically required)
• Deductibles: UMPD policies typically carry deductibles ranging from $100 to $1,000—understand what you'll pay out-of-pocket
• Claims process: Ask about the timeline and documentation needed to file uninsured motorist claims
• No-surcharge protection: Some states, including South Carolina, prohibit insurers from raising your rates after a UM/UIM claim where you weren't at fault
• Conversion provisions: Some policies allow you to add rejected coverage later without evidence of insurability
• Rental car protection: Determine if your uninsured motorist coverage extends to rental vehicles

Frequently Asked Questions About Uninsured Motorist Coverage

What happens if I'm hit by an uninsured driver and I don't have uninsured motorist coverage?

Without uninsured motorist coverage, you would need to pursue the at-fault driver personally through a lawsuit to recover your damages. However, most uninsured drivers lack the financial resources to pay settlements or judgments, leaving you unable to collect even if you win. You'd be forced to rely on your health insurance for medical bills (subject to deductibles and copays), use collision coverage for vehicle repairs if you have it, and absorb lost wages and pain and suffering with no compensation. This situation can be financially devastating, particularly since serious injury claims can easily climb well into six-figure territory.

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

Uninsured motorist bodily injury (UMBI) coverage typically covers hit-and-run accidents where the driver cannot be identified, treating the unknown driver as uninsured. However, uninsured motorist property damage (UMPD) coverage often does not cover hit-and-runs in many states—you'd typically need collision coverage for vehicle repairs in that scenario. The specific rules vary by state and insurer, and most require you to file a police report within a specific timeframe to maintain eligibility. See our hit-and-run insurance guide for a complete breakdown by coverage type.

How is underinsured motorist coverage different from uninsured motorist coverage?

Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance but their liability limits are insufficient to cover your total damages, while uninsured motorist (UM) coverage applies when the driver has no insurance whatsoever. For example, if you have $80,000 in medical bills but the at-fault driver only carries $25,000 in liability coverage, UIM coverage would pay the $55,000 difference up to your policy limits. Many insurance policies bundle both coverages together, and experts recommend matching both limits to your own bodily injury liability limits for balanced protection. Learn more about underinsured motorist coverage and why state minimums often aren't enough.

Will making an uninsured motorist claim raise my insurance rates?

Generally, filing an uninsured motorist claim should not increase your insurance rates because you were not at fault for the accident. Most insurance companies treat these as not-at-fault situations that don't reflect your driving risk—similar to how comprehensive claims are typically handled. Some states have laws explicitly prohibiting insurers from surcharging not-at-fault UM/UIM claimants, such as South Carolina. However, specific practices vary by company and state regulations, so it's worth reviewing your policy terms or asking your agent before you need to use the coverage.

Can I reject uninsured motorist coverage to save money?

In states where uninsured motorist coverage is optional, you can typically decline it to reduce your premium. However, most insurance experts strongly advise against rejecting this coverage given its low cost—UMBI averages approximately $70/year—relative to the substantial protection it provides. The modest savings create significant financial risk if you're ever hit by one of the roughly one-in-seven drivers who carry no insurance. If you're unsure what's right for your situation, reviewing your full policy structure alongside our guide on how much car insurance you need can help you make a confident, informed decision.