What is Uninsured Motorist Coverage?

Uninsured motorist coverage is an optional insurance add-on that protects you financially when you're involved in an accident with a driver who has no insurance. This coverage essentially steps into the shoes of the at-fault driver's insurance company, paying for your damages when they have no policy to cover you. With approximately 15.4% of U.S. drivers operating without insurance in 2023—and some states seeing rates as high as 28%—this protection has become increasingly important for American drivers.

When you purchase uninsured motorist coverage, you're adding a safety net to your auto insurance 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 that 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.

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, especially when comparing auto insurance options.

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 that differ from UMBI coverage—most notably, it typically doesn't cover hit-and-run accidents where the driver cannot be identified.

If you already carry collision coverage on your policy, 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, whereas collision claims might increase your premiums. 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. With many states requiring only minimum liability limits of $25,000 per person, serious accidents can easily exceed these amounts, leaving you with uncovered expenses.

Understanding the differences in coverage limits helps you determine the right protection level for your situation.

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

Currently, 21 states plus Washington D.C. require drivers to carry uninsured motorist coverage. These mandatory states include Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New York, North Carolina, North Dakota, Oregon, South Carolina, Vermont, Virginia, 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.

Even in states where it's optional, insurance companies are typically required to offer uninsured motorist coverage to all policyholders. Some states mandate that UMBI limits must match your bodily injury liability limits unless you request lower coverage in writing. This ensures that drivers are at least aware of the protection available to them before declining it.

Uninsured Driver Statistics

The statistics paint a concerning picture of the risk uninsured drivers pose. According to the Insurance Research Council, 15.4% of U.S. drivers were uninsured in 2023, up from 14% in 2022. This means roughly one in seven drivers on American roads has no insurance to cover damages they cause.

The risk varies dramatically by location. Mississippi leads the nation with 28.2% of drivers uninsured, followed by New Mexico at 24.1% and Washington D.C. at 23.1%. Other high-risk states include Tennessee and Michigan. On the opposite end, Wyoming maintains the lowest uninsured driver rate at just 5.9%. These statistics should heavily influence your decision—if you live in a state with high rates of uninsured drivers, the protection becomes even more valuable.

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.

The coverage is remarkably affordable compared to the protection it provides. The median annual cost for UMBI coverage is approximately $50, while UMPD adds about $38, totaling around $90 per year. That's less than $8 per month for substantial financial protection. When shopping for cheap car insurance, declining uninsured motorist coverage to save this modest amount creates significant financial risk.

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 matches the amount you'd have if the other driver carried insurance. Common coverage levels include 25/50, 50/100, 100/300, or even higher limits for those with significant assets to protect. Higher limits cost more, but the incremental increase is often modest compared to the additional protection.

Stacked vs. Non-Stacked Coverage

Some states offer the option of "stacked" uninsured motorist coverage, allowing you to combine coverage limits across multiple vehicles on your policy. For example, if you have two vehicles each with 50/100 UMBI limits and choose stacked coverage, you effectively have 100/200 in total protection. This provides greater coverage in serious accidents but increases your premium.

Non-stacked coverage limits protection to the limits on the specific vehicle involved in the accident. While less expensive, it provides lower total coverage. Whether stacking is available and worthwhile depends on your state laws, the number of vehicles you insure, and your budget. Understanding how different coverage options affect costs can help you make this decision.

Integration with Other Coverage Types

Understanding how uninsured motorist coverage interacts with your other insurance prevents both gaps and unnecessary duplication. If you carry collision coverage, you may wonder if UMPD is redundant. While both cover vehicle damage, collision coverage is broader—it covers damage regardless of fault and includes hit-and-runs. However, collision claims require paying your deductible and might affect your rates.

Medical payments coverage and personal injury protection overlap with UMBI but typically offer lower limits. UMBI generally provides higher maximum payouts and covers pain and suffering damages that medical payments don't include. For most drivers, having both coverages makes sense—medical payments can cover small immediate expenses while UMBI handles serious injuries.

Choosing the Right Insurance Company

Not all insurance companies handle uninsured motorist claims equally. When selecting your insurer, research their reputation for claims handling and customer service. Some companies process uninsured motorist claims smoothly, while others fight to minimize payouts. Reading reviews and checking complaint ratios with your state insurance department provides insight into which companies treat customers fairly.

Consider whether your insurer offers additional benefits with uninsured motorist coverage, such as rideshare coverage if you drive for Uber or Lyft, or special programs for veterans. Some companies also offer GAP insurance that coordinates with uninsured motorist coverage for financed vehicles.

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
• Deductibles: Some UMPD policies have deductibles while others don't—understand what you'll pay out-of-pocket
• Claims process: Ask about the timeline and documentation needed to file uninsured motorist claims
• Conversion provisions: Some policies allow you to convert 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 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 your case. You'd be forced to rely on your health insurance for medical bills (subject to deductibles and copays), use your 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, especially for serious injuries requiring extensive medical treatment.

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

Uninsured motorist bodily injury coverage typically covers hit-and-run accidents where the driver cannot be identified, treating the unknown driver as uninsured. However, uninsured motorist property damage coverage often does not cover hit-and-runs in many states, requiring collision coverage instead for vehicle repairs. The specific rules vary by state, so check your policy language carefully. Some states require you to report the hit-and-run to police within a certain timeframe to maintain coverage eligibility.

How is underinsured motorist coverage different from uninsured motorist coverage?

Underinsured motorist coverage applies when the at-fault driver has insurance but their liability limits are insufficient to cover your total damages, while uninsured motorist coverage applies when the driver has no insurance whatsoever. For example, if you have $100,000 in medical bills but the at-fault driver only carries $25,000 in liability coverage, underinsured motorist coverage would pay the $75,000 difference (up to your policy limits). Many insurance policies bundle both coverages together, providing comprehensive protection against inadequately insured drivers.

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 claims similarly to comprehensive claims—as not-at-fault situations that don't reflect your driving risk. However, specific practices vary by insurance company and state regulations. Some insurers might still raise rates after multiple claims regardless of fault, so it's worth reviewing your policy terms or asking your agent about their claims policy before purchasing 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 and substantial protection. The modest savings of roughly $90 annually creates significant financial risk if you're hit by an uninsured driver. If you do decline coverage, you'll usually need to sign a rejection form acknowledging that you understand the risks. Some insurers allow you to add the coverage later, but it's simpler to maintain continuous protection from the start.