Do You Need Uninsured Motorist Coverage?

Uninsured motorist (UM) coverage pays your medical bills, lost wages and vehicle repair costs when an at-fault driver has no insurance. As of the most recent data in 2023, 15.4% of U.S. drivers currently carry none, according to the Insurance Research Council. Without UM coverage, you'd pay those costs out of pocket or through your own health insurance, often with no way to recover them from the at-fault driver. MoneyGeek's analysis finds that for most drivers, the financial risk of going without uninsured motorist coverage far outweighs the modest annual cost of adding it.

Uninsured motorist coverage is a car insurance add-on that pays your costs when an at-fault driver has no liability insurance. It steps in where the other driver’s policy should have, covering medical bills, lost income, rehabilitation and, in some states, vehicle damage. To understand how it compares to other policy types, see our guide on uninsured motorist coverage. UM coverage protects you, your passengers and, in most states, household family members injured in the same accident.

Underinsured motorist (UIM) coverage is a related but distinct protection. It applies when an at-fault driver has insurance but not enough to cover the full cost of your injuries or vehicle damage. After the other driver's policy pays out, UIM coverage bridges the gap. Most insurers sell UM and UIM together, and many states require both.

The four main UM and UIM coverage types are:

Twenty states and Washington, D.C., require uninsured motorist coverage by law. In optional states, insurers must still offer it at purchase. The state table below shows current requirements and minimum liability limits. State requirements for uninsured and underinsured motorist coverage vary widely:

Even in states where UM coverage is optional, experts recommend adding it to your policy. California and Texas have no UM requirement, yet more than 15% of drivers in each state carry no insurance, according to Insurance Research Council data. Optional doesn't mean unnecessary.

Uninsured motorist coverage matters most when you're involved in an accident where the at-fault driver has no insurance, has fled the scene or carries liability limits too low to cover your injuries. Those situations represent millions of accidents annually, and without UM coverage you'd have no direct way to recover costs from the other driver. UM coverage gives you a direct claim with your own insurer instead.

Uninsured motorist coverage costs $50 to $150 per year for most drivers, based on MoneyGeek's analysis of national rate data. The exact cost depends on your state, coverage limits and insurer. Adding UM/UIM to a standard liability policy typically increases your total premium by 5% to 10%.

Coverage limits follow the same structure as bodily injury liability, typically expressed as a per-person and per-accident maximum. A 100/300 UM policy pays up to $100,000 per injured person and $300,000 total per accident. For a full breakdown of how limits work across policy types, review our car insurance coverage guide. Selecting limits that match your liability coverage gives you consistent financial protection across all loss scenarios.

Most drivers need uninsured motorist coverage. It's legally required in 20 states and Washington, D.C. For $50 to $150 per year, UM/UIM coverage gives you a direct route to compensation for medical bills, lost wages and vehicle damage when an at-fault driver can't pay. Match your UM limits to your liability limits, add UMPD if your vehicle has significant value and notify your insurer immediately after any accident with an uninsured driver.