Do You Need Uninsured Motorist Coverage?

Uninsured motorist (UM) coverage 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. 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 Insurance Research Council found that 15.4% of U.S. drivers were uninsured as of the most recent 2023 data. In certain states like Mississippi and Michigan, that figure is closer to one in four. Beyond medical bills and lost wages, UM/UIM can cover pain and suffering damages that health insurance won't pay. Without it, those costs come out of pocket with little recourse against a driver who can't pay. Most drivers can add full UM/UIM protection for $50 to $150 per year.

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 applies in these situations:

Uninsured motorist coverage costs $50 to $150 per year for most drivers, based on our analysis of national rate data. Cost varies by state, coverage limits and insurer. Adding UM/UIM to a standard liability policy increases your total premium by 5% to 10%.

UM/UIM limits follow the same per-person and per-accident structure as bodily injury liability. A 100/300 UM policy pays up to $100,000 per injured person and $300,000 per accident. Our car insurance coverage guide breaks down how limits work across all policy types. Setting your UM/UIM limits to match your liability limits gives you consistent protection on both sides of a collision.

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.