What Is Uninsured Motorist Insurance Coverage?

Uninsured motorist coverage pays for your costs after a crash caused by a driver who has no insurance, too little insurance or whose insurer refuses to pay. Your own insurance company handles the claim, the same way you'd file any other claim.

There are two types. They are not always sold together, and not every state requires both:

1. Uninsured motorist bodily injury (UMBI): Pays your medical bills, lost wages and pain and suffering when an uninsured driver hurts you or your passengers.
2. Uninsured motorist property damage (UMPD): Pays to repair or replace your car when an uninsured driver damages it. Not available in every state.

What UM covers:

• Your medical bills and your passengers' medical bills
• Lost wages while you recover
• Pain and suffering
• Funeral expenses
• Car damage in states that offer UMPD

What UM does NOT cover:

• Items inside your car that get damaged, these are covered by your home or renters policy
• Legal fees from the accident
• Costs above your policy limits

How UM differs from similar coverages:

• Bodily injury liability pays for injuries you cause to others. UM pays for injuries others cause to you when they can't pay.
• Collision coverage pays for damage to your car after any crash regardless of fault. UMPD only pays when an uninsured driver damages your car. If you already carry collision coverage, you may not need UMPD since collision covers the same scenario.
• Personal injury protection pays your medical bills and lost wages after a crash no matter who caused it. UM only pays when another driver caused the crash and can't cover your costs. In no-fault states, PIP pays first and UM covers what's left.

After a crash, call your insurer right away. Most policies require you to report within 24 to 72 hours. Check your policy for the exact deadline. Missing it can give your insurer grounds to deny your claim.

You file through your own policy the same way you'd file any other claim. You do not have to chase the at-fault driver.

Here is a real example. A driver rear-ends you at a stoplight. You have $45,000 in medical bills. The other driver's insurance only covers $30,000. You file a UM claim with your own insurer for the remaining $15,000. Without UM coverage, you pay that $15,000 out of pocket. In our experience, underinsured driver claims like this are more common than pure uninsured claims. In 2023, one in six drivers nationally was underinsured, according to the Insurance Research Council. That's a bigger risk than most drivers realize.

The answer depends on where you live, what health insurance you have and how much savings you can fall back on.

Drivers with strong health insurance and solid savings have more options. Health insurance covers medical bills but not lost wages or pain and suffering. If you can absorb those gaps, UM is still worth considering but less urgent. Drivers without good health coverage or limited savings have almost no good option without UM. An uninsured driver who totals your car and injures you leaves you with bills health insurance won't cover, car repair costs you'll pay out of pocket and income you can't replace.

One thing worth noting on car damage: if you already carry collision coverage, it pays for your car repairs regardless of whether the other driver is insured. In that case you may not need UMPD. If you only have liability coverage, UMPD is the only way to protect your car when an uninsured driver hits it.

Where you live changes how much UM coverage matters. The tables below show the 10 highest and 10 lowest states, according to the Insurance Information Institute using Insurance Research Council's most recent data.

Mississippi's rate of 28.2% is nearly five times Maine's rate of 5.7%. Several states near the top, including Missouri and Washington D.C., require auto insurance but still have some of the highest uninsured rates in the country. Having a law and enforcing it are two different things. For drivers in the top 10 states, UM coverage is recommended to avoid damage from an uninsured driver.

In our analysis, UM coverage averages $9 per month to add to a policy. 

What moves the price:

• Your state. Drivers in Mississippi, New Mexico and Florida pay more because the risk of UM is higher.
• Your limits. Matching your UM limits to your liability limits costs more than carrying minimum UM limits but gives you equal protection on both sides of an accident.
• UMBI vs. UMPD. Adding property damage coverage on top of bodily injury coverage raises the cost but protects your car when an uninsured driver hits it.

Because UM is priced as an add-on, ask for quotes with and without it and compare the difference directly. For most drivers, that difference is small.

One in three drivers is either uninsured or underinsured. If one of them causes a serious crash and can't pay your bills, UM coverage is the only thing standing between you and those costs. For most drivers it costs less than $100 per year.

If you live in Mississippi, New Mexico, Florida or any other high-uninsured state, carrying UM is close to a given. If you live in Maine, Utah or Idaho, the math is closer but the cost is low enough that skipping it is hard to justify.

Next Steps

1. Check whether your state requires UM coverage using our state minimum car insurance requirements guide.
2. Get quotes with and without UM included and compare the cost difference directly.
3. Set your UM limits to match your liability limits. If you have 100/300 bodily injury, carry 100/300 UM so you have equal protection on both sides of an accident.
4. If you already carry collision coverage, you may not need UMPD. Collision covers your car after any crash regardless of whether the other driver is insured.