What Is Uninsured Motorist Insurance Coverage?

Uninsured motorist insurance coverage (UM) protects you if you are ever in an accident caused by an uninsured driver, a driver whose coverage cannot cover your costs or a driver whose insurance company denies their claim. Ultimately, the purpose of UM is to pay for various fees, including medical bills, lost wages and car damage if the accident is not your fault.

There are two types of uninsured motorist insurance coverage. It’s important to know the difference, as they are not always bundled together (although they are in some states, so check with your insurance provider).

UM covers standard expenses as a result of an accident. UM typically covers costs for you and your passengers. These costs can include:

• Medical bills
• Lost wages if you cannot work while recovering from the accident
• Pain and suffering compensation
• Funeral expenses
• Car damage in some states

Remember, every UM package is different. The best way to find out what your insurance provider’s uninsured motorist insurance covers is to ask. You should also research a few different providers to understand what other insurance providers cover under their uninsured motorist policies and how this compared to your current insurance companies.

UM will not cover every expense caused by an accident, even if you are not at fault, so it's crucial to discuss full coverage car insurance details with your provider to understand what your coverage protects. It's a smart idea that you understand your coverage fully before having to file a claim. UM typically does not cover:

• Damages to items inside your car
• Legal fees related to the accident
• Expenses over your policy amount

In the event of an accident, it's essential to contact your insurance provider right away to let them know you will be filing a claim. Some providers have deadlines for how long you can delay filing a claim, so don't wait. Once you have notified your insurance company, you will file a claim as you would a regular car insurance claim, except that the claim is essentially against your own insurance company.

Uninsured Motorist Coverage Example

Kevin rear-ends Jeff at a stoplight. Jeff sustains injuries and goes to the hospital, where he receives treatment for a few broken bones. Jeff’s medical bills amount to $45,000 for the treatment he received from the accident. Kevin’s insurance company offers to pay his total policy amount insured: $30,000, which falls short of total expenses accrued. In this example, Jeff still needs $15,000 to cover his bills. Jeff files an uninsured motorist coverage claim to cover the rest of his medical expenses. Without uninsured motorist insurance, Jeff would have to pay that $15,000 out of pocket.

Most auto insurance companies offer UM insurance, but you might have to compare quotes from a few different providers before selecting the right plan.

Unless you live in a state where it is required to have UM, you do not need to pay for uninsured motorist insurance. However, that doesn’t mean that you shouldn’t consider this extra coverage. When asking yourself, “Do I need uninsured motorist coverage
?” consider your personal circumstances. Are you able to cover unexpected medical bills, can you pay for car repairs out-of-pocket and will you be able to work if injured? When confronted with these questions, most drivers would answer “no.” Speak to your insurance provider to discuss your options.

Not all states require UM insurance, but it could already be included in your auto insurance coverage, so check with your provider. The following states require UM insurance:

• Connecticut
• District of Columbia
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• Virginia
• West Virginia
• Wisconsin

Remember that minimum liability limits vary by state, so be sure to discuss your required limits with each insurance provider when shopping for auto insurance quotes.

The amount of uninsured motorists varies by state. Still, if you live in an area with a high percentage of uninsured drivers, it is probably a good idea to get UM coverage to protect yourself in the event of an accident. The table below ranks each state by percentage of uninsured drivers.

Source: Insurance Research Council.

Consider the cost of uninsured motorist coverage when weighing your options. If the minimum liability coverage is low in your state, it might ultimately benefit you to consider uninsured motorist coverage.

Uninsured motorist coverage is additional auto insurance coverage that protects you if you’re ever in a car accident caused by an uninsured driver.

Some states require all drivers to have uninsured motorist coverage, so you might not have a choice. However, it’s essential to understand the different coverage types and how they can protect you and your family.

Uninsured motorist (UM) coverage protects you financially if you’re hit by a driver with no insurance, too little insurance or in a hit-and-run. It can cover medical bills, lost wages and property damage, giving you an added layer of security on the road.

Our uninsured motorist coverage analysis draws from comprehensive nationwide data to help you understand this important protection and find the right coverage for your needs.

Data Sources

Quadrant Information Services: Provides rate data for uninsured motorist coverage across all 50 states and different driver profiles.

State Insurance Departments: Official requirements and regulations for uninsured motorist coverage by state.

Industry Sources:

• AM Best: Insurance company financial stability ratings
• J.D. Power: Customer satisfaction data for claims handling
• NAIC: Customer complaint data, particularly for uninsured motorist claims processing

Our Analysis Process

We evaluate uninsured motorist coverage based on:

• State requirements: Which states mandate UM coverage and minimum limits
• Coverage costs: How much UM coverage adds to your premium across different insurers
• Claims experience: How insurers handle UM claims based on customer feedback and industry data
• Coverage variations: Differences in UM coverage options between insurers

Sample Driver Profile

Our rate comparisons use this baseline profile to ensure consistency:

• Single 40-year-old driver
• 2012 Toyota Camry LE
• Clean driving record
• Good credit score
• State minimum liability requirements

Note: Not all states require uninsured motorist coverage. However, purchasing this coverage can protect you from paying significant costs if you're involved in an accident with an uninsured or underinsured driver.

Expert Review

Licensed insurance professionals review all coverage explanations and state requirement information to ensure accuracy. Our research team contacts insurance companies directly when clarification is needed on UM coverage specifics.

Disclaimer: Insurance regulations vary by state. Always verify uninsured motorist coverage requirements and options with your state's insurance department and insurance providers.