What is uninsured motorist coverage?

Uninsured motorist (UM) coverage is part of a car insurance policy. If you’re in an accident caused by a driver with no insurance, your UM will help pay for your medical and car repair bills. Depending on your state, UM may also pay if a driver responsible for an accident flees the scene.

UM is required by law in 19 states (including the District of Columbia), according to the Insurance Information Institute. Many other states require insurance companies to offer coverage when you buy a policy. Still others require you to sign a form rejecting UM if you don’t want it on your policy.

How does uninsured motorist coverage work?

Say you’re involved in an accident caused by another driver. Typically, that driver will have liability insurance. This means that their insurance company will cover the cost of your medical bills, car repair, and other related expenses.

What If the other driver doesn't have insurance? Yes, liability coverage is mandatory in nearly every state. But according to a 2021 study by the Insurance Research Council, 12.6 percent of drivers — one out of eight on the road — aren’t insured.

That’s where your UM coverage will step in. With UM, your own insurance company will help pay for those costs.

UM usually applies in multiple situations:

• An accident in which an uninsured vehicle strikes your parked or moving car.
• An accident in which an uninsured vehicle strikes your property (for example, a mailbox or fence).
• An accident in which an uninsured vehicle strikes you as a pedestrian or cyclist.

It may also apply if you're the victim of a hit-and-run. This is when the driver responsible for an accident leaves the scene before you can get their information and contact law enforcement. A hit-and-run can involve two or more vehicles, a vehicle and your property (for example, a driver crashes into your fence and then drives away), or a vehicle and a pedestrian or cyclist.

What does uninsured motorist insurance cover?

Depending on your state and the makeup of your coverage, your UM will help pay for things such as:

• Medical bills, including physical therapy to recover from injuries.
• Lost wages related to the accident.
• Pain and suffering.
• Funeral expenses.
• Car repair bills.

Again, this all varies by state and insurance company. Check your policy contract or contact your insurer to understand just what’s covered by your policy.

Types of uninsured motorist coverage

UM is actually two types of coverage: Uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD).

With UMBI, your insurance company will help pay for medical bills, lost wages, and pain and suffering for you and your passengers.

With UMPD, your insurance company will help pay for repairs to and/or replacement of your property. This might include your car and its contents or stationary property such as a mailbox or fence.

Uninsured motorist coverage limits

UM coverage has limits. A limit is the maximum amount of money the insurance company will pay for a claim. Any expenses beyond the limit will come out of your own pocket (though your health insurance may kick in to help you pay any medical bills).

You’ll choose your coverage limits when you buy a policy. Choosing higher limits means you have more coverage, but you’ll also pay more in premiums.

UM limits may be expressed as three numbers separated by slashes. For example, 100/300/25. This means:

• $100,000 UMBI limit per person. The insurance company will pay no more than $100,000 to any individual in an accident.
• $300,000 UMBI limit per accident. The insurance company will pay no more than $300,000 combined to everyone in an accident.
• $25,000 UMPD limit per accident. The insurance company will pay no more than $25,000 towards repairing or replacing your car or other property in an accident.

UMPD may also include a deductible. A deductible represents your share of the costs — it’s money you agree to pay toward the repair/replacement. You choose your deductible amount when you add the coverage to your policy. Choosing a lower deductible means you pay a lower share if you have a claim, but it will cost you more in premium.

What are stacked UM limits?

In some states, insurance companies can offer a feature called "stacked" limits. Stacking effectively multiplies your limits to increase the level of your coverage.

If you choose to stack, the insurance company will multiply your UM limits by the number of vehicles on your policy. For example, say you have UM on a policy with three cars. Your uninsured motorist bodily injury limits are 100/300. If you file a UM claim, your uninsured motorist coverage limits will be stacked to 300/900.

If it's available, you can choose stacked limits when you buy your policy. And as with most coverage boosts, choosing to stack means you’ll pay more in premiums.

How much uninsured motorist coverage do I need?

If your state requires UM (see chart at the end of this article), you’ll need to add it to your policy with at least state minimum limits. Minimum limits are usually set at your policy’s liability limits. So if your liability limits are 100/300/100, for example, you’ll need to have UM limits of 100/300/100 as well.

If UM is not required by your state, having UM with limits that match those of your liability coverage may still be a good idea. This is especially so in states with a high percentage of uninsured drivers. An insurance agent can advise you on your needs and options.

What’s the difference between uninsured motorist coverage and underinsured motorist coverage?

In addition to UM coverage, you may have the option or requirement to add underinsured motorist (UIM) coverage to your car insurance policy.

UIM works similarly to UM. It comes into play when the other driver has liability insurance, but their limits are too low to cover your medical costs fully.

For example, imagine you’re in an accident caused by another driver, and their bodily injury liability limits are only $10,000 per person. Your medical bills run to $25,000. (When you consider the high cost of emergency room care, overnight hospital admittance, and physical therapy, $25,000 or more in bills is certainly a possibility.) This leaves you with a $15,000 shortfall from the liability claim settlement. Your UIM would help cover that amount.

As with your UM coverage, your UIM coverage may have a limit — the maximum amount your insurance company will pay. And as these coverages have a similar purpose, they’re often bundled together by insurers.

UIM is currently required by law in 13 states.

What’s the difference between collision coverage and uninsured motorist coverage?

Collision is an optional coverage that you can add to a car insurance policy. In some cases, it may work as an alternative to UMPD.

With collision coverage as part of your policy, your insurance company will pay to repair or replace (if necessary) your car when it’s in an accident, no matter who’s at fault. If you’re in an accident caused by an uninsured driver, your collision coverage will help pay to repair or replace your vehicle. Note that collision coverage has a deductible.

Remember that collision coverage won’t pay your medical bills or other expenses related to your personal recovery.

State laws for uninsured and underinsured motorist coverage

The Insurance Information Institute updated its state-by-state UM and UIM requirements breakdown in January 2022. It’s as follows:

How to get uninsured motorist coverage

Major car insurance companies, including State Farm, Geico, and USAA, offer UM coverage. You can contact those insurers directly or through one of their agents to get the coverage added to your policy.

If your state requires UM coverage, your insurance company should offer it. If, for some reason, it doesn’t, contact an insurance agent as soon as possible to find a company that does.

The AP Buyline roundup: Protect yourself from the uninsured

It shouldn't be this way, but many drivers hit the road without insurance — even though minimum levels of liability coverage are required in nearly every state. Your policy's UM coverage helps protect you from the financial implications of being involved in an accident with one of these drivers.

Frequently asked questions (FAQs)

Do I need uninsured motorist coverage if I have full coverage?

If you have full coverage, you may not need UM. Collision coverage, for instance, will pay for damage to your vehicle caused by an uninsured driver. Personal injury protection, medical payments coverage, and health insurance can help you pay your medical bills.

An insurance agent can help you understand your coverage needs and options.

Should I get uninsured motorist coverage?

You need UM if your state's laws require it. In that case, you need UM as part of your car insurance policy to drive legally. Contact your insurance company or agent to have it added.

You don't need UM if it's optional in your state. However, you'll assume greater financial risk when behind the wheel.