Car insurance is legally required in nearly every state in the US. But what happens when that requirement isn’t enforced? According to recent data from the Insurance Information Institute, this question is becoming increasingly relevant, as uninsured motorist rates have reached 14% nationwide.
Unfortunately, getting into an accident with a driver who doesn’t have liability insurance could mean that you’re left to foot the bill. That’s where uninsured and underinsured motorist (UM/UIM) coverage comes in to protect you.
Note: These tips should not be considered official insurance guidance. Please consult an insurance professional or broker when making decisions regarding insurance.
What Is Uninsured Motorist (UM) Coverage?
Uninsured Motorist (UM) coverage steps in to pay for your expenses when you’re hit by a driver who has no liability insurance at all. It also typically applies to hit-and-run accidents where the at-fault driver can’t be identified.
UM coverage usually comes in two parts:
- Uninsured Motorist Bodily Injury (UMBI): This helps pay for your medical bills, lost wages from being unable to work, and even pain and suffering for you and your passengers.
- Uninsured Motorist Property Damage (UMPD): This helps pay to repair or replace your car if it’s damaged by an uninsured driver. In some states, this coverage may not be available, as collision coverage would handle the repairs instead.
When you may need uninsured motorist coverage:
- Hit-and-Run on the Highway: You’re driving on the highway, and another car swerves into your lane, side-swiping your vehicle and causing significant damage. The other driver doesn’t stop, and you can’t identify their license plate. Your UM property damage and bodily injury coverage would help cover your vehicle repairs and medical expenses.
- Accident with an Uninsured Driver: You’re at a stop light, and a driver rear-ends you. When the police arrive, it’s discovered that the at-fault driver has no car insurance. Your UM bodily injury coverage would pay for your medical treatment, lost wages, and pain and suffering, while UM property damage would handle your car repairs.
- Pedestrian Hit by Uninsured Driver: You are walking in a crosswalk and are struck by a car whose driver has no insurance. Your personal UM bodily injury coverage (even if you weren’t in your car) would cover your medical bills and recovery costs.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured Motorist (UIM) coverage is similar, but it applies to a different problem. It protects you when the at-fault driver has insurance, but their policy limits are too low to cover the full extent of your damages.
With the rising costs of medical care and vehicle repairs, it’s easy for expenses to exceed the state-minimum liability limits many drivers carry.
Imagine your medical bills after a crash are $60,000. The driver who hit you only has the state minimum bodily injury limit of $25,000. Without UIM coverage, you would be responsible for finding a way to pay the remaining $35,000 yourself. If you have UIM, it would kick in to help cover that shortfall, protecting your savings and assets.
When you may need underinsured motorist coverage:
- Serious Injury, Minimal Coverage: You are involved in a head-on collision where the other driver is at fault. Your medical bills quickly escalate to $100,000, but the at-fault driver only carries the state minimum bodily injury liability of $30,000. Your UIM coverage would then kick in to cover the remaining $70,000 of your medical expenses, preventing you from having to pay out-of-pocket.
- Expensive Vehicle Damage and Injuries: Another driver causes an accident that totals your new car (worth $45,000) and leaves you with $15,000 in medical bills. The at-fault driver has property damage limits of $25,000 and bodily injury limits of $25,000. Your UIM property damage would cover the $20,000 shortfall for your car, and your UIM bodily injury would cover the $15,000 for your medical bills.
- Multiple Victims, Limited Coverage: You and two passengers are injured in an accident caused by another driver. Your collective medical bills amount to $70,000. The at-fault driver has a bodily injury liability limit of $50,000 per accident. Once their policy pays out its maximum, your UIM coverage would cover the remaining $20,000 in medical expenses for you and your passengers, distributed based on your policy terms.
Why Drivers Get UM/UIM Coverage
For many drivers, getting UM/UIM insurance isn’t a choice– it’s a requirement. However, the mandated coverage types and limits vary by state, as seen in the table below*.
| State | Minimum Requirement |
|---|---|
|
Connecticut |
UMBI: $25,000 per person, $50,000 per accident
|
|
District of Columbia |
UMBI: $25,000 per person, $50,000 per accident; UMPD: $5,000 per accident
|
|
Illinois |
UMBI: $25,000 per person, $50,000 per accident
|
|
Kansas |
UMBI: $25,000 per person, $50,000 per accident |
|
Maine |
UMBI: $50,000 per person, $100,000 per accident |
|
Maryland |
UMBI: $30,000 per person, $60,000 per accident; UMPD: $15,000 per accident |
|
Massachusetts |
UMBI: $20,000 per person, $40,000 per accident |
|
Minnesota |
UMBI: $25,000 per person, $50,000 per accident |
|
Missouri |
UMBI: $25,000 per person, $50,000 per accident |
|
Nebraska |
UMBI: $25,000 per person, $50,000 per accident |
|
New Hampshire |
UMBI: $25,000 per person, $50,000 per accident; UMPD: $25,000 per accident |
|
New York |
UMBI: $25,000 per person, $50,000 per accident |
|
North Carolina |
UMBI: $30,000 per person, $60,000 per accident; UMPD: $25,000 per accident |
|
North Dakota |
UMBI: $25,000 per person, $50,000 per accident |
|
Oregon |
UMBI: $25,000 per person, $50,000 per accident |
|
South Carolina |
UMBI: $25,000 per person, $50,000 per accident; UMPD: $25,000 per accident |
|
South Dakota |
UMBI: $25,000 per person, $50,000 per accident |
|
Vermont |
UMBI: $50,000 per person, $100,000 per accident; UMPD: $10,000 per accident |
|
Virginia |
UMBI: $25,000 per person, $50,000 per accident; UMPD: $20,000 per accident |
|
West Virginia |
UMBI: $25,000 per person, $50,000 per accident; UMPD: $25,000 per accident |
|
Wyoming |
UMBI: $25,000 per person, $50,000 per accident |
*This information was sourced from Insurance Business and is subject to change. Check your state’s website to confirm current requirements.
Even if UM/UIM isn’t required in your state, you may still want to find out if it’s an option. Getting this added layer of protection can be beneficial for a variety of reasons:
- You Can’t Control Other Drivers: You can be the safest driver on the road, but you can’t control the choices of others. Relying on every other driver to be properly insured is a gamble.
- It Protects Your Finances: An accident with an uninsured or underinsured driver can be financially devastating. This coverage ensures that someone else’s mistake doesn’t drain your bank account or force you into debt.
- It Offers Protection Off-the-Road: This coverage doesn’t just apply when you’re in your car. It often protects you and your family members if you’re injured by an uninsured driver as a pedestrian or a cyclist.
- It Fills in the Gaps: It’s true that there’s some overlap between UM/UIM and other types of insurance, such as collision coverage for damage to your vehicle, or health insurance for medical bills. However, it also offers unique protection, including damage to non-vehicle property, or lost wages up to a much higher limit than personal injury protection (PIP).
How to Get UM/UIM Coverage
If you decide to add Uninsured and Underinsured Motorist (UM/UIM) coverage to your auto insurance policy, it’s typically a simple process:
- Contact Your Insurance Provider: The easiest way to get UM/UIM coverage is to reach out to your current auto insurance company or agent. They can explain the options available to you, the coverage limits, and the associated costs.
- Review Your Current Policy: Before calling, take a moment to review your existing policy. This will help you understand what coverages you currently have and what you might be missing.
- Determine Appropriate Limits: Your agent can help you decide on appropriate UM/UIM limits. It’s often recommended to match your UM/UIM limits to your bodily injury liability limits, as this ensures you have similar protection for yourself as you do for others.
- Get a Quote: Ask for a quote that includes the UM/UIM coverage. Then you can weigh it against your current coverage and the added value it could provide.
- Add to Your Policy: Once you’ve reviewed the options and the quote, you can ask your agent to add the UM/UIM coverage to your existing policy. It will typically take effect immediately or on your next billing cycle.
You can also discuss UM/UIM options when you are first purchasing a new auto insurance policy or when shopping around for quotes from different providers.
Protect Yourself When Others Don’t
No one wants to think about getting into an accident, but being prepared is the best defense. Standard liability insurance only covers the damage you cause to others. Collision and comprehensive cover your vehicle. But only Uninsured and Underinsured Motorist coverages protect your body and your bank account from a driver who fails to carry adequate insurance.
Take a look at your current policy. Understanding what you’re protected against– and what you aren’t– is the first step toward building an insurance plan that truly keeps you safe on the road.
Shopping for a new insurance policy? Check out our free comparison tool to get the best deal on your coverage.
