Uninsured and Underinsured Motorist Coverage

When you're in a crash caused by a driver with no insurance or not enough, medical bills and repair costs can fall on you. Uninsured motorist coverage and underinsured motorist coverage help protect you financially so you're not left paying out of pocket.

According to the Insurance Research Council, an estimated one in seven drivers in the U.S. is uninsured, putting others with insurance at greater risk in the event of an accident. The percentage of uninsured and underinsured drivers continues to increase.

In part three of our five-part series on understanding auto insurance, learn how uninsured and underinsured motorist coverage can help when another driver’s policy falls short.

Quick takeaway: Uninsured motorist coverage can help if the at-fault driver has no insurance. Underinsured motorist coverage can help if the at-fault driver has insurance, but not enough to cover the damage they caused.

What is uninsured and underinsured motorist coverage?

An uninsured motorist is a driver without insurance. An underinsured motorist is one who has enough insurance to be legally driving, but not enough to cover the damage resulting from an accident they caused.

Uninsured and underinsured motorist coverage is typically broken into three parts: uninsured motorist bodily injury (UMBI), uninsured motorist property damage (UMPD) and underinsured motorist coverage (UIM). If you’ve seen the term “UIM insurance,” it generally refers to this underinsured protection.

Uninsured motorist bodily injury (UMBI) can help pay for pain and suffering and medical bills you and your passengers incur in an accident caused by a driver who doesn’t have car insurance. It can also provide coverage if you’re injured in a hit-and-run accident or struck by an uninsured driver as a pedestrian.

Uninsured motorist property damage (UMPD) can help pay for damage to your vehicle an uninsured driver causes.

Underinsured motorist coverage (UIM) can help cover a financial gap if the at-fault driver doesn’t have adequate coverage to fully compensate you for your medical bills, pain and suffering, or vehicle damage.

Do you need uninsured motorist coverage?

Some states require uninsured motorist coverage, underinsured motorist coverage or both. Coverage availability and requirements can vary by state, so it’s important to review your local insurance requirements and policy details carefully.

Even when this coverage isn’t required, many drivers still choose it because not every driver carries enough insurance to fully cover accident-related costs.

You may be partially covered in an accident with an uninsured or underinsured driver through your collision, medical payments or personal injury protection coverage. But those coverages may not always be enough on their own.

• If you’re injured in an accident with an uninsured motorist, your own medical payments coverage or personal injury protection can help pay medical bills. That still might not be enough if injuries are severe. UMBI coverage can also help compensate you for pain and suffering.
• If your vehicle is damaged in an accident with an uninsured motorist, the collision coverage you carry can help pay for repairs. If it includes a high deductible, UMPD coverage may offer protection with a lower deductible in some situations.

If you're searching for car insurance for uninsured drivers, uninsured motorist coverage is the specific protection designed for this situation and can be helpful even if you already carry other coverages. It may fill gaps those coverages don’t fully address.

How uninsured motorist coverage compares with other auto coverages

Here’s a quick comparison of how UM/UIM coverage differs from several other common auto coverages.

If you’re comparing your broader options, it may help to review “Car Insurance Coverages”, “How Much Car Insurance Do I Need?” and “Types of Car Insurance”.

How much uninsured and underinsured motorist coverage do I need?

When you’re in an accident caused by a driver with either no auto insurance or not enough, the financial burden can add up quickly. Carrying uninsured motorist and underinsured motorist coverage on your auto insurance policy can help protect you against these losses. But how much coverage do you need? In states that require it, the amount of UM/UIM coverage typically may not be less than the state minimums or more than the Part A liability limit.

A general rule: Match your UM/UIM limits to your liability limits. If you carry higher liability limits to protect yourself financially, similar UM/UIM limits offer the same protection when the at-fault driver has too little or no insurance. The exception is property damage — if you already have collision coverage, you may not need UMPD.

UM/UIM coverage is available with most auto policies as state laws permit. Check with your insurance provider to get a clear understanding of which UM/UIM coverages are required and how much coverage you need to help safeguard yourself, your passengers and your vehicle.

What to remember: If you chose higher liability limits to better protect yourself financially, it may make sense to review whether similar UM/UIM limits would offer the same kind of protection when the at-fault driver has too little or no insurance.

Quick decision guide:

• Live in a state with a high uninsured driver rate? → UM coverage is worth a close look
• Have high liability limits but no UM/UIM? → Your protection may have a gap
• Don't carry collision coverage? → UMPD may be especially valuable

Next, consider how you can safeguard against medical costs arising from an accident. In part four of our auto coverage series, you’ll learn how medical payments coverage supports you and your passengers, regardless of who is at fault. You can also take a step back in our series to review the protections your vehicle has against damage with comprehensive and collision coverage. For a broader view of your options, explore “Car Insurance Policies” as well.