Uninsured motorist coverage pays for your injuries and vehicle damage when the other driver has no insurance
Uninsured motorist (UM) coverage is the part of your policy that covers you if you're hit by someone who either has no insurance at all or doesn't have enough insurance to pay for what they caused. It works like this: the other driver is at fault, but they can't pay because they're uninsured. Your own UM coverage steps in and pays your medical bills, lost wages, and pain and suffering up to your policy limit.
This is different from liability coverage, which pays for damage you cause to someone else. UM coverage protects you from being left with unpaid bills when the person who hit you has nothing to collect from.
How common is this? The Insurance Research Council estimates that roughly one in eight drivers on the road is uninsured, though the rate varies by state. Some states are higher, some lower. The point is: it happens often enough that most insurance companies and many states require you to carry it or actively reject it in writing.
Key Takeaways
- Uninsured motorist coverage pays your medical expenses and vehicle repair costs when the at-fault driver has no insurance or insufficient coverage.
- You can reject UM coverage in most states, but you must do so in writing—straightforward not buying it is not the same as declining it.
- Your UM coverage limit is separate from your liability limit and is set by you when you buy the policy.
- If the other driver is uninsured, you file a claim with your own insurance company, not theirs, and your insurer may investigate the accident.
How uninsured motorist coverage actually works after an accident
After an accident, you report it to your insurance company as you normally would. You provide your account of what happened, photos, police report if there is one, and witness information. Your insurer will investigate to confirm the other driver was at fault and that they are genuinely uninsured.
Once they confirm the other driver has no insurance, your UM coverage kicks in. Your insurer pays your medical bills, repair costs for your vehicle, and compensation for pain and suffering—all up to the limit you chose when you bought the policy. If your medical bills exceed your UM limit, you may have to cover the difference yourself, which is why the limit you choose matters.
The process can take weeks or months, depending on how serious your injuries are and how much investigation is needed. If your injuries are minor, it may move faster. If you need ongoing medical care, your insurer may wait until you've finished treatment before settling your claim.
The difference between uninsured and underinsured motorist coverage
Underinsured motorist (UIM) coverage is related but separate. It covers you when the at-fault driver has insurance, but their liability limit is too low to pay for all your damages. For example, if the other driver has $25,000 in liability coverage but your medical bills and pain and suffering total $60,000, your UIM coverage makes up the gap—up to your UIM limit.
Some policies combine these into one coverage (called UMUM or combined single limit), and some keep them separate. When they're separate, you can set different limits for each. Many people set their UIM limit equal to or higher than their liability limit, since underinsured drivers are common.
Both UM and UIM coverage also typically cover hit-and-run accidents, where the other driver leaves the scene and is never identified. You'll need to report the accident to police and provide your insurer with a police report number.
What your UM coverage limit means and how to choose one
Your UM limit is the maximum your insurance company will pay out under this coverage. Common limits are $25,000, $50,000, $100,000, or higher. The limit you choose should reflect what you think you'd need if you were seriously injured by an uninsured driver.
Consider your own medical costs, your income (in case you can't work during recovery), and what you think your pain and suffering is worth. If you have significant assets, a higher limit protects you better. If you have minimal assets and low income, a lower limit may be what you can afford—but understand that it may not cover everything.
Many insurance agents recommend setting your UM limit at least equal to your liability limit. The logic is: if you're willing to pay up to $50,000 for damage you cause to someone else, you should protect yourself for at least that much if someone uninsured hits you.
States where uninsured motorist coverage is required or optional
About half of U.S. states require you to carry UM coverage as part of your auto insurance policy. The other half make it optional, but even in optional states, your insurer must offer it to you—you have to actively decline it in writing if you don't want it.
In states where it's required, you cannot straightforward skip it. In states where it's optional, many people choose to add it because the cost is usually modest (often $10 to $30 per month depending on your limit and location), and the protection is substantial.
A few states have different rules: some allow you to reject UM coverage only if you have other insurance that covers uninsured drivers, and some require you to carry it at a minimum level. Your insurance agent or your policy documents will tell you what applies where you live.
What happens if you don't have uninsured motorist coverage
If you're hit by an uninsured driver and you don't have UM coverage, you have limited options. You can sue the uninsured driver in small claims or civil court, but most uninsured drivers have few assets to collect from. You may win a judgment and never see the money. You can file a claim with your own health insurance or medical payment coverage (if you have it), but that only covers medical bills, not vehicle damage or pain and suffering.
You could also pursue a claim through your collision or comprehensive coverage if you have it, but those have deductibles and don't cover injuries. In short, without UM coverage, you often end up paying out of pocket for an accident that wasn't your fault.
This is why most insurance professionals recommend carrying UM coverage, especially if you have a car loan or lease (your lender may require it) or if you have dependents who rely on your income.
How UM coverage interacts with your other insurance
Uninsured motorist coverage works alongside your other coverages but doesn't duplicate them. If you have medical payment coverage (med pay), both can pay for your medical bills, but med pay typically pays first and up to a lower limit. UM coverage is broader—it covers pain and suffering, lost wages, and other damages that med pay doesn't.
If you have collision coverage, it will pay for vehicle damage regardless of who's at fault. UM coverage also covers vehicle damage, but only if the other driver is uninsured. If both explore, your insurer will coordinate the payments so you don't collect twice for the same damage.
Your health insurance may also pay for medical treatment from the accident. Again, your insurer will coordinate so that you're made whole but not overpaid. This process is called subrogation, and it's built into most policies.
Frequently Asked Questions
Do I have to carry uninsured motorist coverage?
It depends on your state. About half of U.S. states require it; the other half make it optional. Even in optional states, your insurer must offer it to you. If you decline it, you must do so in writing—straightforward not buying it doesn't count as a legal rejection in most places.
What if the other driver has insurance but it's not enough to cover my damages?
That's where underinsured motorist (UIM) coverage comes in. UIM pays the difference between what the other driver's liability coverage pays and your actual damages, up to your UIM limit. Many policies combine UM and UIM into one coverage.
Can I use uninsured motorist coverage for a hit-and-run accident?
Yes, in most cases. You'll need to report the accident to police and provide your insurer with the police report number. Your insurer will investigate to confirm you did everything you could to identify the other driver before approving the claim.
How much does uninsured motorist coverage cost?
The cost varies by state, your age, driving record, and the limit you choose, but it's typically $10 to $30 per month. It's one of the cheaper add-ons to an auto policy, which is why many people include it even in states where it's optional.
What if I'm partially at fault for the accident?
Your UM coverage will still pay, but the amount may be reduced based on your percentage of fault. This varies by state—some use comparative negligence (your payment is reduced by your percentage of fault) and some use contributory negligence (you may recover nothing if you're found partially at fault). Your insurer will explain how this works in your state.