What Is Uninsured Motorist Coverage?

According to a study published by the Insurance Research Council in 2021, one out of every eight drivers may not have car insurance. And what if you're hurt in a car accident caused by someone who doesn't have liability car insurance? Health bills and health insurance deductibles will leave you with significant out-of-pocket expenses.

If your injuries prevent you from working, you may lose money.

Fortunately, there are several forms of car insurance coverage that can help with this: Uninsured motorist (UM) and underinsured motorist (UIM) compensation pays for medical costs and other expenses for you and your passengers if you and your passengers are involved in a car accident caused by:

A driver that is not covered by liability car insurance.
A driver who does not have sufficient liability insurance to cover the medical expenses
A driver whose insurance provider refuses to compensate him or cancels his policy.

Uninsured motorist compensation will cover the following expenses:

Medical expenses
Lost earnings if you are unable to work as a result of the car crash.
Compensation for pain and suffering
Expenses for the funeral
Car injury compensation, also known as uninsured motorist property damage coverage, is available in some jurisdictions.

Some states mandate uninsured motorist coverage, while others ask the insurance provider to make the coverage available to you, which you can usually decline in writing. If your state makes it optional, it's worth thinking about because UM is normally a nice coverage to have.

Breaking Down Uninsured Motorist Coverage Variations

Uninsured motorist coverage encompasses four different categories of coverage:

Uninsured motorist bodily injury (UM or UMBI) — pays when an at-fault driver causes a car accident.
Uninsured motorist property damage (UMPD) — protects the vehicle from damage caused by someone who doesn't have insurance. You may use UMPD to cover hit-and-run crashes in some jurisdictions.
Underinsured motorist bodily injury (UIM or UIMBI) — pays If another driver causes a traffic accident but does not have enough liability insurance to cover all of the medical costs, missed income, and other expenses.
Underinsured motorist property damage (UIMPD) — protects the vehicle from damage caused by someone who does not have enough liability insurance.

Uninsured Motorist Coverage Limits

In most cases, UM coverage is expressed as a two-digit number, such as 100/300. This is what it means:

Each individual is covered for $100,000 in bodily injury.
Per accident, $300,000 in bodily injury compensation is given.

So, if you have a 100/300 policy and four passengers are injured, the maximum UM payout is $300,000. After your UM policy has run out, you will usually switch to health insurance.

How Much Uninsured Motorist Coverage Do I Need?

When getting auto insurance quotes, if your state needs uninsured motorist compensation, you'll need to buy at least the state's minimum. UM compensation in sums that fit the liability coverage amounts is usually the bare minimum. For example, if the liability limits are $100,000 per person injured and $300,000 per accident, you can purchase 100/300 in UM coverage.

Here's a list of uninsured motorist coverage standards by state.

State Laws for Uninsured Motorist Coverage

State	Requirements for buying UM or being offered UM	Can you reject UM in writing?	Minimum UM coverage amount	Is UMPD required? If so, minimum coverage amount	UMPD deductible
Alabama	Must be offered	Yes	25/50	No	N/A
Alaska	Must be offered	Yes	50/100	You can reject UMPD in writing; $25,000 minimum if you buy it	$250
Arizona	Must be offered	Yes, on a state-approved form	UM 15/30	No	n/a
Arkansas	UM must be offered. UIM must be offered if you buy UM.	Yes	UM - 25/50	You can reject UMPD in writing; $25,000 minimum if you buy it	$200
California	Must be offered	Yes	15/30	You can reject UMPD coverage	If you have collision coverage, UMPD only pays the deductible not covered by collision insurance, up to $3,500.
Colorado	Must be offered	Yes	25/50	May be offered at your request	N/A
Connecticut	Must be offered	Yes	20/40	No	N/A
Delaware	Must be offered	Yes	15/30	Acceptance of UM includes UMPD; $5,000	$250 (unless otherwise agreed in writing)
District of Columbia	UM is required	You can reject only UIM	UM - 25/50	Yes; $5,000	$200
Florida	Must be offered	Yes	10/20	N/A	N/A
Georgia	Must be offered	Yes	25/50	Yes; $25,000	$250
Hawaii	Must be offered	Yes	UM - 20/40	Yes; $10,000	N/A
Idaho	Must be offered	Yes	UM - 25/50	N/A	N/A
Illinois	Required	No	UM - 25/50	UMPD must be offered if you do not have collision insurance (you can reject in writing); $15,000	$250
Indiana	Must be offered	Yes	UM - 25/50 UIM - $50,000	You can reject UMPD; $10,000	Choose no deductible or a max of $300; deductible waived if your car was hit while legally parked and unoccupied
Iowa	Must be offered	Yes	UM - 20/40	N/A	N/A
Kansas	Required	You can only reject coverage that exceeds 25/50	25/50	N/A	N/A
Kentucky	UM must be offered; UIM is available upon request	Yes	25/50 or a $60,000 single limit for both UM and UMPD	N/A	N/A
Louisiana	Must be offered	Yes	15/30	UMPD available but not required	$250
Maine	Required	N/A	50/100	N/A	N/A
Maryland	Required	N/A	30/60	UMPD is required; $15,000	$50 - $250 (options in $50 increments)
Massachusetts	Required	N/A	20/40	N/A	N/A
Michigan	No requirement	N/A	N/A	N/A	N/A
Minnesota	Required	N/A	UM - 25/50	N/A	N/A
Mississippi	Must be offered	Yes	25/50	UMPD can be rejected; $25,000 minimum if you buy it	$200
Missouri	UM required	N/A	25/50	N/A	N/A
Montana	Must be offered	Yes	25/50	N/A	N/A
Nebraska	Required	N/A	UM - 25/50	N/A	N/A
Nevada	Must be offered	Yes	25/30	N/A	N/A
New Hampshire	Must be offered	You can reject UM in excess/umbrella policies only	25/50	Yes; $25,000	N/A
New Jersey	Required on standard policies	N/A	UM - 15/30	Yes; $5,000	N/A
New Mexico	Must be offered	Yes	25/50	Yes; $10,000	$250 maximum
New York	UM required, UIM is optional	N/A	25/50 for injury, 50/100 for death	N/A	N/A
North Carolina	UM required. UIM required if UM coverage exceeds 30/60	N/A	UM - 30/60	Yes; $25,000	$100
North Dakota	Required	N/A	25/50	N/A	N/A
Ohio	An insurer decides whether to offer it	N/A	25/50	Available upon your request, not to exceed $7,500	$250
Oklahoma	Must be offered	Yes	25/50	N/A	N/A
Oregon	UM is required. UIM is required if UM coverage is more than 25/50	N/A	25/50	Yes; $20,000	$200; $300 in hit-and-run claims
Pennsylvania	Must be offered	Yes	15/30	N/A	N/A
Rhode Island	Must be offered	Yes	25/50	Not required but $25,000 minimum coverage if you buy it	$200
South Carolina	UM is required	You can reject UIM	25/50	Yes; $25,000	$200
South Dakota	Required	N/A	25/50	N/A	N/A
Tennessee	Must be offered	Yes	25/50 or a $60,000 single limit	Yes; 15	$200
Texas	Must be offered	Yes	30/60	Yes; $25,000	$250
Utah	Must be offered	Yes	25/65 for UM; 10/20 for UIM	Required if you do not have collision coverage	$250
Vermont	Required	N/A	50/100	Yes; $10,000	$150
Virginia	Required	N/A	25/50	Yes; $20,000	$200
Washington	Must be offered	Yes	25/50	Required if you don’t have collision coverage, minimum of $10,000 in coverage	$100; $300 for hit-and-run claims
West Virginia	UM is required; UIM is optional	N/A	20/40	Yes; $10,000	$300
Wisconsin	UM is mandatory	UIM can be rejected	25/50 for UM; 50/100 for UIM	N/A	N/A
Wyoming	Must be offered	Yes	25/50	N/A	N/A
Source: American Property Casualty Insurance Association

Is Uninsured Motorist Coverage Necessary?

You might be wondering if you should add UM coverage to your auto insurance policy if your state doesn't need it.

Here are some options for making a decision:

Do you have other insurance to cover car accident injuries? The primary purpose of uninsured motorist compensation is to cover medical expenses incurred as a result of a traffic accident caused by an uninsured driver. You do not think you need UM coverage if you have good health insurance. However, UM could be appealing if you have a high deductible insurance plan and will spend a significant sum of money for a hospitalization.

UM is a way to cover car accident injuries without having to pay co-insurance, copays, or deductibles from your health insurance. UM also offers certain benefits not covered by health insurance, such as compensation for pain and distress and missed earnings.

According to the most recent survey from the National Association of Insurance Commissioners, the total UM claim payout for injuries is $29,825.

Do you have other insurance to cover car damage? You do not need uninsured motorist property damage compensation in states where it is available. Collision insurance will cover damage to the car if it is struck by another vehicle, and it will cover a wide range of situations, not just an uninsured driver.

Is there a high number of uninsured drivers in your state? According to the Insurance Research Council, one out of every eight drivers in the United States is uninsured, but there is significant difference among states. Mississippi has the highest uninsured driver rate (29.4%), while New Jersey has the lowest (3.1%).

Estimated Percentage of Uninsured Drivers by State

State	Percentage of uninsured drivers
Mississippi	29.4%
Michigan	25.5%
Tennessee	23.7%
New Mexico	21.8%
Washington	21.7%
Florida	20.4%
Alabama	19.5%
Arkansas	19.3%
District of Columbia	19.1%
California	16.6%
Rhode Island	16.5%
Missouri	16.4%
Colorado	16.3%
Alaska	16.1%
Indiana	15.8%
Maryland	14.1%
Kentucky	13.9%
Oklahoma	13.4%
Wisconsin	13.3%
Idaho	13.2%
Ohio	13.0%
North Dakota	13.0%
Georgia	12.4%
Arizona	11.8%
Illinois	11.8%
Louisiana	11.7%
Iowa	11.3%
Kansas	10.9%
South Carolina	10.9%
Oregon	10.7%
Virginia	10.5%
Nevada	10.4%
Minnesota	9.9%
Hawaii	9.3%
Nebraska	9.3%
West Virginia	9.2%
Vermont	8.8%
Montana	8.5%
Delaware	8.5%
Texas	8.3%
South Dakota	7.4%
North Carolina	7.4%
Utah	6.5%
Connecticut	6.3%
New Hampshire	6.1%
Pennsylvania	6.0%
Wyoming	5.8%
Maine	4.9%
New York	4.1%
Massachusetts	3.5%
New Jersey	3.1%
Source: Insurance Research Council, 2021 report

Are Hit-and-Run Accidents Covered by UM?

A hit-and-run accident occurs when a driver leaves the scene of an accident without sharing insurance details or contact information. A hit-and-run will happen when:

Cars
A car and personal items, such as a fence or mailbox
A pedestrian and a motorcycle

Uninsured motorist insurance can cover damages if you're the victim of a hit-and-run, depending on your state. A hit-and-run is usually compensated by one of two forms of uninsured motorist coverage:

When your car or property is destroyed in a hit-and-run collision, uninsured motorist property damage accounts for the repairs.
If you're hurt in a hit-and-run collision, uninsured motorist bodily injury pays the medical bills.

Keep in mind that UMPD isn't available in every jurisdiction, and even in those that do, it does not include hit-and-run collisions. There could be a deductible if your state mandates UMPD coverage for hit-and-run collisions.

Although UMPD coverage for hit-and-run collisions is not available in the following states, you can use your collision coverage to pay for car repairs:

California.
Colorado.
Georgia.
Illinois.
Louisiana.
Ohio.

Here are some things you should do if you've been the victim of a hit-and-run:

- Stop in a secure place. Ascertain that you and your passengers are in good health. Chasing the other driver is not a good idea.
- Take down as much information as you can about the accident. Even if you didn't see the license plate, a description of the vehicle (make, model, colour) and driver will help with an insurance claim. Take down the date, time, and place of the accident, as well as any eye witnesses' contact details.

Call the cops.

Take pictures of the damage to your vehicle and the surrounding area.

Contact your insurance provider.

Should I Buy UM Coverage for Property Damage?

If you do have accident insurance, you generally don't need UMPD unless your state needs it. This is because collision liability covers damage to the vehicle regardless of who caused the collision. UMPD only pays under some circumstances, so it could have a lower deductible than the collision deductible you choose.

According to the most available data from the National Association of Insurance Commissioners, the total claim payment for UMPD is $1,805.

What Does it Mean to “Stack” Insurance?

When you file a claim on two uninsured motorist plans, this is known as stacked insurance. If you're involved in a car accident, stacking helps you to get more insurance coverage to cover your medical costs. Some auto insurance companies have a "anti-stacking clause," which means you won't be able to make multiple UM claims for the same car accident.

If you can stack insurance, you can do so in one of two ways:

Stack coverage for two vehicles covered by the same scheme.
Stack coverage for two vehicles under two different policies under your name.

Here are some examples of how stacking might be used.

Stacking insurance within one policy

Assume you have two vehicles covered by the same auto insurance policy, each with $100,000 in uninsured motorist bodily injury coverage. If you're hurt in an accident with one of your cars caused by an uninsured driver, you can "stack" coverage and get up to $200,000 in compensation.

Stacking insurance from two policies

In this case, you have coverage for two vehicles with two different plans, each with $100,000 in uninsured motorist coverage. If you're hurt when an uninsured driver hits one of your cars, you can stack up to $200,000 in UM insurance. You must have both policies in your name.

Here are a few more things to think about when it comes to insurance stacking:

To stack, you usually have to pay more. When you purchase or renew a policy, you must also choose stacking. After an accident, you can't add or use stacking.
UM policy protects you in the event of a traffic accident caused by someone else. You cannot seek UM benefits or stack them if you are involved in a car accident that you caused.

If you're filing a claim for uninsured motorist coverage, follow these steps:

You can make a claim for your own UM coverage for medical costs if you were involved in a car accident with a driver that did not have liability insurance. If it doesn't cover all of your medical expenses, you can add UM coverage from another vehicle you own or a car insurance policy under your name.
If you're hurt in a car accident and the other driver has liability insurance, so it doesn't cover any of your medical expenses, you'll first file a lawsuit for your injury against the other driver's liability insurance. When that policy's full coverage has been exhausted, you'll need to rely on your own UIM coverage. If one of your UIM coverages is exhausted, you can stack from another vehicle you own or a car insurance policy in your name.

Understand the Payout from an Uninsured Motorist Claim

It's a good idea to know how uninsured motorist claims work in general so you're not surprised if you get less than you anticipated. The amount of money you earn from another driver's liability insurance reduces the amount of underinsured motorist compensation you can demand. Consider the following scenario:

Let's say you have $100,000 in UM coverage and $50,000 in liability insurance from the other driver, and your total medical expenses are $300,000. Your UM plan will most likely only pay out $50,000 ($100,000 UM – $50,000 at-fault driver's liability), leaving you out of pocket for $200,000 in damages. In most cases, you do not receive the maximum amount of UM ($100,000) or the driver's liability coverage ($50,000). In this case, you would predict $150,000 in total from insurers but instead receive $100,000.

There are exceptions in some jurisdictions, such as Connecticut. Connecticut drivers can purchase UM "conversion" coverage, which means their UM payout will not be limited by the liability insurance of the at-fault driver. A driver with conversion coverage will receive their entire UM ($100,000) plus the other driver's liability settlement ($50,000) for a total of $150,000 in the accident scenario above.

Georgia, for example, provides you with a variety of options. “Uninsured motorist coverage—added to at-fault liability limits” is available to Georgia drivers. You can opt for “uninsured motorist coverage—reduced by at-fault liability limits” instead, which you can refuse in writing.

How Do I Make an Uninsured Motorist Claim?

If you're in a car accident and the at-fault driver doesn't have any or enough liability insurance, call the car insurance provider and make a claim under your uninsured motorist policy (provided you have coverage).

Here are some examples of UM lawsuits and injuries.

You're stopped at a red light when a car without insurance rear-ends you. File a UM claim through the auto insurance provider because the at-fault driver does not have insurance. For your medical bills, you'd file a claim under your uninsured motorist bodily injury (UMBI) coverage, and for damage to your vehicle, you'd file a claim under your uninsured motorist property damage (UMPD) coverage, if you have it.

You're a pedestrian crossing the street when you're struck by a driver who doesn't have enough liability insurance to cover all of your medical bills. To begin, file a claim with the at-fault driver's car insurance provider or sue the at-fault driver to recover money from their liability insurance. Then, to cover extra costs, you'd file a claim with your own auto insurance provider under your underinsured motorist bodily injury (UIMBI) coverage.

Your car is parked in a parking garage that is open to the public. You discover it has been struck and destroyed, but the other driver has left no contact details. You must make a lawsuit under the UMPD coverage in the event of a hit-and-run (if your state allows it). File a claim through your collision coverage if you don't have UMPD or your state doesn't authorize you to use it for hit-and-runs.