Uninsured Motorist Coverages

Uninsured Motorist Insurance: Why It’s Critical, What It Covers, and How to Save

What Is Uninsured Motorist Insurance?

Uninsured Motorist (UM) Insurance protects you when you’re involved in an accident caused by a driver who has no car insurance or not enough insurance to cover your damages. It ensures you’re not left paying out-of-pocket for injuries or damages that weren’t your fault.

There are two primary types of uninsured motorist coverage:

  1. Uninsured Motorist Bodily Injury (UMBI): Covers medical expenses, lost wages, and pain and suffering for you and your passengers.
  2. Uninsured Motorist Property Damage (UMPD): Pays for repairs to your vehicle or property after a crash with an uninsured driver.

What About Underinsured Motorist Coverage (UIM)?

Many insurers bundle underinsured motorist (UIM) coverage with UM. This kicks in when the at-fault driver has some insurance, but not enough to cover your full expenses. UIM helps bridge that gap, ensuring you’re fully compensated.

Is Uninsured Motorist Coverage Required by Law?

UM insurance is not required in every state, but it’s mandatory or partially mandatory in about 20 states, including:

  • Illinois
  • New York
  • Maryland
  • North Carolina
  • Connecticut
  • Oregon

Even where it's not required, insurers are often required to offer it, and you must sign a waiver to decline it.

Given that 1 in 8 drivers in the U.S. is uninsured, according to the Insurance Research Council, many experts recommend carrying UM coverage regardless of state law.

What Does Uninsured Motorist Insurance Cover?

Coverage Type What It Pays For
UMBI Medical bills, pain & suffering, lost wages
UMPD Vehicle repairs, property damage (varies by state)
UIM Excess costs beyond what the other driver’s insurance covers

UM/UIM generally covers:

  • Hit-and-run accidents (in most states)
  • Pedestrians or bicyclists hit by an uninsured driver
  • Passengers in your vehicle injured by an uninsured or underinsured driver

What It Doesn’t Cover

  • Damage to your car (unless you have UMPD or collision insurance)
  • Injuries you cause to others
  • Mechanical issues unrelated to accidents
  • Personal belongings inside the car (may be covered by renters/homeowners insurance)

How Much Does Uninsured Motorist Coverage Cost?

Uninsured motorist coverage is typically affordable, especially compared to the financial risk it mitigates.

Coverage Type Average Annual Cost
UMBI $50–$75 per year
UMPD $20–$50 per year
UIM (bundled) $60–$100 per year (varies by state)

The cost depends on:

  • Your location (states with higher uninsured rates have higher premiums)
  • Coverage limits
  • Your driving history
  • Vehicle value (for UMPD)
  • Whether your state requires the coverage

Recommended Coverage Limits

Experts often recommend matching your UM/UIM coverage to your liability limits (commonly 100/300/100) to ensure you're not underinsured in a serious accident.

Why You Need Uninsured Motorist Insurance

Without UM coverage, you're left paying your own medical bills and car repairs if hit by an uninsured or hit-and-run driver. Even with health insurance, you could face:

  • High deductibles and copays
  • No reimbursement for lost income
  • No coverage for pain and suffering
  • No protection for passengers

UM coverage gives you control over your own financial protection, regardless of someone else’s irresponsibility.

Ways to Save on Uninsured Motorist Insurance

  1. Bundle Your Policies: Combine auto with home or renters insurance.
  2. Raise Your Deductibles (where applicable): Some UMPD coverage has deductibles.
  3. Maintain a Clean Driving Record: Avoid claims and violations.
  4. Compare Quotes from Multiple Insurers: UM pricing varies by carrier.
  5. Ask About Group Discounts: Employer or alumni associations may help.
  6. Use Telematics: Some insurers offer savings based on driving behavior.

Common Myths About UM Insurance

  • “I have health insurance I don’t need UMBI.”
    UM covers more than just hospital bills, including lost wages, legal costs, and pain & suffering.
  • “It’s too expensive.”
    UM is one of the most cost-effective coverages available, especially considering the risk.
  • “It’s optional, so it’s not important.”
    In reality, it's often more important than collision coverage, particularly in hit-and-run scenarios.

Final Thoughts

Uninsured motorist insurance is a safety net against the unknown protecting you when others fail to act responsibly. It's not legally required in every state, but it often fills a critical gap in your auto insurance coverage.

For just a few dollars a month, it ensures that you, your passengers, and your vehicle are financially protected against drivers who carry little or no insurance. Given how common uninsured and underinsured drivers are, this coverage is not just smart it's essential.

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