Uninsured and Underinsured Motorist Coverage: What It Is and When It Helps

4 min read

Insurance requirements are meant to make sure drivers can pay for the harm they cause, but not every driver follows them, and some carry only a small amount of coverage. Uninsured and underinsured motorist coverage is designed to help protect you in those situations. Because it works differently from state to state, it is worth understanding before you need it.

Road Cover Pro is an advertising and referral service. It is not an insurance company and does not set rates or decide coverage. Rules and policy terms vary, so confirm the details with your insurer or a licensed agent.

What the Coverage Does

Uninsured motorist (UM) coverage and underinsured motorist (UIM) coverage respond when another driver is at fault and cannot fully pay for your losses:

  • Uninsured motorist (UM). Helps when the at-fault driver has no insurance. It can also apply in a hit-and-run when the other driver cannot be identified.
  • Underinsured motorist (UIM). Helps when the at-fault driver has insurance, but their liability limits are too low to cover your losses.

Depending on your state and policy, this coverage can help with medical bills for you and your passengers and, in some cases, other losses such as lost wages. It can also apply if you are a pedestrian struck by an uninsured driver.

Bodily Injury vs Property Damage

Uninsured motorist coverage is often split into two parts, and not every state or insurer offers both:

  • Bodily injury (UMBI). Addresses injuries to you and your passengers.
  • Property damage (UMPD). Addresses damage to your vehicle and, in some policies, other property, when an uninsured driver causes it.

Uninsured motorist bodily injury coverage does not pay for your car. If you do not have UMPD, your own collision coverage, if you carry it, may be the way to pay for repairs after a crash with an uninsured driver. Our guide to collision and comprehensive coverage explains how collision works.

Is It Required?

Auto liability insurance is compulsory in almost every state, with New Hampshire the main exception, which instead has a financial responsibility law. Whether uninsured motorist coverage is required, and whether it must be offered or can be declined in writing, depends on the state, and only some states require it. Check with your state's department of insurance or a licensed agent for the rules where you live.

Why Drivers Consider It

A share of drivers on the road are uninsured, and the share differs widely by state. Even insured drivers may carry only low liability limits, and those limits may not cover a serious injury. Your own liability limits protect other people, not you. Uninsured and underinsured motorist coverage is one way to protect yourself and your passengers. For more on how limits work, see our overview of what auto insurance covers.

What to Check on Your Policy

  1. Is the coverage on your policy at all? Look for UM and UIM on your declarations page. Our guide to reading the declarations page shows where to find coverages and limits.
  2. What are the limits? They are often written as the maximum for each person and each accident.
  3. Is property damage included? Ask whether UMPD is available and what it covers.
  4. Does it cover passengers and hit-and-run? Confirm how your policy treats both.
  5. Are there notice requirements? If you are in a hit-and-run, call the police promptly and ask your insurer about any reporting deadlines.

Questions to Ask a Licensed Agent

  • Is uninsured and underinsured motorist coverage required in my state, and can I decline it?
  • What limits would make sense compared with my liability limits?
  • Does my policy cover property damage from an uninsured driver?
  • How does it apply to my passengers and to hit-and-run accidents?

If you would like a licensed agent partner to review your coverage options, you can compare options through Road Cover Pro. There is no obligation.

Sources and Further Reading

Frequently Asked Questions

What is the difference between uninsured and underinsured motorist coverage?

Uninsured motorist coverage helps when the at-fault driver has no insurance, including many hit-and-run cases. Underinsured motorist coverage helps when the at-fault driver has insurance, but not enough to cover your losses.

Does uninsured motorist coverage pay for my car?

Only if your policy includes uninsured motorist property damage coverage or you have collision coverage. Uninsured motorist bodily injury coverage applies to injuries, not to vehicle damage.

Is uninsured motorist coverage required by law?

It depends on the state. Some states require it, while in others insurers may be required to offer it and you may be able to decline it in writing. Check with your state's department of insurance.

Does it cover passengers in my car?

It commonly extends to passengers, but terms vary. Ask your insurer how your policy treats passengers.