What Is Uninsured Motorist Coverage?
Uninsured motorist insurance (UM/UIM) protects you financially when you are injured in an accident caused by a driver who either has no insurance or whose coverage is insufficient to pay for your damages. Despite laws requiring auto insurance in 49 of 50 states, approximately 14% of U.S. drivers remain uninsured. Uninsured motorist insurance closes that gap so you are not left paying out of pocket for someone else’s negligence.
There are two main sub-types. UMBI (Uninsured Motorist Bodily Injury) covers medical expenses, lost wages, and pain and suffering for you and your passengers. UMPD (Uninsured Motorist Property Damage) covers damage to your vehicle, though it is not available in all states. UIM coverage kicks in when the at-fault driver has insurance but their limits are too low to cover your losses.
Here is how UIM works in practice: another driver runs a stop sign and hits you, causing $80,000 in injuries. They carry only 25/50 liability — paying a maximum of $25,000 toward your claim. Your UIM coverage fills the $55,000 gap up to your own policy limits. Without UIM, you would need to sue the at-fault driver personally for the remainder — and if they have no assets, you may never collect.
What UM/UIM Covers
UM/UIM covers your medical bills including hospital stays, surgeries, and rehabilitation. It covers lost wages from inability to work, pain and suffering, and passenger injuries. It also covers hit-and-run accidents — a driver who flees the scene is treated as uninsured in most states. If you are hit by an uninsured driver while walking or cycling, your UM policy can still apply.
In states that offer UMPD, your vehicle repair or replacement costs are also covered. UMPD typically carries a lower limit than UMBI (often $25,000) and may have a small deductible. In states without UMPD, you need collision coverage to protect your vehicle against uninsured drivers. Some states like Virginia and West Virginia offer UMPD with a $200 deductible as a cheaper alternative to collision for drivers on a budget.
What UM/UIM Does Not Cover
UM/UIM does not cover your vehicle damage in states that do not offer UMPD — you would need collision coverage for that. It does not cover damage to the other driver’s property, your own at-fault accidents, or injuries covered by workers’ compensation. Vehicles you own but did not insure are typically excluded if you are occupying them at the time of the accident.
UM/UIM also does not apply when the at-fault driver is identified and carries sufficient insurance. In that case, their liability coverage pays your claim. UM/UIM is specifically designed for the gap where the other party cannot pay. In some states, you must exhaust the at-fault driver’s liability limits before your UIM coverage kicks in (called an “offset” or “excess” approach), while other states pay the difference between the at-fault driver’s limits and yours (the “gap” approach).
Who Needs UM/UIM Coverage?
UM/UIM is recommended for all drivers, but it is especially critical in states with high uninsured driver rates. According to the Insurance Research Council, one in three U.S. drivers (33.4%) were either uninsured or underinsured in 2023. The national uninsured rate stands at 15.4% — up from 11.6% in 2019.
States with the highest uninsured driver rates include:
- Mississippi: 28.2% uninsured
- New Mexico: 24.1%
- Washington D.C.: 23.1%
- Michigan: 22.5%
- Tennessee: 22.0%
- Alabama: 20.5%
- Washington State: 19.8%
Even in states with low uninsured rates like New Jersey (3.1%) and Massachusetts (3.5%), underinsured drivers are a significant risk. A driver carrying state minimums of 15/30 is technically insured but may as well be uninsured if they cause a serious accident with $200,000 in injuries. Drivers without robust health insurance and high-mileage commuters should strongly consider this coverage.
How Much Does UM/UIM Cost?
UM/UIM is one of the most affordable add-ons, averaging approximately $50 to $75 per year (about $4 to $6 per month). Cost varies by state and coverage limits chosen. Given that one in seven drivers on the road has no insurance at all, UM/UIM offers some of the highest value per premium dollar of any coverage available.
Stacking vs. non-stacking is an important distinction. Stacked coverage multiplies your UM/UIM limits by the number of vehicles on your policy — for example, a $50,000 limit times 3 vehicles gives you $150,000 in available coverage. Non-stacked coverage keeps your limit fixed regardless of vehicle count. Stacking costs more but provides significantly higher protection for multi-car households.
Not all states permit stacking. States that allow stacking include Pennsylvania, New Jersey, Florida, Ohio, and several others. In Pennsylvania, stacking is the default unless you specifically waive it in writing. If you have multiple vehicles, check whether your state allows stacking — the incremental cost is often minimal compared to the substantial additional protection it provides.
Is UM/UIM Required?
22 states plus Washington D.C. require UM coverage in some form, and 14 states specifically require UIM coverage. Key states include Connecticut, Illinois, Kansas, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina, Oregon, South Carolina, Virginia, and Wisconsin.
Several states recently increased their UM/UIM minimums: California raised limits to match new liability minimums (30/60) in January 2025, North Carolina moved to 50/100 in July 2025, Virginia made UM/UIM a minimum requirement in January 2025, and New Jersey minimums increase to 35/70 in January 2026. The trend mirrors rising liability minimums — as states raise the floor for liability coverage, UM/UIM requirements follow.
In states where UM/UIM is optional, many insurers include it by default and require you to actively decline it in writing. This “opt-out” approach exists because regulators recognize how critical this coverage is. Financial advisors almost universally recommend carrying UM/UIM limits that match your liability limits. If you carry 100/300 liability, carry 100/300 UM/UIM as well — the cost difference for matching limits is typically less than $30 per year.
Compare UM/UIM Rates
Given the low cost and high value of UM/UIM coverage, most experts recommend carrying limits that match your liability limits. Compare quotes to find the best rate — start with our company reviews to see how insurers in your state stack up.
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Frequently Asked Questions
How much does uninsured motorist insurance cost?
Uninsured motorist insurance typically costs $20 to $60 per year. However, rates depend on your state and coverage limits. For example, states with higher percentages of uninsured drivers like Mississippi and Michigan tend to have higher premiums.
Is uninsured motorist insurance required?
Approximately 20 states require uninsured motorist coverage. However, even in states where it is optional, insurers must offer it and you must sign a written rejection to decline. In most cases, experts strongly recommend carrying this coverage regardless of your state’s laws.
Does uninsured motorist insurance cover hit-and-run accidents?
Yes, uninsured motorist bodily injury coverage typically covers hit-and-run accidents. However, some states require physical contact between the vehicles to qualify. For example, if a phantom driver forces you off the road without touching your car, coverage rules vary by state.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault driver has no insurance at all. Underinsured motorist coverage applies when their limits are too low to cover your damages. Typically, both coverages are sold together as a single UM/UIM package.
Sources
- Insurance Research Council — Uninsured and Underinsured Motorists 2017-2023
- Insurance Information Institute — Uninsured Motorists Facts
- Bankrate — Uninsured Motorist Statistics