Uninsured Motorist Coverage: What It Covers & Why It Matters
Uninsured motorist coverage protects you when an at-fault driver has no auto insurance. Underinsured motorist coverage, often offered with it, helps when the other driver has insurance but not enough to pay for the injuries or damage they caused.
This coverage matters because a serious crash can create bills that go far beyond a basic liability policy. Medical treatment, lost wages, vehicle repairs, pain and suffering, and long-term recovery costs can add up quickly. If the other driver has no insurance, you may be left chasing someone who cannot pay.
Uninsured motorist coverage can also apply to hit-and-run crashes in many situations. Depending on your state and policy, it may protect you as a driver, passenger, pedestrian, or cyclist. The rules vary by state, so it is important to understand what your policy actually covers before you need it.
Table of Contents
- Quick Answer: What Is Uninsured Motorist Coverage?
- How Uninsured Motorist Coverage Works
- UMBI, UMPD and UIM Explained
- What Uninsured Motorist Coverage Covers
- What Uninsured Motorist Coverage Does Not Cover
- What Happens If an Uninsured Driver Hits You?
- Do You Need Uninsured Motorist Coverage?
- Collision vs Uninsured Motorist Coverage
- How Much Uninsured Motorist Coverage Should You Have?
- Pros and Cons of Uninsured Motorist Coverage
- Frequently Asked Questions
| Never Use | Use Instead |
|---|---|
| Assuming every driver on the road has insurance | Carry enough uninsured and underinsured motorist protection for your risk |
| Rejecting uninsured motorist coverage only to lower the premium | Compare the savings against the possible out-of-pocket loss after a crash |
| Thinking collision coverage pays for injuries | Use UM/UIM bodily injury coverage for accident-related medical and injury costs |
| Assuming hit-and-run claims are always covered | Read your state rules and policy terms for hit-and-run requirements |
| Choosing the minimum limit without reviewing assets and medical costs | Match UM/UIM limits to your liability limits when possible |
| Waiting days to report a hit-and-run | Report the crash to police and your insurer as soon as possible |
Quick Answer: What Is Uninsured Motorist Coverage?
Uninsured motorist coverage, often called UM coverage, helps pay for injuries or damages caused by an at-fault driver who has no auto insurance. It may also apply to hit-and-run crashes, depending on your state and policy. Underinsured motorist coverage, or UIM, helps when the at-fault driver has insurance, but their limits are too low to cover your losses.
Uninsured motorist coverage is mandatory in many states, optional in others, and sometimes offered with the ability to reject it in writing. Even when it is optional, it can be one of the most practical parts of an auto policy because it protects you from another driver’s lack of coverage.
For a broader look at how much protection you may need overall, read How Much Auto Insurance Coverage Do I Actually Need?.
How Uninsured Motorist Coverage Works
In a normal at-fault accident, the other driver’s liability insurance should pay for the damage and injuries they caused, up to their policy limits. But if that driver has no insurance, there may be no liability policy available to pay you.
That is where uninsured motorist coverage can step in. Instead of relying on the uninsured driver, you file a claim with your own insurance company under your UM coverage. Your insurer then evaluates the crash, determines fault, reviews your damages, and pays covered losses up to your policy limits.
- An uninsured driver causes a crash. The other driver has no valid liability insurance or leaves the scene.
- You report the accident. File a police report and notify your insurer quickly.
- Your insurer investigates fault. Evidence may include photos, police reports, witness statements, medical records, and repair estimates.
- Your UM coverage applies if the claim qualifies. Your policy pays covered losses up to your limit.
- Your insurer may pursue recovery. The insurance company may try to recover money from the uninsured driver when possible.
UMBI, UMPD and UIM Explained
Uninsured motorist coverage is not always one single benefit. It can include bodily injury, property damage, and underinsured motorist protection depending on your state and policy.
| Coverage Type | What It Helps Pay For | When It Applies |
|---|---|---|
| UMBI | Medical bills, lost wages, pain and suffering, and injury-related losses | You or passengers are injured by an uninsured or hit-and-run driver |
| UMPD | Vehicle repairs or property damage | Your car or property is damaged by an uninsured driver |
| UIM | Injury or damage costs above the at-fault driver’s low liability limits | The other driver has insurance, but not enough to cover the full loss |
UM Bodily Injury
Uninsured motorist bodily injury coverage is often the most important part of UM protection. It may cover you, family members in your household, and passengers in your vehicle. In some policies, it may also protect you if you are hit as a pedestrian or cyclist.
UM Property Damage
Uninsured motorist property damage may help pay to repair your vehicle if an uninsured driver damages it. This coverage is not available in every state, and it may include a deductible or special rules for hit-and-run claims.
Underinsured Motorist Coverage
Underinsured motorist coverage helps when the at-fault driver has insurance, but their liability limit is too low. For example, if your medical bills and lost wages are much higher than the other driver’s policy limit, UIM may help cover the gap up to your own limit.
What Uninsured Motorist Coverage Covers
Coverage varies by state and insurer, but uninsured motorist coverage commonly helps with accident-related injury costs when an uninsured or hit-and-run driver is at fault.
Commonly Covered Losses
- Medical bills after a covered crash
- Lost wages if injuries prevent you from working
- Pain and suffering, when allowed by policy and state law
- Funeral expenses in severe accidents
- Passenger injuries in your vehicle
- Pedestrian or cyclist injuries in some situations
- Hit-and-run injuries when policy rules are met
- Vehicle repairs if you have UMPD and the claim qualifies
Important distinction: UM bodily injury is mainly about injuries. UMPD is about property damage. Collision coverage may also repair your vehicle, but it does not pay for your medical bills or lost wages.
For more basics on what happens after a severe vehicle loss, see Totaled Car Insurance 101: All the Basics You Need to Know.
What Uninsured Motorist Coverage Does Not Cover
Uninsured motorist coverage is valuable, but it is not unlimited. It does not cover every accident, every driver, or every type of loss.
Common Exclusions and Limits
- Damage above your policy limits
- Intentional damage or staged accidents
- Regular vehicle wear and tear
- Mechanical breakdowns unrelated to the crash
- Damage when you were using the vehicle for excluded commercial purposes
- Some hit-and-run property damage claims if state law requires physical contact
- Claims involving excluded drivers or vehicles not covered by the policy
- Losses that should be covered under workers’ compensation or another policy
Policy warning: Hit-and-run rules can be strict. Some states or policies require a police report, prompt claim notice, witness evidence, or physical contact with the unidentified vehicle.
What Happens If an Uninsured Driver Hits You?
If an uninsured driver hits you, take the same steps you would after any accident, but document everything carefully. Your insurer will need evidence to confirm fault, damages, and whether UM coverage applies.
- Call 911 if anyone is hurt. Get medical help first.
- File a police report. This is especially important for uninsured and hit-and-run accidents.
- Get the other driver’s information. Collect name, contact details, license plate, driver’s license, and vehicle details if possible.
- Take photos and videos. Capture vehicle damage, road conditions, skid marks, signs, injuries, and the accident scene.
- Get witness information. Independent witnesses can help prove what happened.
- Contact your insurer quickly. Ask how your UM, UIM, collision, medical payments, or personal injury protection coverage may apply.
- Keep medical and repair records. Save bills, estimates, receipts, wage-loss documentation, and claim letters.
If the other driver leaves the scene, treat it as a hit-and-run. Report it to the police and your insurer as soon as possible. Waiting too long can create problems with coverage.
Do You Need Uninsured Motorist Coverage?
Many drivers should strongly consider uninsured motorist coverage, especially if it is affordable in their state. It can protect you from a risk you cannot control: another driver choosing to drive without insurance or without enough coverage.
You May Need UM/UIM Coverage If:
- Your state has a high number of uninsured drivers.
- You commute often or drive in heavy traffic.
- You have passengers or family members in your vehicle regularly.
- You have limited health insurance or high deductibles.
- You rely on your income and cannot afford lost wages after an accident.
- You want protection as a pedestrian, cyclist, or passenger where covered.
- You do not want to depend on suing an uninsured driver personally.
Is It Good to Reject Uninsured Motorist Coverage?
Rejecting uninsured motorist coverage may lower your premium, but it also removes a major layer of protection. It may make sense only if you fully understand the risk, have strong health coverage, have enough savings to handle losses, and are comfortable paying out of pocket if an uninsured driver injures you.
Before rejecting it, compare your premium savings against the possible cost of medical bills, lost income, and legal stress after a crash.
Collision vs Uninsured Motorist Coverage
Collision insurance and uninsured motorist coverage solve different problems. Collision coverage helps repair or replace your vehicle after a covered crash, regardless of who caused it. Uninsured motorist bodily injury coverage helps pay for injuries caused by an uninsured or hit-and-run driver.
| Coverage | Best For | Does It Cover Injuries? |
|---|---|---|
| Collision | Repairing your vehicle after a crash | No, not your medical bills or lost wages |
| UMBI | Injuries from an uninsured or hit-and-run driver | Yes, up to policy limits |
| UMPD | Vehicle damage caused by an uninsured driver | No, property damage only |
| UIM | Losses above the at-fault driver’s low liability limits | Often yes, depending on policy and state |
It is not always a choice between collision and uninsured motorist coverage. Many drivers benefit from both because they protect against different financial risks.
If you are trying to balance coverage with price, read What Discounts Are Available for Car Insurance?.
How Much Uninsured Motorist Coverage Should You Have?
A common approach is to choose uninsured and underinsured motorist bodily injury limits that match your liability limits. For example, if you carry $100,000 per person and $300,000 per accident in liability coverage, you may want similar UM/UIM limits if available.
The best amount depends on your state, budget, health insurance, income, assets, family situation, and comfort with risk. Minimum limits may be legally acceptable, but they may not be enough after a serious injury.
Practical tip: If increasing UM/UIM limits costs only a small amount per month, it may be worth considering because injury claims can become expensive quickly.
Questions to Ask Before Choosing Limits
- What UM/UIM limits does my state require or offer?
- Can I match my UM/UIM limits to my liability limits?
- Does my policy include UMPD, or do I need collision for vehicle damage?
- Can I stack coverage across multiple vehicles?
- Does hit-and-run coverage require physical contact?
- Does coverage apply if I am a pedestrian, cyclist, or passenger?
- What deductible applies to UMPD?
Pros and Cons of Uninsured Motorist Coverage
Pros
- Protects you if an at-fault driver has no insurance
- May cover hit-and-run injuries
- Can help pay medical bills and lost wages
- May protect passengers in your vehicle
- Can apply when you are a pedestrian or cyclist in some cases
- Usually costs less than the financial risk it protects against
Cons
- Adds to your premium
- Coverage rules vary by state
- UMPD is not available everywhere
- Hit-and-run rules may be strict
- Policy limits may still be too low after a severe crash
- Some drivers may duplicate protection if they do not understand their policy
Helpful Car Insurance Guides
- How Much Auto Insurance Coverage Do I Actually Need?
- Totaled Car Insurance 101: All the Basics You Need to Know
- What Discounts Are Available for Car Insurance?
- Who typically has the cheapest car insurance?
- Non-Owner Car Insurance
- Umbrella Insurance: What It Is & What It Covers
Additional Resource
What does uninsured motorist coverage not cover?
Uninsured motorist coverage usually does not cover losses above your policy limits, normal wear and tear, mechanical problems, intentional damage, or excluded drivers and vehicles. UMBI focuses on injuries, while vehicle damage may require UMPD or collision coverage depending on your state and policy.
What happens if my car is hit by an uninsured driver?
If an uninsured driver hits your car, report the accident to police and your insurer. Your uninsured motorist coverage may help with injuries, and UMPD or collision coverage may help with vehicle repairs depending on your policy.
Do I need to have uninsured motorist coverage?
You may be required to carry uninsured motorist coverage in your state. Even when optional, it is worth considering because it protects you if an at-fault driver has no insurance or leaves the scene after a crash.
Is it good to reject uninsured motorist coverage?
Rejecting uninsured motorist coverage can lower your premium, but it may leave you responsible for medical bills, lost wages, and other losses after a crash with an uninsured driver. Reject it only if you understand the risk and have other resources to cover losses.
Is it better to have collision insurance or uninsured motorist coverage?
Collision and uninsured motorist coverage protect different things. Collision helps repair your vehicle after a crash. Uninsured motorist bodily injury coverage helps pay for injuries caused by an uninsured or hit-and-run driver. Many drivers benefit from having both.
Is uninsured driver’s cover worth having?
Uninsured driver’s cover is often worth having because one serious crash with an uninsured driver can create large medical bills, lost wages, and repair costs. The coverage is especially valuable in states with many uninsured drivers.
What is the best amount of uninsured motorist coverage?
A common approach is to match uninsured and underinsured motorist bodily injury limits to your liability limits. Higher limits may be smart if you have income to protect, passengers, high medical deductibles, or limited savings.
Does uninsured motorist coverage apply to hit-and-run accidents?
In many states, uninsured motorist coverage can apply to hit-and-run accidents, but policy rules vary. You may need a police report, prompt notice to your insurer, evidence of the crash, or proof of physical contact depending on your state and policy.
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