Uninsured Motorist Coverage Explained

Nearly 13% of drivers on American roads are uninsured, and another significant percentage carry only minimum insurance that may not fully cover your damages. Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage protects you when an at-fault driver can't pay for the damage they cause.

What is Uninsured Motorist Coverage?

Uninsured Motorist coverage pays for your injuries, lost wages, and vehicle damage when you're in an accident caused by a driver without insurance. It comes in two types:

• Uninsured Motorist Bodily Injury (UMBI): Covers medical expenses, lost income, and pain and suffering
• Uninsured Motorist Property Damage (UMPD): Pays for vehicle and property repairs

What is Underinsured Motorist Coverage?

Underinsured Motorist (UIM) coverage kicks in when the at-fault driver has insurance, but their liability limits aren't enough to cover your full damages. For example, if you have $50,000 in medical bills but the at-fault driver only has $25,000 in coverage, UIM would pay the $25,000 difference.

Why You Need This Coverage

Uninsured motorist coverage is essential because:

• High Rate of Uninsured Drivers: In some states, up to 20-30% of drivers lack insurance
• Hit-and-Run Protection: Covers you if the at-fault driver flees the scene
• Minimum Limits Are Too Low: Many drivers carry only state minimums that won't cover serious accidents
• Your Health Insurance May Not Be Enough: Medical bills from car accidents can exceed health insurance limits
• Lost Wages Coverage: Compensates for time you can't work due to injuries

What UM/UIM Coverage Includes

Bodily Injury Coverage:

• Medical bills and hospital expenses
• Rehabilitation and physical therapy costs
• Lost wages and earning capacity
• Pain and suffering compensation
• Funeral expenses in fatal accidents
• Passenger injuries in your vehicle

Property Damage Coverage:

• Vehicle repair or replacement costs
• Damaged personal property in your vehicle
• Rental car expenses while your car is being repaired

Coverage Limits and How They Work

UM/UIM coverage limits are expressed the same way as liability coverage (e.g., 100/300). The first number is the per-person limit, and the second is the per-accident limit.

Important Limitation: Your UM/UIM coverage cannot exceed your liability coverage limits. If you have 50/100 liability, you can't carry more than 50/100 UM/UIM.

State Requirements

UM/UIM requirements vary significantly by state:

• Required in 20+ States: Including Illinois, Maryland, Kansas, and others
• Must Be Offered: Many states require insurers to offer it, but you can decline in writing
• Optional: Some states don't require it at all

Even if your state doesn't require UM/UIM, it's highly recommended. The cost is relatively low compared to the protection it provides.

How Claims Work

Filing an uninsured motorist claim:

1. Report the Accident: Call police immediately and file a report
2. Document Everything: Get witness information, photos, and medical records
3. Notify Your Insurer: File a claim with your own insurance company
4. Prove the Other Driver is Uninsured: Your insurer will verify the other driver's insurance status
5. Claim Settlement: Your insurance company pays based on your UM/UIM limits

Cost of UM/UIM Coverage

Uninsured motorist coverage is surprisingly affordable, typically adding only $50-150 per year to your premium. The exact cost depends on:

• Your coverage limits
• Your location (states with more uninsured drivers cost more)
• Your driving record
• Your vehicle type

UM/UIM vs. Collision Coverage

Many people wonder if they need both. The answer is yes, because they serve different purposes:

• Collision: Pays for your vehicle damage regardless of who's at fault (with deductible)
• UMPD: Pays for vehicle damage only when an uninsured/underinsured driver is at fault (often no deductible)
• UMBI: Covers your medical expenses (collision doesn't cover this at all)

Special Situations

Hit-and-Run Accidents

UM coverage typically applies to hit-and-run accidents where the at-fault driver can't be identified. Some states require you to report hit-and-runs within a specific timeframe (often 24 hours) to qualify for UM coverage.

Out-of-State Accidents

Your UM/UIM coverage generally follows you when driving in other states, but coverage may adjust to meet the minimum requirements of the state where the accident occurs.

Stacking vs. Non-Stacking

In some states, you can "stack" UM/UIM coverage if you insure multiple vehicles:

• Stacked: Combines limits from all your vehicles (more expensive, more protection)
• Non-Stacked: Uses only one vehicle's limits (cheaper, less protection)

Tips for Maximizing Protection

• Match Your Liability Limits: Carry the same UM/UIM limits as your liability coverage
• Consider Higher Limits: In areas with many uninsured drivers, extra protection is worth it
• Understand Your State's Laws: Know whether UM/UIM is required or optional
• Don't Decline Coverage: The small savings isn't worth the risk
• Review Regularly: Update your UM/UIM limits when you increase liability coverage
• Ask About Stacking: If available, stacking may provide better protection

Common Questions

Can I file a UM claim if I don't know who hit me?

Yes, hit-and-run accidents typically qualify for UM coverage, but you must file a police report promptly.

Does UM coverage have a deductible?

UMBI typically has no deductible. UMPD may have a deductible depending on your state and policy.

Will my rates increase after a UM claim?

Generally no, since you weren't at fault. However, policies vary, so check with your insurer.

Does UM cover passengers in my car?

Yes, UMBI covers passengers injured in your vehicle in an accident with an uninsured driver.

Conclusion

Uninsured and underinsured motorist coverage is one of the most important—and most overlooked—components of auto insurance. With millions of uninsured drivers on the road, protecting yourself is essential. The relatively low cost makes UM/UIM coverage one of the best values in auto insurance.

Don't assume the other driver has adequate insurance. Protect yourself, your family, and your finances by carrying robust UM/UIM coverage equal to your liability limits.