Buying Uninsured Motorist (UM) Coverage: What You Need To Know in 2024

What is uninsured motorist insurance? Uninsured motorist (UM) coverage pays for injuries and vehicle repairs after a collision with an uninsured or underinsured driver. It can also protect you from paying out of pocket for a hit-and-run accident, but limitations can apply.

If you’re involved in an accident with an uninsured/underinsured driver and don’t have UM insurance, you will have to file a claim with your own collision policy or pay out of pocket for medical and repair bills. Filing an insurance claim will raise your rates, and auto insurance quotes can go up 30% after an accident. So if you don’t carry UM, you may need to start looking for cheaper quotes from cheap auto insurance ompanies that don’t penalize you if an accident isn’t your fault.

Do you need to buy uninsured motorist coverage? You might already pay for UM insurance if you live in any of the states discussed below. This guide covers uninsured motorist requirements by state and compares UM policies to other types of auto insurance, so you don’t end up paying for coverage you don’t need.

Keep reading to learn how UM coverage works in your state, including how to stack coverage and file an uninsured motorist claim.

What is uninsured motorist coverage?

Uninsured motorist coverage pays for accidents caused by drivers who don’t have auto insurance. What is an uninsured motorist? Insurance companies consider an uninsured motorist someone who drives without carrying a minimum liability auto insurance policy. For those minimum requirements, see minimum auto insurance required by state.

According to the Insurance Information Institute, 12.9% of American drivers are uninsured. Mississippi has the highest rate of uninsured drivers (29.4%), while New Jersey has the lowest (3.1%). 

The bad news here is that there are uninsured drivers in every state. If an uninsured motorist hits you, you would have to file a claim with your own insurance company or pay out of pocket for repairs and injuries. 

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What does uninsured motorist insurance cover?

UM insurance covers injuries and property damage caused by an uninsured driver. Coverage amounts are limited per person and accident, but UM insurance can help cover vehicle repairs and medical bills for you and your passengers. 

When you buy uninsured motorist coverage, you have two policy options:

• Bodily injury (UMBI). It covers medical bills, lost wages, and funeral costs after an accident with an uninsured driver. Coverage may also apply if you are injured or killed as a pedestrian or cyclist.
• Property damage (UMPD). This policy covers repairs to your vehicle and other property after a collision with an uninsured driver.

Most UMPD policies come with an average deductible of $250, which you must pay before coverage kicks in. However, UMBI doesn’t have a deductible.

Does UM cover hit-and-run accidents? The short answer is yes, but the truth about uninsured motorist coverage and hit-and-run accidents is not so simple. State laws and insurance companies dictate how and when UM pays for hit-and-run accidents.

For example, you may not be able to file a claim until proving your collision meets the contact rule. The rule states that the hit-and-run driver must physically hit your car with their vehicle to warrant a claim. If the other driver runs you off the road without actually colliding with your vehicle, you cannot file a UM claim for damages. You would use your collision atuo insurance instead.

Other rules and limitations for hit-and-run claims can also apply. For example, your insurer may require that you try and track down the other driver before filing a claim with your UM policy. You may also have to provide a police report when filing to verify the collision was a hit-and-run. 

How much uninsured motorist coverage should I have?

If UM insurance is required where you live, you must carry a UMBI policy. If UMPD policies are available in your state, you can often choose to buy both or just UMBI, although some states require both. Read about how much auto insurance coverage do you need. 

Breaking Down Uninsured Motorist Coverage

Depending on where you live, you do not need to buy uninsured motorist insurance. Your state insurance laws will mandate the minimum level of coverage you have to carry if you do need it, although you can choose to carry more.

Some states also offer underinsured motorist coverage (UIM). Drivers can add this policy to supplement existing UM coverage, but some insurance companies may offer UM/UIM as a combined policy.

You can also opt-out of UM/UIM coverage if coverage is optional in your state and you carry adequate collision insurance. Keep reading to discover why you don’t need uninsured motorist coverage in your state and if it applies to you.

State Laws Concerning Uninsured Motorist Coverage

State laws and local insurance companies dictate whether you can “stack” your UM coverage limits. 

If you carry $30,000/$60,000 in UMBI and $25,000 in UMPD, you could stack these coverage limits if you own and insure two vehicles on the same policy. You would have up to $60,000 in UMBI per person, $120,000 per accident, and up to $50,000 in UMPD for either vehicle.

Find the UM minimums for your state and whether stacking is allowed in the table below:

State Requirements for Uninsured Motorist Coverage

Uninsured motorist insurance is required in 18 states and Washington, D.C. Auto insurance is not required in New Hampshire or Virginia. However, if you choose to buy a policy, you must carry the state minimum UM insurance listed above.

Uninsured Motorist vs. Underinsured Motorist Insurance

The main difference between uninsured and underinsured motorist insurance is that you can use your UIM policy even if the at-fault driver carries some level of auto insurance. 

UIM kicks in when your medical bills or property damage costs exceed the liability limits of the at-fault driver’s policy. Use this table for a closer look at the subtle differences between uninsured/underinsured motorist coverage:

Uninsured Motorist vs. Underinsured Motorist Insurance Coverage

Uninsured Motorist Bodily Injury (UMBI)	Uninsured Motorist Property Damage (UMPD)	Underinsured Motorist Bodily Injury (UIM)	Underinsured Motorist Property Damage (UIMPD)
Pays when an uninsured driver causes an accident	Pays to repair your vehicle if it's hit by an uninsured driver	Covers medical bills that go over the limits of the at-fault driver's liability policy	Covers repair costs that exceed the limits of the at-fault driver's liability policy

Depending on your state insurance laws, you can use UIM coverage if involved in a hit-and-run accident, when hit by an uninsured driver, or to pay for expensive medical bills and repair costs. 

Be aware that some state laws and insurance companies offer UM/UIM coverage together. If you’re interested in one or both policies, compare multiple auto insurance quotes online and confirm with your insurance company representative that you carry the right amount of coverage.

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Uninsured Motorist Coverage vs. Collision Insurance

If you don’t have UM coverage, you can file a claim with your collision insurance to cover the cost of repairs. Collision insurance has a deductible like UMPD, and coverage limits can vary by state. 

Use this table to compare UM and collision insurance coverages:

Uninsured Motorist Coverage vs. Collision Insurance

Insurance Coverage	Uninsured Motorist Property Damage (UMPD) Coverage	Collision Insurance
Vehicle repairs when policyholder is at fault	No	Yes
Vehicle repairs when struck by an uninsured driver	Yes	Yes
Property damage caused by an at-fault driver	Yes	No

Some states do not allow drivers to use UMPD for hit-and-run accidents. In this case, you would use UMBI to cover your medical bills, but your collision insurance would pay for repairs. You’ll be responsible for the bill if you don’t have a collision policy.

Unfortunately, the biggest difference between UM and collision insurance is that collision policies do not pay for medical bills. Without UMBI, you could use personal injury protection (PIP) or Medical Payments (MedPay) coverage if you have it or file with your health insurance company. For more information on this type of coverage, see what is personal injury protection (PIP) auto insurance? 

Should I buy UM coverage for property damage?

State insurance laws will determine if you need to buy UM coverage for property damage. It may already be included in your policy if it’s required in your state and you already had to buy full coverage auto insurance. You may not need UMPD if you have sufficient collision coverage. 

However, keep in mind that policies aren’t available in every state. Research local insurance laws and consult your insurance company before buying or rejecting this coverage.

How to Make an Uninsured Motorist Claim

The first step to filing uninsured motorist claims is to contact your insurance company as soon as possible. You can file a UM insurance claim online or over the phone. Depending on your insurance company, you might be able to file via an auto insurance mobile app. For a review of common insurance apps, see the best auto insurance apps reviewed.

Remember to include photographs of any damage and copies of repair receipts and medical bills. You will also want a police report to corroborate your claim that the at-fault driver is uninsured. 

A claims adjustor will then follow up with you over the phone to begin the process. You may be limited to certain repair shops or hospitals, so read your policy carefully or confirm with your insurance company representative that you are well within your policy limits when filing an uninsured motorist claim.

Examples of Uninsured Motorist Claims

Filing UM insurance claims can get complicated if you’re unsure which policy applies. For example, when should you use UM vs. UIM coverage? When does collision coverage apply over UMPD? 

Take a look at uninsured motorist claims examples below to find the answers:

• Pedestrian injured in a crosswalk. If you’re struck by an uninsured driver while using a crosswalk, you will file a UMBI claim.

• Driver rear-ended at a stop sign. You will file a claim with UMPD/UIMPD to cover vehicle repairs that exceed the limits of the at-fault driver’s policy.
• Hit-and-run accident. UMBI, PIP, and MedPay will cover injury claims, and UMPD will cover most property claims.

When filing UMPD claims, you must meet the auto insurance deductible before your insurance coverage kicks in. The average deductible for uninsured motorist insurance is $250. If you don’t have UMPD, or state laws prevent you from using UMPD for hit-and-runs, you will file a collision insurance claim.

Understanding the Payout From an Uninsured Motorist Claim

The payout from a UM insurance claim may not be as straightforward as it seems. For example, your insurer will subtract any money you receive from the other driver’s insurance company. This typically applies to drivers who carry UM/UIM insurance policies, but most claims are reduced by the amount, if any, covered by the at-fault driver.

So if you received $25,000 from the at-fault driver’s liability policy and your UM limits are $60,000, your insurance company would only pay up to$35,000 on your excess claim.

Where you live determines how you receive a payout, as some states allow drivers to buy coverage that combines UM/UIM payouts with an at-fault driver’s liability insurance. Other states give drivers a choice, but you can opt for reduced UM limits by submitting a rejection in writing. 

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The Bottom Line: Is uninsured motorist coverage necessary?

With nearly 13% of American drivers uninsured, uninsured motorist coverage can save you money after a car accident. UM coverage pays for injuries and damages caused by uninsured or hit-and-run drivers. You may also have UIM coverage, which pays for damages that exceed an at-fault driver’s liability limits. 

Why would you reject uninsured motorist coverage? Uninsured motorist coverage is not required in every state, and you may not need to carry it if you have full coverage or at least a collision policy. However, if state law requires it, you must carry the minimum UM insurance to drive legally.

You will pay more for car insurance if you have many uninsured drivers in your state. Fortunately, uninsured motorist rates are as low as $4-$7/mo ($50-$75/yr) and can save you thousands of dollars in medical bills and property damage after an accident. 

Use our comparison tool below to find affordable uninsured motorist coverage near you. We compare quotes from multiple companies across all 50 states so you can find the cheapest coverage in your neighborhood.

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