Uninsured motorist coverage is a car insurance coverage that pays injury costs when uninsured or hit-and-run drivers cause crashes. Uninsured motorist coverage includes bodily injury (UMBI), underinsured motorist (UIM), and property damage (UMPD) coverage. Uninsured drivers create three main financial risks for policyholders: unpaid medical bills, lost wages, and car repair costs. According to NHTSA, 2,758 people died in hit-and-run crashes across the U.S. in 2024. Some states require drivers to carry uninsured motorist coverage at state minimum limits. Insurance Navy helps drivers find the right insurance at the right price. This guide explains uninsured motorist coverage costs, state requirements, stacking, hit-and-run rules, and the claim process.
Table of contents
- How Does Uninsured Motorist Coverage Work?
- What Does Uninsured Motorist Insurance Cover?
- Bodily Injury
- Property Damage
- Uninsured Motorist vs. Underinsured Motorist Coverage
- States that require uninsured and underinsured motorist coverage
- Do You Need Uninsured Motorist or Underinsured Motorist Insurance Coverage?
- UM Property Damage vs. Collision Coverage
- UM vs. Health Insurance, PIP and MedPay
- Uninsured Drivers in Your State
- What is Stacking Car Insurance?
- Uninsured Motorist Coverage And Hit-And-Runs
- How to File an Uninsured Motorist Claim
- How Much Does Uninsured Motorist Coverage Cost?
- Are Uninsured Motorist and Underinsured Motorist Insurance Coverage Worth it?
Uninsured motorist (UM) coverage is the part of your car insurance that pays for your injuries, and in some states your car repairs, when an at-fault driver has no insurance or leaves the scene of a hit-and-run. Underinsured motorist (UIM) coverage pays when the at-fault driver's limits are too low.
About 1 in 3 drivers (33.4%) were uninsured or underinsured in 2023, according to the Insurance Research Council (IRC). In 2023, 15.4% of drivers had no insurance and 18.0% of drivers had too little insurance.
This uninsured motorist coverage applies to you as the car insurance policyholder and any passengers you may have in the car.
Some states require uninsured motorist coverage, the same way states require liability insurance.
Uninsured motorist coverage can provide protection when:
A driver who had no liability car insurance
A driver who lacks a sufficient amount of liability insurance, also known as an underinsured motorist
A driver whose insurance company refuses coverage or goes out of business
You should also be aware of how most auto insurance companies express uninsured motorist insurance and underinsured motorist coverage on car policies.
If you see 100/300 on a policy, the policy pays up to $100,000 of bodily injury coverage per person and $300,000 per accident. If you and 1 passenger are both hurt, the policy pays up to $100,000 for each of you, or $200,000 in total. The $300,000 per-accident limit caps the total payout when 3 or more people are hurt.
How Does Uninsured Motorist Coverage Work?
Uninsured motorist coverage replaces the liability insurance that the at-fault driver does not have. You file the UM claim with your own insurer. Your insurer pays what the at-fault driver would have owed you, up to your UM limits.
After an accident, you usually contact the other driver's car insurance company for their liability insurance policy to cover damages to your motor vehicle and injury expenses for your passengers, if any, and yourself.
Suppose the other driver's vehicle insurance company approves your auto insurance claim. In that case, you will go about repairing your car or paying medical expenses with the payout you receive.
When the other driver is uninsured, no insurance company pays those costs for the other driver. Without UM coverage, you pay those bills yourself.
The same goes when the other driver is underinsured, and their motor vehicle insurance company will not pay for all the damage caused by the car accident.
What Does Uninsured Motorist Insurance Cover?
Uninsured motorist insurance covers the various consequences following an accident. These generally would be picked up by the other driver's liability car insurance, but if they lack car insurance, you will typically be on the hook for the costs.
This can get pricey if you have extravagant medical expenses or a car on the brink of being totaled.
For these reasons, knowing how an uninsured motorist policy will help you following an accident is best. There may also be some auto insurance coverage limitations that you should note.
Explored below is what an uninsured motorist policy will cover after an accident.
Bodily Injury
Uninsured motorist bodily injury coverage (UMBI) is the part of UM coverage that pays for your medical bills and your pain and suffering after a crash.
Suppose your injuries are severe enough that you are forced to miss work. In that case, UMBI can also help pay for lost wages. In a worst-case scenario, UMBI coverage includes funeral expenses.
Property Damage
If your car was damaged significantly following an accident with an uninsured motorist, this part of the uninsured motorist policy helps you with repairing it.
Also referred to as uninsured motorist property damage coverage (UMPD), this type of uninsured motorist policy may include protection for your items if you are in an accident as a pedestrian or biker, depending on the circumstances.
State law sets UMPD limits and deductibles, so UMPD limits and deductibles vary by state. Illinois insurers must offer UMPD with a deductible of no more than $250. Texas UM/UIM coverage carries a $250 deductible. Georgia lets you choose a UMPD deductible of $250, $500, or $1,000. California caps UMPD at $3,500.
Uninsured Motorist vs. Underinsured Motorist Coverage
Uninsured motorist and underinsured motorist coverage do the same thing: provide car insurance when you end up in an accident with a driver lacking the proper liability auto insurance.
The only key difference is which driver triggers each coverage. Uninsured motorist (UM) coverage pays when the at-fault driver has no insurance. Underinsured motorist (UIM) coverage pays when the at-fault driver has too little insurance.
Even though nearly every state requires some car insurance to drive your motor vehicle, you will find many drivers who want to save money by either not having car insurance and driving their car completely uninsured or buying the least amount possible of auto insurance.
States that require uninsured and underinsured motorist coverage
Your state decides whether you must buy uninsured motorist coverage. The Insurance Information Institute (III) lists 18 states plus Washington, D.C., that require UM coverage. According to the III, "Only a handful of states require drivers to purchase underinsured motorist coverage."
New Hampshire is a special case. New Hampshire does not require drivers to buy car insurance, but every auto policy issued in New Hampshire must include uninsured motorist coverage, including protection against hit-and-run drivers. Vermont requires both liability insurance and UM/UIM coverage.
For states that require uninsured motorist insurance, you will need to buy whatever state-mandated minimum limit they require. Typically, the minimum state-mandated amount mirrors how much liability insurance coverage you purchase.
For example, suppose you have a liability coverage limit of $100,000 for bodily injury per person. In that case, your uninsured motorist limits for injury per person will be the same amount.
Suppose your state does not mandate uninsured motorist coverage. In that case, car insurers may still be required to offer you underinsured or uninsured motorist options when you purchase a car insurance policy.
If you reject the underinsured motorist or uninsured motorist coverages, you would have to state so in writing.
How UM rules work in 6 example states
State | Is UM required? | Key rule |
|---|---|---|
Illinois | Yes (bodily injury) | UM bodily injury minimums are $25,000 per person and $50,000 per accident. Insurers must offer UM property damage. |
Texas | No, but insurers must offer it | You must reject UM coverage in writing. You can buy UM coverage in $5,000 increments. |
Georgia | No, but every policy includes it unless you reject it in writing | "Add-on" UM, which pays on top of the at-fault driver's insurance, is the default. |
California | No, but insurers must offer it | You sign a waiver to decline UM coverage. |
Nevada | No, but insurers must offer it | Insurers offer UM coverage at your bodily injury liability limits. Nevada law limits stacking. |
Indiana | No, but insurers must offer it | You must reject UM coverage in writing. Indiana's "no pay, no play" law bars uninsured drivers from collecting pain-and-suffering damages. |
About a dozen states have "no pay, no play" laws that limit what uninsured drivers can collect after a crash.
Always double-check the requirements for underinsured motorist insurance and uninsured motorist coverages in your state.
Do You Need Uninsured Motorist or Underinsured Motorist Insurance Coverage?
You need uninsured motorist coverage if your state requires it. In other states, UM coverage is optional. Before you reject UM coverage, compare UM coverage with the coverage you already have:
UM Property Damage vs. Collision Coverage
Collision coverage pays to repair your car after a crash, whoever caused the crash, minus your collision deductible. UMPD pays only when an uninsured driver caused the crash. UMPD has a separate deductible. If you already carry collision coverage, compare the 2 deductibles before you add or drop UMPD. In California, a collision deductible waiver pays your collision deductible when an identified uninsured driver is at fault.
UM vs. Health Insurance, PIP and MedPay
Personal injury protection (PIP) and medical payments (MedPay) coverage pay for treating injuries to you and your passengers, no matter who caused the crash. Uninsured motorist bodily injury coverage pays only when the other driver is at fault and has no insurance or not enough insurance.
Suppose you have a decent healthcare insurance plan. In that case, you can file an insurance claim to help cover expenses after a motor vehicle accident. However, it would help to analyze your health insurance policy before doing so.
If you have a high deductible for health insurance, consider deciding against this. Some car accidents can cost a lot, especially if you cannot work.
MedPay and health insurance do not pay for lost wages or pain and suffering. UMBI pays for both. A UMBI claim also carries no health insurance copays.
Uninsured Drivers in Your State
Mississippi had the highest uninsured driver rate in 2023 at 28.2%, according to the IRC. Maine had the lowest rate at 5.7%. The uninsured rate was above the national rate in 15 states and Washington, D.C.
Uninsured drivers by state (2023)
State | Uninsured drivers (2023) |
|---|---|
California | 20.4% |
Georgia | 19.0% |
Illinois | 15.2% |
Texas | 14.5% |
Indiana | 14.0% |
Nevada | 11.1% |
Living in a state with alarming numbers like Mississippi may convince you to obtain uninsured motorist coverage or underinsured motorist insurance.
What is Stacking Car Insurance?
Stacking is a way to combine the uninsured motorist limits of more than 1 vehicle or policy so you can collect more after a crash. Your state and your policy decide whether you can stack. Some states cap stacking by law. In Nevada, recovery "may equal but not exceed the higher of the applicable limits" of the coverages.
Two ways to "stack" insurance:
Stack coverage for vehicles under one car insurance policy
Stack coverage for vehicles under separate auto insurance policies, but both in your name
For example, if you have two cars under one car insurance policy and each has $75,000 for uninsured motorist bodily injury coverage, you could stack the uninsured motorist coverage for a car insurance policy limit of $150,000.
This means that if you got into an accident in a car under this car insurance policy, you would be covered for bodily injury up to $150,000 instead of the original coverage of $75,000.
You can also stack 2 separate policies in your name. For example, 2 policies with $50,000 of UM bodily injury coverage each give you up to $100,000.
Consider doing this if medical costs greatly exceed your initial uninsured motorist plan. Sometimes, car insurance can take you only so far, as outlined by car insurance policy limits.
In such cases, it is best to have a backup plan, like stacking auto insurance coverage. You could even make these adjustments when encountering an underinsured motorist who cannot cover your expenses.
Remember that when you stack car insurance, you may be subjected to extra fees. Stacking auto insurance must also be done when you buy a new or renew your current car insurance policy.
You cannot stack uninsured motorist coverage after an accident. Check your policy's stacking rules before an accident happens. Some insurers add an anti-stacking clause to the policy.
Uninsured Motorist Coverage And Hit-And-Runs
Uninsured motorist coverage usually pays for your injuries after a hit-and-run. The National Association of Insurance Commissioners (NAIC) describes UM as coverage that "reimburses you if an uninsured or a hit-and-run driver hits you."
A hit-and-run is an accident where a driver damages something with their car and then flees the scene without exchanging contact or car insurance information with anyone.
Coverage for damage to your car after a hit-and-run depends on your state. Some states pay UMPD only when the other driver is identified. In California, for example, UMPD "only pays if the uninsured driver is identified." In California, hit-and-run damage to your car usually goes through your collision coverage instead.
Report a hit-and-run to the police right away. In Texas, uninsured motorist coverage does not pay for a hit-and-run accident that you did not report to the police. Check your policy's hit-and-run terms, because some states and insurers add other conditions.
How to File an Uninsured Motorist Claim
You file an uninsured motorist claim with your own insurer in 5 steps.
Call the police. Get a police report, especially after a hit-and-run.
Collect the other driver's details. Write down the other driver's name, license plate, and insurance information, if the other driver has any. Take photos and get witness names.
Tell your insurer quickly. Tell your insurer whether the other driver was uninsured, underinsured, or unknown. Your policy sets the notice deadline.
Show that the other driver was at fault. UM and UIM coverage pay only when the other driver caused the crash.
Collect from the at-fault driver's insurer first if the other driver is underinsured. The at-fault driver's insurer pays up to its limits. Your UIM coverage then pays more, up to your own limits. Some states subtract the other driver's payout from your UIM limit. Other states add UIM on top of that payout.
How Much Does Uninsured Motorist Coverage Cost?
Uninsured motorist coverage costs about $9 a month on average to add to a policy, according to MoneyGeek's 2026 rate analysis. UMBI coverage costs about $33 to $76 a year at 25/50 limits and $86 to $134 a year at 100/300 limits. For most drivers, UM coverage costs less than $100 a year.
Your UM price depends on 3 factors: your state, the UM limits you choose, and your insurer. Higher UM limits cost more.
MoneyGeek figures use a 40-year-old driver with a clean record and good credit, a 2012 Toyota Camry LE and state minimum liability limits, based on Quadrant Information Services rate data (updated August 15, 2026).
Are Uninsured Motorist and Underinsured Motorist Insurance Coverage Worth it?
Yes, uninsured motorist coverage is worth it for most drivers. UMBI pays for the injuries, lost wages, and pain and suffering that an uninsured or underinsured driver leaves unpaid.
The best way to determine if you need uninsured motorist coverage or underinsured motorist insurance is by analyzing the stats of uninsured and underinsured drivers in your area.
It would help if you also looked at your current car insurance policy.
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