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Key takeaways:

• Uninsured motorist (UM) coverage pays for injuries to you and your passengers from accidents caused by uninsured drivers.

• In some cases, uninsured motorist coverage can also pay for property damage, such as vehicle repairs.

• Even if your state doesn’t require UM coverage, you may decide it’s a good idea to have it.

Liability auto insurance is required in almost every state, but approximately 15% of drivers — or about 1 in 7 — didn’t have car insurance in 2023, according to the most recent data from the Insurance Research Council (IRC). If you’re in an accident caused by an uninsured driver, it could leave you on the hook for thousands in repair bills for your vehicle and medical bills for yourself or your passengers.

An auto insurance policy that includes uninsured motorist coverage can help you avoid serious out-of-pocket costs if a driver without insurance or inadequate coverage crashes into you.

Learn more: How does car insurance work? The basics explained.

What is uninsured motorist coverage?

Uninsured motorist coverage, or UM coverage, is car insurance that pays for medical bills if you are the victim of an accident caused by a driver without car insurance or someone without enough insurance. In some cases, UM insurance can also pay for your car repair bills.

Two types of uninsured motorist coverage

There are two types of uninsured motorist coverage: uninsured motorist bodily injury (UMBI) coverage and uninsured motorist property damage (UMPD) coverage. Both types pay you (or your passengers for injuries), not the uninsured driver.

1. Uninsured motorist bodily injury coverage. Uninsured motorist bodily injury coverage is the most common type of uninsured motorist insurance and covers your medical expenses, lost wages, pain and suffering, and potentially funeral expenses if you’re in an auto accident caused by an uninsured motorist.

2. Uninsured motorist property damage coverage. Uninsured motorist property damage coverage pays for damage to vehicles and property after an accident caused by a driver who does not have insurance.

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What does uninsured motorist insurance cover?

Uninsured motorist property damage coverage pays for damage to your vehicle or other property (such as a fence or house) from an accident caused by an uninsured driver. It may also be used for other related expenses, such as paying for a rental car while your vehicle is being repaired.

Learn more: What is rental car reimbursement and what does it cover?

Is there a deductible for uninsured motorist coverage?

State laws dictate whether or not you’ll have a car insurance deductible if you make an uninsured motorist claim. Generally, you won’t have to pay a deductible for a UMBI claim, but some states may allow a deductible for UMPD claims.

Does uninsured motorist coverage pay for hit-and-run accidents?

Uninsured motorist coverage can typically be used for medical bills by victims of a hit-and-run accident where the driver at fault remains unidentified. This type of coverage can even be used if you’re a pedestrian who is hit by a vehicle driven by an uninsured motorist.

Read more: Here’s what to do if you’re involved in a hit-and-run crash

Do you need uninsured motorist coverage?

You won’t have a choice about paying for uninsured motorist coverage if your state requires it. Even if it’s not required, you may decide that UM coverage is a smart purchase, depending on your circumstances.

States that require UM coverage

Uninsured motorist coverage is required in these states:

• Connecticut

• Illinois

• Kansas

• Maine

• Maryland

• Massachusetts

• Minnesota

• Missouri

• Nebraska

• New Jersey

• New York

• North Carolina

• North Dakota

• Oregon

• South Carolina

• South Dakota

• Vermont

• Virginia

• Washington, D.C.

• West Virginia

• Wisconsin

Look at other coverage you already have

Consider your risk tolerance and what other types of car insurance you have that could cover bills from an accident caused by an uninsured driver, such as:

• Collision insurance for damage to your vehicle. However, you’ll have to pay your collision deductible toward repairs if you make a claim.

• Health insurance for accident injuries could also mean paying a deductible, co-payments, and coinsurance.

Consider your state’s population of uninsured drivers

The prevalence of uninsured drivers in your state could influence your purchase decision.

According to the IRC, these are the states with the highest percentages of uninsured drivers:

• Mississippi: 29.4%

• Michigan: 25.5%

• Tennessee: 23.7%

• New Mexico: 21.8%

• Washington: 21.7%

• Florida: 20.4%

• Alabama: 19.5%

• Arkansas: 19.3%

• Washington, D.C.: 19.1%

• California: 16.6%

According to the IRC, these are the states with the lowest percentages of insured drivers:

• New Jersey: 3.1%

• Massachusetts: 3.5%

• New York: 4.1%

• Maine: 4.9%

• Wyoming: 5.8%

• Pennsylvania: 6.0%

• New Hampshire: 6.1%

• Connecticut: 6.3%

• Utah: 6.5%

• North Carolina and South Dakota (tied): 7.4%

How much uninsured motorist coverage do I need?

In most cases, the amount of UM coverage you buy will mirror your auto liability insurance limits. For example, if your liability limits are set at 100/300 (meaning $100,000 for bodily injury per person and $300,000 per accident), you’ll likely need to buy 100/300 in UM coverage.

If your state requires uninsured motorist property damage coverage, it’s typically in the neighborhood of $10,000 to $25,000 per accident.

Read more: Minimum car insurance requirements in all 50 U.S. states

What does it mean to stack uninsured motorist coverage?

Some states will allow what’s known as “stacking” when you have UM coverage and multiple vehicles on your auto insurance policy. Stacking lets you multiply your coverage limits by the number of cars on your policy.

For instance, if your UM limits are 25/50 and you have three cars on your policy, you may be able to stack that coverage to get up to $75,000 per person and $150,000 per accident in UM coverage.

What is underinsured motorist coverage?

Similar to uninsured motorist coverage, underinsured motorist (UIM) insurance may be available to cover injuries or property damage caused by an uninsured driver.

A driver is considered underinsured if they cause an accident resulting in more injuries or damage than what is covered by their insurance policy.

Depending on your state, UM coverage and UIM coverage may be bundled together. Like UM coverage, UIM insurance is divided into two possible components:

1. Underinsured motorists bodily injury coverage. Underinsured motorist bodily injury (UIMBI) coverage pays for your medical bills, lost wages, pain and suffering, and/or funeral expenses following an accident caused by a driver who is underinsured.
   
   Consider a scenario in which a driver causes a multi-vehicle crash, seriously injuring five people. If the at-fault driver’s liability insurance pays a maximum of $50,000 per accident, that probably wouldn’t be enough to cover all the doctor bills.
   
   Having underinsured motorist bodily injury coverage can help cover your expenses after an at-fault driver’s insurance coverage is exhausted.

2. Underinsured motorist property damage coverage. Underinsured motorist property damage (UIMPD) coverage pays for damage to vehicles and property after an accident caused by a driver who has insurance but not enough to pay for all the damage they caused.
   
   If someone totals your expensive sports car, for example, their insurance coverage limits may not be enough to replace your vehicle. With underinsured motorist property damage coverage, your insurance can make up the difference.

Alternatives to uninsured motorist coverage

If your state doesn’t require UM coverage and you choose not to buy it, there may be other coverage that can pay out for bills related to an uninsured driver, including:

• Collision insurance. Collision insurance can pay your car repair bills if an uninsured motorist hits your vehicle.

• Health insurance. If you have health insurance, your medical bills following an accident are likely covered, but you may have a co-payment, coinsurance, or a high deductible to pay.

• Personal Injury protection (PIP). Even if your auto insurance policy includes personal injury protection (PIP), it may not be enough to cover all the expenses related to your car accident injury.

• Disability coverage. Having short- or long-term disability coverage can be useful for lost wages related to an accident, but it typically only pays a portion of your wages.

Expert tip: If you choose not to buy certain car insurance types, such as uninsured motorist coverage, it can be helpful to regularly set aside money in a high-yield savings account to cover potential expenses.

Learn more: What is an emergency savings fund?

Uninsured motorist insurance FAQs

Can I sue an uninsured driver if I don’t have UM coverage?

You could sue an uninsured driver for your accident bills — and they are likely legally liable. But the question is whether you could collect anything from them. If a driver has low levels of auto insurance, they may not have the assets for you to go after in a lawsuit.

Is it better to have uninsured motorist or collision coverage?

Collision insurance is better overall for vehicle damage because it applies in more situations. If you have uninsured motorist insurance for property damage, it’s only useful if an uninsured driver hits your car. Collision insurance can be used for any crash damage to your vehicle, whether you hit a fence or an uninsured driver hits you. However, collision insurance has a deductible and it does not cover injuries.

What's the difference between uninsured motorist coverage and full coverage?

Uninsured motorist coverage pays you only when a driver who causes an accident is uninsured or underinsured. Full coverage insurance pays for accidents that you cause, plus it includes collision and comprehensive coverage for damage to your own vehicle from many causes.

Will my insurance go up if I get hit by an uninsured driver?

Your car insurance rates are unlikely to go up because of an uninsured motorist claim because the accident was not your fault.

Tim Manni and Amy Danise edited this article.

Kaz Weida contributed to this article.