What Is Underinsured and Uninsured Motorist Coverage? UIM/UM FAQs

What is uninsured motorist coverage?

Uninsured Motorist (UM) Coverage is a type of insurance that protects you if you're in an accident caused by a driver who does not have any insurance.

Here’s how it works: If an uninsured driver hits you, normally their insurance would pay for your medical bills, lost wages, and other damages. But if they don’t have insurance, there’s no coverage from their side. That’s where your uninsured motorist coverage steps in—it pays for those costs so you’re not left covering them out of pocket.

This coverage typically includes:

• ‍Bodily injury (UMBI): Covers medical expenses, lost wages, and pain & suffering for you and your passengers.‍
• Property damage (UMPD) (if included in your policy): Pays for repairs to your car if an uninsured driver damages it.

It’s an important safety net because, unfortunately, not everyone follows the law and carries insurance. Having UM coverage ensures you’re still protected even if the other driver isn’t.

What is underinsured motorist coverage?

Underinsured Motorist (UIM) Coverage is similar to uninsured coverage but differs in important ways.

It’s design to help protect you when you’re in an accident caused by a driver who has insurance, but not enough to cover all of your damages.

Here’s how it works:

Every driver is required to carry a minimum amount of liability insurance, but sometimes, those limits aren’t high enough to pay for all of your medical bills, lost wages, and other expenses after a serious accident. If the at-fault driver’s insurance maxes out before covering everything, your UIM coverage kicks in to cover the remaining costs—so you don’t have to pay out of pocket.

This typically covers:

• ‍Bodily injury: Pays for medical expenses, lost wages, and pain & suffering when the other driver’s liability coverage isn’t enough.‍
• Property damage: Helps pay for repairs to your car if the at-fault driver’s coverage doesn’t fully cover it.

Think of it as a backup plan to fill the gap when another driver’s insurance isn’t sufficient.

It’s especially important because medical costs and car repairs can quickly add up beyond the limits of basic insurance policies.

What is the difference between uninsured and underinsured coverage?

While Uninsured Motorist (UM) Coverage and Underinsured Motorist (UIM) Coverage are similar, they protect you in slightly different situations.

The Key Difference:

• Uninsured Motorist Coverage applies when the at-fault driver has no insurance at all.
• Underinsured Motorist Coverage applies when the at-fault driver has insurance, but not enough to cover all your damages.

Breaking it down further:

    <table >
        <thead >
            <tr>
                <td >Coverage Type</td>
                <td >When It Helps</td>
                <td >Example Scenario</td>
            </tr>
        </thead>
        <tbody>
            <tr >
                <td >Uninsured Motorist (UM)</td>
                <td >When the other driver has no insurance</td>
                <td >You're hit by a driver whoo never purchased insurance, and your UM coverage pays for your injuries and damages.</td>
            </tr>
            <tr >
                <td >Underinsured Motorist (UIM)</td>
                <td >When the other driver has some insurance, but not enough</td>
                <td >A driver with minimum coverage causes a serious accident. Their policy covers $25,000, but your medical bills total $50,000. Your UIM kicks in to cover the extra $25,000</td>
            </tr>
        </tbody>
    </table>

‍ 

Both types of coverage are designed to protect you from financial loss when another driver doesn’t have adequate insurance.

Many states require UM coverage, while UIM is optional in some places, but both are highly recommended for peace of mind on the road.

How does uninsured and underinsured motorist coverage work?

Uninsured and Underinsured Motorist Coverage work by stepping in to cover your expenses when an at-fault driver doesn’t have enough (or any) insurance to pay for damages.

How it works step-by-step:

1. You’re in an accident
   ‍
   
   • The other driver is at fault.
   • You exchange insurance information, but they either have no insurance (UM) or not enough insurance (UIM) to cover your damages.
2. You file a claim
   • If the at-fault driver has no insurance, you file a claim under your Uninsured Motorist Coverage.
   • If they have some insurance, but not enough, you first file a claim against their insurance. Once their policy pays the maximum it can, you then file a claim under your Underinsured Motorist Coverage for the remaining costs.
3. Your insurance covers the costs

Your UM/UIM policy should cover:

• ‍Medical expenses: Hospital bills, doctor visits, rehabilitation.‍
• Lost wages: If the accident leaves you unable to work.‍
• Pain and suffering: Compensation for emotional distress and physical pain.‍
• Vehicle repairs (if UMPD is included): Some policies also cover car repairs under Uninsured Motorist Property Damage.

Here’s a couple of example scenarios:

• ‍Uninsured motorist claim: A hit-and-run driver crashes into you and disappears. Since you don’t know who they are, your UM coverage steps in.
• ‍Underinsured motorist claim: You get hit by a driver with only $25,000 in liability coverage, but your medical bills total $50,000. After their insurance pays out the $25,000, your UIM coverage pays the remaining $25,000.

Without coverage, you might have to pay out of pocket or rely on health insurance (which may not cover everything).

This coverage protects you financially when other drivers fail to carry proper insurance.

Do I need uninsured motorist coverage?

Whether you need uninsured motorist coverage depends on a few key factors, but in general, it’s highly recommended and sometimes even required by law.

‍Is it required in your state?

Some states require UM coverage as part of your auto insurance. If you live in one of these states, you must have it. If not, it’s optional but still a good idea.‍

How common are uninsured drivers in your area?

About 1 in 8 drivers in the U.S. is uninsured. In some states, that number is even higher. If you live in an area with a lot of uninsured drivers, having UM coverage is extra important.

Can you afford to pay out of pocket?

• If you’re hit by an uninsured driver and don’t have UM coverage, you may have to pay for medical bills and lost wages on your own—or rely on health insurance, which may not cover everything.
• UM coverage is usually affordable and can save you from major financial strain after an accident.

Do you have health insurance?

• If you have excellent health insurance, you might think you don’t need UM coverage.
• However, health insurance won’t cover lost wages or pain and suffering—but UM coverage will.
• Plus, you may have to pay deductibles or copays with health insurance, while UM coverage often has better terms.

Bottom line: Should you get it?

• If UM coverage is required in your state, you must get it.
• If uninsured drivers are common where you live, you should strongly consider it.
• If you can’t afford to cover medical expenses or lost wages out of pocket, you definitely need it.
• If you want extra protection beyond health insurance, it’s a smart choice.

Which states require uninsured and/or underinsured motorist coverage?

Uninsured Motorist and Underinsured Motorist coverage requirements vary across the United States.

As of now, 20 states and the District of Columbia mandate UM and/or UIM coverage.

Some of these states include:

• Connecticut
• District of Columbia
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Hampshire
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• Vermont
• Virginia
• West Virginia
• Wisconsin

In these jurisdictions, drivers are legally required to carry UM and/or UIM coverage as part of their auto insurance policies.

However, even in states where it's not mandatory, obtaining UM and UIM coverage is often recommended to protect yourself against potential accidents with uninsured or underinsured drivers.

Insurance laws can change all the time. It's always a good idea to consult with your insurance provider or state insurance department for the most current information.

What are the different types of uninsured and underinsured motorist coverage types?

Uninsured (UM) and Underinsured Motorist (UIM) coverage typically come in two main types, each serving a different purpose:

Uninsured/Underinsured Motorist Bodily Injury (UMBI/UIMBI)

Covers medical expenses, lost wages, and pain and suffering for you and your passengers if an uninsured or underinsured driver causes an accident.

How it works:

• If the at-fault driver has no insurance (UM), your UMBI coverage pays for your injuries.
• If the at-fault driver doesn’t have enough insurance (UIM), their policy pays up to its limit first, and then your UIMBI coverage kicks in to cover the rest.

What it covers:

• Medical bills (hospital visits, surgeries, rehab, etc.)
• Lost wages if you can’t work
• Pain and suffering damages
• Funeral expenses (if applicable)

What it doesn’t cover:

• Vehicle damage (that’s covered under a different type of UM/UIM coverage)

Uninsured/Underinsured Motorist Property Damage (UMPD/UIMPD)

Covers damage to your car if it’s hit by an uninsured or underinsured driver.

How it works:

If an uninsured driver damages your car, UMPD pays for repairs (up to your policy limit).

If an underinsured driver damages your car, their policy pays first, and your UIMPD coverage makes up the difference.

What it covers:

• Vehicle repairs
• Possible rental car costs while your car is being fixed

What it doesn’t cover:

• Medical expenses (that’s covered under UMBI/UIMBI)
• Damage from hit-and-run accidents (some states exclude hit-and-runs from UMPD coverage)

Do you need both types?

Many people only carry UMBI/UIMBI since medical expenses can be much higher than car repair costs.

If you already have collision coverage, you may not need UMPD/UIMPD, since collision coverage can also pay for damage to your car, regardless of who is at fault.

What is stacking?

Stacking in the context of Uninsured (UM) and Underinsured Motorist (UIM) Coverage is a way to increase your coverage limits by combining (or "stacking") the UM/UIM limits of multiple vehicles on your policy or across multiple policies.

There are two types of stacking:

Intra-Policy Stacking (Within One Policy)

This applies when you insure multiple vehicles on the same policy with UM/UIM coverage.

Instead of just using the limit for one vehicle, you can combine the limits of all insured vehicles to increase your total coverage.

Example:

• You have two cars on your policy. Each has $50,000 in UM/UIM bodily injury coverage.
• With stacking, you can combine both limits for a total of $100,000 in coverage if you’re hit by an uninsured or underinsured driver.

Inter-Policy Stacking (Across Multiple Policies)

This applies if you have multiple auto insurance policies (for example, if you have separate policies for different vehicles).

You can stack UM/UIM coverage across policies to increase your protection.

Example:

• You own two cars, each insured under a separate policy with $50,000 in UM/UIM coverage. If stacking is allowed, you could combine them for $100,000 in total coverage.

Pros of stacking:

• Higher coverage limits without needing to buy extra insurance.
• More financial protection if an uninsured or underinsured driver hits you.

Cons of stacking:

• Higher premiums (since insurance companies take on more risk).
• Not allowed in every state—some states prohibit stacking.

Is stacking allowed in your state?

Stacking rules vary by state. Some states allow it, while others restrict or prohibit it. If you're unsure whether you can stack UM/UIM coverage in your state, check with your insurance company.

Can I add uninsured and underinsured coverage to my policy?

Yes! In most cases, you can add Uninsured and Underinsured Motorist coverage to your auto insurance policy—either when you first purchase your policy or later as an adjustment.

How to Add UM/UIM Coverage to Your Policy

• ‍Check your current policy: Review your declarations page or call your insurance provider to see if you already have UM/UIM coverage and what the limits are.‍
• Contact your insurance company: Reach out to your insurer to request adding or increasing UM/UIM coverage.‍
• Choose your coverage limits: You’ll typically be offered UM/UIM limits that match your liability coverage (but you can choose lower limits in some states).‍
• Confirm cost and changes: Adding UM/UIM coverage may slightly increase your premium, but it’s usually affordable and provides crucial protection.‍
• Finalize and update your policy: Your insurer will process the change, and your new coverage will take effect on the agreed start date.

Things to Consider Before Adding UM/UIM Coverage

• ‍Is UM/UIM coverage required in your state? If so, you may already have it.‍
• How common are uninsured drivers in your area? If uninsured drivers are frequent, UM/UIM is extra valuable.‍
• Do you have health and collision coverage? UM/UIM helps cover medical bills and lost wages that health insurance may not. UMPD/UIMPD can cover vehicle damage if you don’t have collision coverage.

Does uninsured motorist insurance cover hit and run accidents?

Yes, Uninsured Motorist (UM) coverage can cover hit-and-run accidents, but it depends on:

• ‍Your state’s laws: Some states require UM to cover hit-and-run accidents, while others exclude them unless the at-fault driver is identified.
• ‍Your policy terms: Some insurance policies automatically include hit-and-run coverage under Uninsured Motorist Bodily Injury, while others may require you to opt-in.

How UM Coverage Helps in a Hit-and-Run

• ‍UM Bodily Injury: Covers your medical expenses, lost wages, and pain and suffering if a hit-and-run driver injures you.‍
• UM Property Damage: May cover damage to your car, but some states don’t allow UMPD claims for hit-and-run accidents. Instead, you may need collision coverage to pay for repairs.

Do I need uninsured motorist bodily injury coverage if I have health insurance?

Maybe. Even if you have health insurance, Uninsured Motorist Bodily Injury coverage can still be valuable.

Here’s why:

Covers more than just medical bills

• Health insurance only covers medical expenses, but UMBI also covers:
  
  • Lost wages if you can’t work
  • Pain and suffering (which health insurance won’t cover)
  • Funeral expenses in case of a fatal accident

No deductibles or copays

• With UMBI, you don’t have to pay a deductible or co-pays like you would with health insurance.
• Some health insurance plans have high out-of-pocket costs, but UMBI can cover expenses without those extra fees.

Covers passengers

• If you have passengers in your car during the accident, their medical expenses are also covered under UMBI (unlike health insurance, which only covers you).

Can be used before health insurance

• Many auto insurers pay out UMBI claims first, meaning you may not even have to use your health insurance.

Helps if you have limited or no disability coverage

• If an accident leaves you unable to work, UMBI helps replace lost income, unlike health insurance, which does not cover lost wages.

When you might not need UMBI

• If you have strong health insurance with low deductibles and copays,
• If you have short- and long-term disability insurance to cover lost wages,
• If you live in a state that has robust Personal Injury Protection (PIP) coverage (common in no-fault states),

Then you might be okay without UMBI—but it’s still good to have for extra protection.

How much uninsured motorist coverage do I need?

The amount of Uninsured Motorist coverage you need depends on several factors, including your state’s requirements, financial situation, and risk tolerance.

Here’s how to decide:

Check Your State’s Minimum Requirements

Some states require UM coverage, while in others, it’s optional. Even if it’s required, the minimum limits may not be enough to fully cover your medical expenses and lost wages after a serious accident.

Match Your UM Limits to Your Liability Limits

A good rule of thumb:

Choose UM coverage limits that match your Bodily Injury Liability (BIL) limits.

• If your liability coverage is $100,000 per person / $300,000 per accident,
• Your UM coverage should also be $100,000/$300,000 to ensure equal protection.

Liability insurance protects other people if you cause an accident, but UM coverage protects you if an uninsured driver hits you.

Consider Your Medical Expenses and Lost Wages

• If you don’t have health insurance or have high deductibles, you should get higher UM limits to cover medical costs.
• If you rely on your income to support your family, UM coverage helps replace lost wages if you can’t work after an accident.

Factor in the Risk of Uninsured Drivers in Your Area

• 1 in 8 drivers in the U.S. is uninsured.
• In some states (like Florida, Mississippi, and New Mexico), more than 20% of drivers are uninsured.

If you live in a high-risk state, higher UM limits are strongly recommended.

Do You Need UM Property Damage (UMPD) Coverage?

• If you don’t have collision insurance, UMPD helps pay for repairs if an uninsured driver damages your car.
• Some states don’t allow UMPD claims for hit-and-run accidents, so check your state’s laws.

Recommended UM coverage limits:

Bottom Line: How Much UM Coverage Should You Get?

• At least match your liability limits ($100,000/$300,000 is a good baseline).
• If you have no/little health insurance, go for higher limits ($250,000+).
• If you live in a state with lots of uninsured drivers, higher UM limits protect you better.

How do I get UM/UIM coverage?

Getting Uninsured Motorist and Underinsured Motorist coverage is easy, and you can add it to your auto insurance policy in a few simple steps.

Check Your Current Policy

• Look at your declarations page (summary of your coverage).
• See if UM/UIM coverage is already included.
• If you don’t have it, check your liability limits to determine how much coverage you may need.

If you have minimum liability limits, you may want to increase both liability and UM/UIM for better protection.

Contact Your Insurance Provider

• Call your insurance company or agent and ask to add UM/UIM coverage.
• You can also check online if your insurer allows policy updates through their website or app.

What to ask your agent

• "Do I already have UM/UIM coverage?"
• "What limits do you recommend based on my policy?"
• "How much will it cost to increase my coverage?"

Choose Your Coverage Limits

Many insurance companies match UM/UIM limits to your bodily injury liability coverage.

You can typically choose limits like:

• ‍$50,000/$100,000 (per person/per accident)
• ‍$100,000/$300,000 (recommended)
• ‍$250,000/$500,000 (higher protection)

Higher limits offer better financial protection but may slightly increase your premium.

Decide If You Want to “Stack” Coverage (if allowed in your state)

• Stacking means combining UM/UIM limits across multiple vehicles on your policy.
• In some states, this can double or triple your coverage amount.

Example:
If you have $100,000 UM/UIM coverage on two cars, stacking allows you to use $200,000 in coverage instead of just $100,000.

Ask your agent if stacking is allowed in your state and if it’s worth adding.

Confirm the Cost and Update Your Policy

• UM/UIM coverage is usually affordable, adding only a small cost to your premium.
• Once you select your limits, your insurance company will update your policy.
• Double-check your new declarations page to ensure the coverage is correctly added.

Keep Proof of Coverage in Your Vehicle

• Your insurance card or policy documents may list UM/UIM coverage.
• If you’re ever in a hit-and-run or an accident with an uninsured driver, you’ll need this info to file a claim.

Tips Before You Buy UM/UIM Coverage

• ‍Compare quotes from multiple insurers if you’re shopping for a new policy.‍
• Ask about discounts that may offset any cost increase.‍
• Make sure your UM/UIM limits fit your financial situation—enough to cover serious injuries & lost wages.

‍