Car accidents can be expensive, especially if the other driver has no insurance or not enough coverage to pay for damages. This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage comes in.
If you’re in an accident caused by a driver with no insurance or insufficient insurance, UM/UIM coverage helps pay for medical bills, lost wages, and other expenses. Without this coverage, you could be left paying out of pocket for damages caused by another driver’s negligence.
Let’s explore how Uninsured and Underinsured Motorist Coverage works, why it’s important, and how it protects you on the road.
1. What is Uninsured Motorist Coverage (UM)?
Uninsured Motorist (UM) coverage protects you if you’re hit by a driver who does not have insurance. Even though car insurance is legally required, some drivers break the law and drive without coverage.
How UM Coverage Helps:
- Medical expenses for you and your passengers
- Lost wages if you can’t work due to injuries
- Pain and suffering compensation (varies by state)
- Hit-and-run accidents (in many cases)
Example: If an uninsured driver runs a red light and hits your car, UM coverage will pay for your medical bills and other costs that the at-fault driver should have covered.
2. What is Underinsured Motorist Coverage (UIM)?
Underinsured Motorist (UIM) coverage protects you when the at-fault driver has insurance, but not enough to cover all your damages.
How UIM Coverage Helps:
- Pays the remaining balance after the at-fault driver’s insurance is exhausted
- Covers medical expenses, lost wages, and pain & suffering
- Fills coverage gaps when the at-fault driver’s policy has low limits
Example: If a driver with minimum insurance causes a crash and their policy only covers $25,000 of your $50,000 medical bill, UIM coverage will pay the remaining $25,000.
3. Why is UM/UIM Coverage Important?
Not all drivers follow the law, and many carry only the minimum insurance required. Here’s why UM/UIM coverage is essential:
The Risks of Uninsured and Underinsured Drivers:
- 1 in 8 drivers in the U.S. is uninsured
- Many states have low minimum insurance limits that don’t cover major accidents
- Hit-and-run accidents are common, leaving victims with no compensation
- Medical bills, lost wages, and long-term injuries can cost thousands of dollars
Without UM/UIM insurance, you might have to pay out of pocket for expenses that should have been covered by the at-fault driver.
4. What Does UM/UIM Cover?
✅ Covered by UM/UIM Insurance:
✔ Medical bills (hospital, surgery, therapy)
✔ Lost wages due to injury
✔ Pain and suffering (in some states)
✔ Funeral costs (if applicable)
✔ Hit-and-run accidents (varies by policy)
❌ Not Covered by UM/UIM Insurance:
✖ Damage to your car (unless you have UM Property Damage Coverage)
✖ Injuries to the at-fault driver
✖ Stolen vehicles
Tip: To cover vehicle repairs, consider adding Collision Coverage or UM Property Damage Coverage to your policy.
5. How Much UM/UIM Coverage Do You Need?
The amount of UM/UIM coverage you need depends on:
✅ Your state’s minimum insurance laws
✅ The cost of medical care in your area
✅ Whether you have health insurance to cover some costs
✅ Your ability to pay out of pocket if needed
Recommended Coverage Amounts:
- $100,000 per person / $300,000 per accident (ideal for most drivers)
- Higher limits if you don’t have health insurance or drive in areas with many uninsured drivers
Tip: Check your state’s laws—some states require UM/UIM coverage, while others make it optional.
6. Does UM/UIM Cover Hit-and-Run Accidents?
Yes! In most cases, Uninsured Motorist Coverage covers hit-and-run accidents, meaning:
- If another driver hits your car and flees, UM coverage helps pay for your injuries.
- Some states require you to report the accident to police within 24-72 hours for coverage to apply.
- UM Property Damage Coverage (if included) may cover vehicle repairs.
Tip: Always report a hit-and-run to your insurance company and police as soon as possible.
7. Does UM/UIM Cover Passengers?
Yes! Your Uninsured/Underinsured Motorist Coverage also covers passengers in your car at the time of the accident.
- Your passenger’s medical bills will be covered just like yours.
- They don’t need their own UM/UIM policy—your policy covers them.
- If multiple people are injured, coverage limits apply per accident, not per person.
Tip: If you often have passengers in your car, consider higher UM/UIM limits to protect them.
8. How Much Does UM/UIM Coverage Cost?
Uninsured and Underinsured Motorist Coverage is affordable compared to other parts of a car insurance policy.
Average Cost:
- Adding UM/UIM coverage to a policy costs about $50-$100 per year.
- Costs depend on your state, driving history, and coverage limits.
- Some states require higher coverage, which may increase the cost.
Tip: Since UM/UIM is relatively cheap, it’s worth adding to your policy for extra protection.
FAQs
1. Is Uninsured Motorist Coverage Required?
It depends on your state. Some states require UM/UIM coverage, while others make it optional.
2. Does UM/UIM Cover Car Repairs?
No, UM/UIM only covers injuries. You need Collision Coverage or UM Property Damage Coverage for car repairs.
3. What’s the Difference Between Uninsured and Underinsured Motorist Coverage?
- Uninsured Motorist (UM) helps when the at-fault driver has NO insurance.
- Underinsured Motorist (UIM) helps when the at-fault driver has too little insurance.
4. Will UM/UIM Cover Me if I’m a Pedestrian?
Yes! If you’re hit by a car while walking, your UM/UIM policy may cover your medical bills.
5. Should I Get UM/UIM If I Have Health Insurance?
Yes! UM/UIM covers lost wages, pain & suffering, and other costs that health insurance won’t cover.