Uninsured motorist (UM) coverage pays for your medical bills and car repairs when a driver without car insurance hits you. It also protects you if you’re involved in a hit-and-run incident. Drivers typically combine UM with underinsured motorist (UIM) coverage, which applies when the at-fault driver doesn’t have enough insurance.

Some states mandate UM/UIM coverage, but even when it’s not required, experts recommend adding it to your policy since 14% of drivers don’t have insurance.1

What does uninsured motorist insurance cover?

Uninsured motorist insurance helps cover the cost of medical bills for you and your passengers when an uninsured driver causes an accident. It also pays for your vehicle repairs. The primary benefit of UM coverage is that you won’t have to pay out of pocket when another driver is at fault — even if they don’t have insurance.

After an accident, your insurance company will try to recover the payment from the at-fault driver’s insurer. But it’s impossible to get payment if the other driver doesn’t have coverage. The same is true if you’re the victim of a hit-and-run accident. UM coverage simplifies the process and allows you to file a claim through your insurer.2

Uninsured motorist policies have two types of coverage: bodily injury and property damage. Here’s what they include.

Underinsured motorist coverage

Underinsured motorist coverage helps pay for your medical bills and vehicle repairs when the at-fault driver doesn’t have adequate coverage. For example, let’s say your car is totaled, and the adjuster reports that the car’s value is $30,000.

The other driver only has property damage liability insurance for up to $20,000, which doesn’t cover the total amount. Your underinsured motorist coverage would pay the difference.

Do you need uninsured motorist coverage?

UM and UIM coverage is only mandatory in some states. But most drivers can benefit from the extra protection. Adding it to an existing policy is usually inexpensive, and it can help you save thousands of dollars if an uninsured driver causes an accident.

Full-coverage insurance, which includes comprehensive, liability, and collision coverage, usually also includes UM/UIM. But it’s important to confirm your coverage details with your insurer since this can vary from one company and policy to the next.

Uninsured and underinsured motorist laws by state

Many states mandate uninsured/underinsured motorist coverage as part of their minimum insurance requirements. Other states don’t require the coverage, but you can add it to your policy for an extra cost.3

States that require UM/UIM coverage require different amounts, and laws may change, so be sure to check with your state about local insurance requirements.

Here are some states that mandate coverage and their requirements.

How much does uninsured motorist coverage cost?

While the cost of uninsured motorist coverage varies by state and your unique driving profile, it’s usually inexpensive to add this coverage to your car insurance policy. Your policy already includes the coverage if you live in a state that requires UM/UIM coverage. And most full-coverage car insurance policies also include the coverage.

Here’s the average cost of full-coverage car insurance, including UM/UIM coverage, from different insurers.