This coverage in brief, and when it matters
Uninsured motorist coverage (often shortened to UM) pays for your losses when a driver who is at fault has no insurance at all. Underinsured motorist coverage (UIM) helps when the at-fault driver has insurance, but not enough to cover the harm they caused. The two are often sold together.
This is coverage for you and the people in your car, not for the other driver. That makes it different from most of what you buy on an auto policy. You can control your own driving and your own limits. You can't control whether the person who runs a red light has a valid policy or only the legal minimum.
Think about the injuries more than the car. A crash that leaves you with a broken bone can mean medical bills, missed paychecks and months of follow-up care. If the driver who caused it has nothing to pay with, UM and UIM are often what stand between you and those costs.
Some states require UM or UIM, some require insurers to offer it and let you decline it in writing, and some leave it optional. That varies a great deal, so ask what applies where you live.
Covered vs. not covered: the usual lists
Depending on your policy and state, UM and UIM can pay for:
- Medical bills for you and your passengers
- Lost wages while you recover
- Pain and suffering, in states that allow it
- Damage to your car (uninsured motorist property damage, where offered)
- Injuries from a hit-and-run driver, in many states
It generally does not pay for:
- Damage or injuries you cause to someone else
- Your car's damage when collision already covers it, under some policies and state rules
- Losses above your UM or UIM limits
The numbers that set your price
UM and UIM limits are usually shown the way liability limits are, with a per-person and a per-accident amount. Many insurers let you match your UM limits to your liability limits, and some states require them to offer that match. Uninsured motorist property damage may carry its own deductible.
Some states also allow stacking, which lets you combine UM limits across more than one car on a policy, or across policies. Stacking can add real protection, and it usually costs more. Whether it's available, and how it works, depends on your state and your insurer. Underinsured coverage can also be calculated in different ways, either paying on top of the other driver's limits or being reduced by them, so ask how each partner's policy handles it.
Price varies too. Each insurer prices UM and UIM differently, and the cost depends partly on how common uninsured drivers are in your area and on the limits you choose. Because it protects your own household, many people see it as a coverage worth keeping even when they trim elsewhere. Compare it at the same limits on every quote.
Timing, and what happens after you submit the form
After a crash with an uninsured or hit-and-run driver, reporting rules matter. Many policies and states expect you to notify the police and your insurer promptly, and the deadlines for a UM claim differ by state and by policy. Read your policy, and call your insurer as soon as you reasonably can.
Gather what you can at the scene: photos, witness names and phone numbers, and any detail about the other car. If the other driver does stop, get their name, license and insurance information, even if they insist they are covered.
If you want to review your UM and UIM options, the AutoAssures form sends one request to up to four licensed partners that write auto policies in your state. They contact you with quotes, and you compare at your own pace. It's free to use, with no obligation to buy anything. Ask each partner whether stacking is offered and whether your UM limits can match your liability limits.
