Uninsured Motorist Coverage (UM): What It Is, What It Covers, and Why You Need It

Quick Answer: Uninsured Motorist Coverage (UM) protects you if you’re injured in an accident caused by an uninsured driver or a hit-and-run driver. When the at-fault driver has no car insurance, your UM coverage helps pay for medical bills, lost wages, and other injury-related costs. Without it, you may have to pay those expenses out of pocket. 

What Is Uninsured Motorist Coverage (UM)?

Uninsured Motorist Coverage (UM) is part of your car insurance that protects you when the at-fault driver has no insurance policy or leaves the scene after an accident. In that situation, your own insurer steps in and pays for losses the other driver should have covered under liability insurance. 

In simple terms, UM coverage puts your policy in the place of the uninsured driver. As a result, it can help with personal injury costs like medical bills and lost wages after an accident. Depending on your state and policy, it may also help with vehicle damage. 

UM coverage is typically made up of two parts: 

• Uninsured Motorist Bodily Injury (UMBI): This pays for injuries to you and your passengers. It can cover medical expenses, lost income, pain and suffering, and, in severe cases, funeral costs. 
• Uninsured Motorist Property Damage (UMPD): This helps pay to repair or replace your vehicle if it’s damaged by an uninsured motor vehicle. Availability and limits vary by state, and some policies apply a deductible.

Insurance regulators and consumer guides explain that these two pieces exist to close the gap when the at-fault driver has no coverage at all. That’s the core purpose of uninsured motor vehicle coverage in your auto insurance policy.

Why Uninsured Motorist Coverage Matters 

Uninsured Motorist Coverage (UM) matters because a significant portion of drivers on U.S. roads have little or no liability insurance to protect you if they cause an accident. According to the Insurance Information Institute, about 15.4% of drivers nationwide were completely uninsured in 2023 — that’s more than 1 in 7 drivers without insurance. 

The risk is even greater when you include drivers with too little coverage. A study by the Insurance Research Council found that in the same year, about one in three drivers (33.4%) were either uninsured or underinsured, meaning their policy might not fully cover your costs after a crash. 

Put simply, without UM coverage, you could be left paying your own medical bills or lost wages if an uninsured driver injures you. That’s why this protection is more than optional. It’s a financial safety net for everyday drivers like you. 

Learn more: What happens if you don’t have car insurance

What Does Uninsured Motorist Coverage Pay For?

Uninsured Motorist Coverage (UM) helps cover costs you would normally recover from the other driver’s liability insurance if they were insured. When that coverage is missing, UM coverage steps in for you. 

In most cases, uninsured motorist coverage can help pay for: 

• Personal injury expenses, including medical bills and follow-up care 
• Lost wages if your injury keeps you from working 
• Pain and suffering related to the accident 
• Funeral expenses in fatal crashes 
• In some states, vehicle repairs are covered through UMPD coverage if an uninsured driver damages your car

Insurance regulators and consumer guides from groups like the National Association of Insurance Commissioners explain that UM exists to mirror what the at-fault driver’s insurance policy should have paid. Because coverage rules vary by state, what your UM insurance pays for depends on where you live and how your car insurance policy is written.

What Uninsured Motorist Coverage Does Not Cover

Uninsured Motorist Coverage (UM) has limits. Knowing what it does not cover helps you avoid surprises after an accident. 

In most states, UM coverage does not pay for: 

• Damage to your own car if you only carry UMBI and not UMPD coverage 
• Repairs after an at-fault crash you caused yourself 
• Vehicle damage that should be handled by collision insurance 
• Injuries if the other driver is insured and their liability insurance is sufficient 
• Routine medical care unrelated to the accident 
• Intentional acts or criminal activity 
• Claims that exceed your UM insurance limits

Consumer guidance from insurance regulators, including the National Association of Insurance Commissioners, makes this clear. Uninsured motorist coverage is designed to replace missing liability coverage, not to act as all-purpose car insurance.  That’s why pairing UM coverage with the right mix of vehicle insurance matters for you.

When Does Uninsured Motorist Coverage Apply?

Uninsured Motorist Coverage (UM) applies only in specific situations. It does not activate after every accident. Instead, it steps in when the at-fault driver cannot provide valid liability insurance. 

In most cases, UM coverage applies when:

• You’re injured by an uninsured driver 
• You’re hit by a driver who flees the scene in a hit-and-run accident 
• You’re injured as a passenger, pedestrian, or cyclist struck by an uninsured vehicle 
• The at-fault driver’s insurance is invalid, lapsed, or denied

In short, the other driver must be legally responsible for the accident for uninsured motorist coverage to apply. That’s an important point for you. If you caused the crash, or if the other driver is fully insured, UM insurance will not step in.

If an Uninsured Driver Hits You: How UM Coverage Works

When an uninsured driver hits you, the claims process shifts to your own insurance policy. First, you report the accident to the police and notify your insurer. This step matters, especially for hit-and-run claims. Then, your insurer investigates fault, just as it would if the other driver had liability insurance. 

Once the fault is confirmed, your UM coverage steps in. It pays eligible costs up to your policy limits, such as medical bills and lost income. In other words, your insurer temporarily takes the place of the at-fault driver’s missing coverage. 

Consumer guidance from the National Association of Insurance Commissioners explains that UM claims still require proof of fault and damages. Because of that, keeping records, medical reports, and repair estimates helps protect you during the process. 

Uninsured Motorist Bodily Injury (UMBI) vs Uninsured Motorist Property Damage (UMPD)

As we said, Uninsured Motorist Coverage (UM) usually comes in two separate parts. Each one protects you in a different way. Understanding the difference helps you choose the right car insurance setup. 

UMBI focuses on people. It pays for injuries to you and your passengers if an uninsured driver causes the accident. This can include medical bills, lost wages, and pain and suffering. 

UMPD focuses on your vehicle. It helps pay to repair or replace your car if it’s damaged by an uninsured motor vehicle. In some states, this coverage has a deductible or coverage limits. 

Here’s the simple breakdown:

Not every state offers both, and some policies include only one by default. That’s why checking how UM coverage is structured in your auto insurance policy matters for you. 

Is Uninsured Motorist Coverage Required by State?

Yes, in many states, both uninsured and underinsured motorist coverage is required by law. However, the rules are not the same everywhere. This is where confusion often starts. 

Currently, around 20 states plus Washington, D.C. require drivers to carry UM coverage, UIM coverage, or both as part of a standard car insurance policy. In these states, you cannot legally buy auto insurance without this protection included. 

States that mandate some form of uninsured and/or underinsured motorist coverage include: 

• Connecticut 
• Illinois 
• Kansas 
• Maine 
• Maryland 
• Massachusetts 
• Minnesota 
• Missouri 
• Nebraska 
• New Hampshire 
• New Jersey 
• New York 
• North Carolina 
• North Dakota 
• Oregon 
• South Carolina 
• South Dakota 
• Vermont 
• Virginia 
• West Virginia 
• Wisconsin 
• Washington, D.C.

That said, not all mandates work the same way. Some states require UM/UIM coverage automatically. Others only require insurers to offer it, giving you the option to reject it in writing. 

Because of these differences, whether UM coverage is required for you depends entirely on your state. That’s why checking your local rules before declining this coverage is an important step when reviewing your auto insurance policy.

How Much Uninsured Motorist Coverage Should You Carry?

You should carry enough uninsured motorist coverage to protect your finances after a serious crash. In simple words, your UM coverage limits should usually match your liability insurance limits, or be higher if you can afford it. 

For most drivers, a practical rule works well. Match your UMBI limits to your bodily injury liability limits. This keeps your protection balanced. You’re covered the same way whether you cause an accident or an uninsured driver causes one. 

You should also think beyond the minimum if your situation calls for it: 

• If you have savings, a home, or dependents, higher limits offer better protection 
• State minimum limits often fall short of real-world medical and recovery costs 
• Many drivers aim for at least $100,000 per person / $300,000 per accident when possible, since serious injuries can quickly exceed lower limits

Medical costs rise fast after an injury. Hospital care, follow-up treatment, and time away from work can add up to tens of thousands of dollars. Higher UM insurance limits reduce the chance that you’ll have to pay those costs out of pocket. 

The good news is the cost. Adding or increasing uninsured motorist coverage usually raises your premium only slightly. For many drivers, that small increase buys meaningful financial protection when the other driver has no insurance at all.

Uninsured Motorist Coverage vs Underinsured Motorist Coverage (UM vs UIM)

Uninsured coverage means someone with no insurance at all. And underinsured indicates a driver carrying a very low amount of coverage that doesn’t provide enough to cover all the expenses after a car crash. See the following table to understand their differences clearly:

Quick Note: UM coverage protects you when the other driver has nothing. UIM coverage protects you when the other driver has too little. For many drivers, carrying both provides the most complete protection against real-world accident costs.

Common Myths About Uninsured Motorist Coverage

Many drivers misunderstand Uninsured Motorist Coverage (UM). These myths often lead people to drop coverage they actually need. Here’s what you should know. 

• “I don’t need UM because I have health insurance.”

Health insurance may cover medical bills. However, it does not pay for lost wages, pain and suffering, or long-term financial losses after an accident. 

• “UM only helps if the other driver has no insurance at all.”

UM also applies in hit-and-run crashes. If the driver cannot be identified, UM coverage may still protect you. 

• “Collision coverage makes UM unnecessary.”

Collision insurance pays for vehicle damage, not personal injury. UM insurance focuses on injuries when the at-fault driver has no coverage. 

• “I’ll never need UM because uninsured drivers are rare.”

In reality, more than one in seven U.S. drivers are uninsured, which increases your risk every time you drive. 

• “UM coverage is expensive.”

In most cases, uninsured motorist coverage adds only a small amount to your premium compared to the protection it provides.

How to Add Uninsured Motorist Coverage to Your Car Insurance Policy

Adding Uninsured Motorist Coverage (UM) is usually simple. In most cases, it’s an optional add-on you choose when buying or updating your car insurance. 

Here’s how to do it the right way: 

• Ask for UM and UIM together. Many insurers bundle uninsured and underinsured motorist coverage, so you don’t miss protection. 
• Choose limits intentionally. Match your UM coverage limits to your liability insurance, or go higher if you want extensive protection. 
• Confirm UMBI vs UMPD. Make sure your policy includes UMBI for injuries. Ask whether UMPD coverage is available in your state for vehicle damage. 
• Check opt-out rules. In some states, insurers must offer UM/UIM, but you can reject it in writing. Don’t sign that waiver without reviewing the risks. 
• Review cost impact. Increasing UM insurance limits usually adds a small amount to your premium compared to the coverage you gain.

Before finalizing your policy, ask your insurer to explain how uninsured motorist coverage works in real claims. That clarity helps you avoid gaps when you need protection most. 

Is Uninsured Motorist Coverage Worth It?

Yes, for most drivers, Uninsured Motorist Coverage (UM) is worth it. It protects you from a risk you cannot control. You cannot choose who drives near you or whether they carry car insurance. 

Uninsured drivers are still common across the U.S. If one of them causes an accident, there may be no liability insurance to pay for your injuries. In that situation, UM coverage may be the only way your medical bills and lost income get paid. 

The cost is usually very little. Adding or increasing UM insurance often raises your premium by a small amount compared to the protection it provides. Yet the financial impact of a serious injury can be significant without it. 

Bottom Line: Do You Need Uninsured Motorist Coverage?

Yes. You should carry Uninsured Motorist Coverage (UM). It’s a smart and practical choice for most drivers. 

You cannot control who drives around you. You also cannot control whether they carry car insurance or enough liability insurance to cover serious injuries. With more than 1 in 7 U.S. drivers uninsured, that risk is real every day you’re on the road. 

Without UM coverage, an accident caused by an uninsured driver can leave you paying for medical bills, lost wages, and recovery costs out of your own pocket. Lawsuits rarely help if the other driver has no money or assets. So, yes, you should definitely consider carrying UM coverage even if your state doesn’t require it. 

Learn More: Types of Car Insurance Coverage

Uninsured Motorist Coverage FAQs 

Is it better to have uninsured motorist or collision coverage? 

Neither replaces the other. Collision coverage pays to repair or replace your car after a crash, no matter who caused it. Uninsured Motorist Coverage (UM) protects you if an uninsured driver injures you and cannot pay. If you want protection for both your vehicle and crash injuries, you need both coverages working together. 

Why reject uninsured motorist coverage? 

Some drivers reject UM coverage to lower their premiums or because their state allows them to opt out in writing. Others rely on health insurance or believe the risk is low. However, rejecting UM means you accept the risk of paying medical bills and lost wages yourself if an uninsured driver causes the accident. 

What happens when an uninsured driver hits you in Michigan? 

In Michigan, your own no-fault insurance typically pays medical bills and certain wage losses through Personal Injury Protection. However, if the uninsured driver causes serious injury, UM coverage can help cover damages that no-fault does not fully address. Suing the uninsured driver is possible in limited cases, but collecting money is often difficult. 

Why don’t you need uninsured motorist coverage? 

You may not need uninsured motorist coverage if you can comfortably cover medical costs and income loss on your own or if you accept the financial risk. For most drivers, though, medical expenses add up quickly after an accident. Skipping UM is a calculated decision, not a default one.