Uninsured Motorist Coverage Guide

Yes, you do need uninsured motorist coverage if you live in one of the 20 states that require all drivers to have uninsured motorist (UM) insurance. Even if uninsured motorist coverage is not mandatory in your state and can be declined, it's great to have coverage that protects you in the event of an accident with an uninsured driver.

Uninsured motorist coverage costs around $50 to $70 annually for both bodily injury and property damage coverage. Considering how affordable it is, it's almost always worth the investment.

States That Require Uninsured Motorist Coverage

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

Note: Uninsured motorist coverage is also required in the District of Columbia.

If you live in an area that has a high percentage of uninsured drivers, it is especially important to protect yourself. Mississippi has the highest rate of uninsured drivers, at 29.4%, while the state with the lowest uninsured-driver rate is New Jersey, at only 3.1%. Remember that your standard liability insurance will not protect you in an accident with an uninsured motorist.

However, there are some instances where uninsured motorist insurance may not be necessary. Several other types of coverage can offer protection in any accident, regardless of whether the other driver has insurance. 

You May Not Need Uninsured Motorist Coverage If:

• You have personal injury protection or MedPay to cover your medical costs regardless of fault.
• You have collision insurance to cover any accident-related vehicle damage.
• You can afford to pay out-of-pocket for your own injuries and property damage resulting from a serious accident.

Finally, it's worth noting that uninsured motorist coverage is often combined with underinsured motorist insurance, which helps cover your accident-related expenses if the at-fault driver has insurance but not enough coverage to pay for your costs.

To learn more, check out WalletHub's guide to uninsured motorist coverage.

What Is Uninsured Motorist Property Damage?

Uninsured motorist property damage (UMPD) is a type of auto insurance that pays for damage to your car or other property if it is damaged by a driver without car insurance. UMPD can cover damage to the policyholder's vehicle as well as stationary objects that they own, including their house and fence.

Uninsured motorist property damage insurance is commonly purchased with underinsured motorist property damage insurance, which applies when the at-fault driver is insured but does not have enough liability insurance to cover the policyholder's expenses.

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No, you should not reject uninsured motorist coverage unless you have collision insurance and enough medical coverage to pay for your expenses after an accident caused by an uninsured driver. Drivers can reject uninsured motorist coverage in states where it is optional but still has to be offered by insurance companies. For instance, drivers in California, Florida, and Texas can legally reject uninsured motorist coverage. In 21 other states, including New York and Illinois, uninsured motorist coverage is required, so drivers cannot reject it.  

Uninsured motorist (UM) coverage is still a good investment even if it's not mandatory in your state. The price of UM varies based on each driver's risk factors, but it averages around $50-$75 annually. Given that an estimated 1 in 8 drivers in the U.S. is uninsured, this coverage is an inexpensive way to protect yourself financially.

Uninsured motorist insurance is divided into two categories, bodily injury and property damage. Both kinds of UM insurance are designed to replace the liability coverage that an at-fault driver should have purchased. Covered drivers can file a claim with their own policy if they are in a crash caused by someone without liability insurance. Depending on the state and the policy, drivers might also purchase underinsured motorist (UIM) coverage, which can be used when the at-fault driver's liability insurance is insufficient.

What Happens If You Reject Uninsured Motorist Coverage?

If you reject uninsured motorist coverage, you will need to use another type of coverage or pay out of pocket in the event that you are hit by an uninsured driver. If you already have collision insurance and medical coverage of some sort, rejecting uninsured motorist coverage might be a good way to lower your premium. Otherwise, paying for uninsured motorist coverage is generally an inexpensive way to add extra protection.  

Uninsured Motorist Bodily Injury Coverage

Uninsured motorist bodily injury (UMBI) coverage is advisable for drivers who do not have personal injury protection (PIP) or MedPay insurance with high limits. PIP and MedPay cover medical expenses regardless of fault, so drivers with plenty of PIP or MedPay might not need UMBI.

However, keep in mind that the average uninsured motorist bodily injury claim was $32,337 in 2016, the latest year with data. So a few thousand dollars of PIP will not cover you for a serious accident with an uninsured driver. Similarly, UMBI requires you to pay fewer out-of-pocket expenses than general health insurance when you need to pay for medical bills after a qualifying accident.

Uninsured Motorist Property Damage Coverage

Uninsured motorist property damage (UMPD) coverage is only available in some states. UMPD is less important than the bodily injury variation for most drivers, since it overlaps entirely with collision insurance.

The main advantage that UMPD has over collision insurance is that it usually has lower premiums, since it covers fewer situations. UMPD could also be a worthwhile purchase if you don't want your collision premium to increase in the event of a claim after an accident with an uninsured driver.

For more information and to see if UM is required in your state, check out WalletHub's guide to uninsured motorist coverage.

It is better to have collision insurance because it applies in more situations than uninsured motorist coverage. Collision insurance can be used to repair or replace the policyholder's vehicle after any accident, regardless of fault, while uninsured motorist insurance only applies if an uninsured driver was at fault. But unlike collision insurance, uninsured motorist coverage can be used to cover a policyholder's medical expenses, so it's still a worthwhile investment even if you already have collision coverage.

Collision vs. Uninsured Motorist Insurance

When to Purchase Collision or Uninsured Motorist Coverage

If your state doesn't require you to have uninsured motorist coverage, then you should purchase collision insurance because it covers you after any accident, regardless of the other driver's insurance. But ideally, you should purchase both types of coverage, because they apply to different situations and don't always have a clear overlap. Specifically, collision insurance only overlaps with one type of uninsured motorist coverage.

There are two types uninsured motorist coverage: bodily injury (UMBI) and property damage (UMPD). In just over half the states, you can only purchase UMBI, which pays for your medical bills if you're hit by an uninsured motorist. UMBI does not overlap at all with collision insurance, so you should still consider getting it unless you have similar coverage through personal injury protection or medical payments coverage.

In the remaining states, uninsured motorist policies include both UMBI and UMPD, which pays for vehicle repairs after an accident with an uninsured driver. Collision insurance does overlap with UMPD, but UMPD can't be used unless the other driver is uninsured. As a result, you should still purchase collision insurance even if you have UMPD.

To learn more, check out WalletHub's guides to collision insurance and uninsured/underinsured motorist coverage.

It is worth getting uninsured motorist insurance if you can afford it and don't already have similar types of coverage. Uninsured motorist (UM) coverage pays for your medical expenses and vehicle repairs if you're hit by an uninsured driver, and it's required in several states. But considering how cheap UM insurance is, it's usually worth purchasing even if it's not required.

On average, uninsured motorist insurance only costs about $50-$75 per year. By comparison, a severe accident caused by an uninsured motorist could cost you thousands in repair costs and medical bills. As a result, uninsured motorist coverage is a worthwhile investment in order to protect yourself from the financial fallout of a wreck.

When You May Not Need Uninsured Motorist Insurance

You may not need uninsured motorist insurance if you already have overlapping coverage. For example, collision insurance will pay to repair or replace your car after any accident, including  when the other driver is uninsured. Similarly, personal injury protection (PIP) and medical payments (MedPay) coverage will pay for your medical expenses after an accident with an uninsured motorist.

To learn more, check out WalletHub's guide to uninsured motorist insurance. 

Yes, uninsured motorist insurance covers a hit and run in most states. In some states, including California and Illinois, however, drivers cannot use uninsured motorist property damage coverage to repair or replace their vehicle if the at-fault driver is unidentified. In these instances, drivers must file a claim with their collision insurance, if they have it.

Laws on uninsured motorist insurance vary widely across the country. But most places allow drivers to use uninsured motorist bodily injury (UMBI) coverage if they are injured in an accident caused by an unidentified driver. Otherwise, drivers with personal injury protection or MedPay can file an injury claim with these policies.

Rules on using uninsured motorist property damage (UMPD) for hit and runs can be stricter in order to avoid fraudulent claims, and UMPD is not even available in certain states. In addition to the states that do not allow UMPD to be used for a hit and run, some other states require the at-fault driver to have made contact with your car, as opposed to simply running you off the road or causing you to crash. It's also worth noting that Oregon and Washington have higher UMPD deductibles for hit and run claims compared with claims for damage caused by an identified driver. Indiana, on the other hand, waives your UMPD deductible if your car was hit while empty and legally parked.

If you have uninsured motorist coverage and are involved in a hit and run, it's best to check with your insurer to determine if your state's laws allow you to file a claim. If not, you should consider your other options based on the types of insurance coverage you carry.

Stacked car insurance combines the uninsured/underinsured motorist coverage limits for multiple vehicles or policies in order to increase the maximum amount an insurer will pay for a claim. Unstacked insurance refers to auto insurance coverage limits that cannot be combined across vehicles or polices.

Stacked insurance is a great way to safeguard your finances in the case of an accident. Accidents can be costly, and the higher your coverage limits are, the less money you will have to pay out of pocket for an uninsured motorist claim.

Key Things to Know About Stacked vs. Unstacked Insurance

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Yes, you need uninsured motorist coverage if you have health insurance and you live in one of the 22 states where uninsured motorist insurance is required. Even if uninsured motorist coverage is optional in your state, buying it is smart if your health insurance plan is limited or requires high out-of-pocket expenses.

Uninsured motorist insurance comes in two forms: uninsured motorist property damage (UMPD) and uninsured motorist bodily injury (UMBI). Uninsured motorist property damage coverage will pay to repair or replace your car after an accident caused by an uninsured motorist. On the other hand, uninsured motorist bodily injury coverage pays for medical bills, lost wages, and funeral expenses due to a similar accident. Some policies even compensate for pain and suffering.

Uninsured motorist bodily injury coverage can overlap with health insurance, though it generally involves fewer direct costs for the policyholder. For example, unlike UMBI, health insurance may require co-pays, co-insurance, and a deductible. Additionally, health insurance policies are often limited to a certain network of providers, while UMBI will pay for care from a wider variety of sources.

Uninsured Motorist Bodily Injury Might Be Worth It If:

• You get your health insurance through an employer you plan on leaving soon or another unreliable source.

• Your health insurance would leave you paying out-of-pocket for thousands of dollars in bills if you are hospitalized or left with a long-term condition.

• Your family members and passengers do not have good health insurance policies, since UMBI also covers the policyholder's passengers and family members.

• You can stack your UMBI policies. This involves combining the coverage on multiple vehicles or policies in order to get higher limits if you are seriously injured.

Uninsured motorist coverage is an inexpensive policy option that usually only adds about 5% to your annual car insurance premium. On the other hand, the average UMBI claim payment was $32,227 in 2016, the most recent year with data. This is a hefty sum that you would have to pay partially out-of-pocket if you only had health insurance.

In other words, buying UMBI, even if your state doesn't require it, can protect you from the financial consequences of serious injuries caused by an uninsured driver.

The truth about uninsured motorist coverage is that you only need it if you live in one of the 20 states where it is required, yet it's still worthwhile to have everywhere else. Uninsured motorist (UM) insurance will cover your medical expenses and car-repair costs after an accident caused by an uninsured driver.

In most states, when you are in an accident with an at-fault driver, that driver's liability insurance pays for your injuries and repairs. However, over 10% of drivers in the U.S. are uninsured, and they could leave you exposed to out-of-pocket costs in the event of an accident. Thus, you should strongly consider buying uninsured motorist coverage even when it's not required.

If you don't have UM insurance and you're in the market, WalletHub can help get you started with our guide to uninsured motorist coverage.

No, uninsured motorist coverage is not required in California, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $15,000 in uninsured motorist bodily injury coverage per person (up to $30,000 per accident), as well as $3,500 in uninsured motorist property damage insurance per accident.

Additionally, drivers have the option to purchase $15,000 in underinsured motorist bodily injury coverage per person (up to $30,000 per accident), along with $3,500 in underinsured motorist property damage insurance per accident.

For California drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn't have car insurance, or doesn't have enough coverage for the damage they caused.

Why You Should Get Uninsured Motorist Coverage in California

Normally, an at-fault driver's insurance helps pay for any damage after an accident. However, if the other driver doesn't have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That's where this optional insurance coverage can help you save time and money.

Even though California does not require uninsured and underinsured motorist coverage, you should still consider buying it. In California, an average of 15% of drivers on the road don't have car insurance, which means there is a 1 in 7 chance that the other driver won't have coverage if you get into an accident. Car accidents in California can be very expensive, too.

Key Facts About Uninsured Motorist Coverage in California:

• Minimum Uninsured Motorist Bodily Injury: $15,000 per person and up to $30,000 per accident
• Minimum Uninsured Motorist Property Damage: $3,500 per accident
• Minimum Underinsured Motorist Bodily Injury: $15,000 per person and up to $30,000 per accident
• Minimum Underinsured Motorist Property Damage: $3,500per accident
• Uninsured Drivers on the Road: 15%
• Odds of a Crash with an Uninsured Driver: 1 in 7