Uninsured motorist coverage (UMC) steps in to cover the costs of injuries and damages sustained by you and your passengers in the event of an accident caused by an uninsured or underinsured driver. Essentially, UMC acts as a substitute for the liability coverage that the responsible driver should have had but didn’t. With approximately 12.6% of US motorists lacking insurance, it becomes essential to contemplate the inclusion of UMC in your auto insurance policy, especially if it’s not already mandated in your state. Depending on your state, Uninsured and Underinsured Motorist coverage may be bundled or offer up to four distinct coverage options:
If you’re hit by a driver with no insurance;
- Uninsured Motorist Bodily Injury (UM BI) may pay medical bills and lost wages for both you and your passengers.
- Uninsured Motorist Property Damage (UM PD) may pay for damage to your vehicle and other property.
If you’re hit by a driver with insufficient insurance;
- Underinsured Motorist Bodily Injury (UIM BI) may pay the rest of medical bills for you and your passengers.
- Underinsured Motorist Property Damage (UIM PD) may pay for the rest of damage to your vehicle and other property.
20 states and D.C. require uninsured motorist coverage. Some states may require a deductible for U/UIM Property Damage, but U/UIM Bodily Injury doesn’t have a deductible.
Hit-and-run-accidents are also covered by uninsured motorist insurance but some states may exclude it in case of property damage claims. In such cases, you may need Collision coverage to claim for damages to your vehicle.
Most states don’t allow uninsured motorists coverage to exceed your liability coverage limits. The states that mandate UMC often require matching UMC with your liability limits.
Do You Need Uninsured Motorist Coverage?
Minimum required uninsured motorist coverage costs roughly between $33 – $76 a year depending on the state and company. It will cost a bit more if you have higher limits. You have to buy UMC if it is required in your state. If it is optional, you may not need U/UIM Bodily Injury coverage depending on your health insurance. So, you may need to consider the following points if you have health insurance:
- Check to make sure your health insurance covers traffic accident injuries.
- U/UIM BI coverage doesn’t normally have deductibles. If your health insurance has high deductibles, you may want to consider this coverage.
- U/UIM BI covers your passengers as well.
- U/UIM BI may include loss wages but your health insurance doesn’t.
Also, Medical Payments and Personal Injury Protection (PIP) will cover your medical costs no matter who is at fault. So, take them into account in your decision making if you have either coverage.
Collision coverage pays for damages to your vehicle caused by uninsured drivers as well and therefore overlaps with U/UIM Property Damage. However, U/UIM PD may pay for other property damages as well as the vehicle.
Which States Require Uninsured/Underinsured Motorist Coverage?
Most states don’t mandate these coverages but you may still have the option to purchase it. In 21 states and D.C., you are required to buy U/UIM Bodily Injury coverage but only few of them require U/UIM Property Damage coverage. Some states combine uninsured and underinsured motorist coverage and others may only make uninsured motorist coverage available. For example, In New Hampshire, you have other options to show financial responsibility but you need to have uninsured and underinsured motorist coverage if you choose to buy the state required minimum coverage.
Below table shows the statistics for the ratio of uninsured motorists as well as minimum uninsured motorist coverage requirements in each state;
| States | Uninsured Motorist Ratios (%) | Minimum Uninsured Motorist Coverage Requirements |
| Alabama | 19.5% | Coverage is optional |
| Alaska | 16.1% | Coverage is optional |
| Arizona | 11.8% | Coverage is optional |
| Arkansas | 19.3% | Coverage is optional |
| California | 16.6% | Coverage is optional |
| Colorado | 16.3% | Coverage is optional |
| Connecticut | 6.3% | Coverage is optional |
| Delaware | 8.5% | Coverage is optional |
| D.C. | 19.1% | UM BI: $25,000 per person, $50,000 per accident UM PD: $5,000 per accident, deductible $200 |
| Florida | 20.4% | Coverage is optional |
| Georgia | 12.4% | Coverage is optional |
| Hawaii | 9.3% | Coverage is optional |
| Idaho | 13.2% | Coverage is optional |
| Illinois | 11.8% | U/UIM BI: $25,000 per person, $50,000 per accident |
| Indiana | 15.8% | Coverage is optional |
| Iowa | 11.3% | Coverage is optional |
| Kansas | 10.9% | U/UIM BI: $25,000 per person, $50,000 per accident |
| Kentucky | 13.9% | Coverage is optional |
| Louisiana | 11.7% | Coverage is optional |
| Maine | 4.9% | U/UIM BI: $50,000 per person, $100,000 per accident |
| Maryland | 14.1% | U/UIM BI: $30,000 per person, $60,000 per accident U/UIM PD: $15,000 per accident |
| Massachusetts | 3.5% | UM BI: $20,000 per person, $40,000 per accident |
| Michigan | 25.5% | Coverage is optional |
| Minnesota | 9.9% | UM BI: $25,000 per person, $50,000 per accident |
| Mississippi | 29.4% | Coverage is optional |
| Missouri | 16.4% | UM BI: $25,000 per person, $50,000 per accident |
| Montana | 8.5% | Coverage is optional |
| Nebraska | 9.3% | UM BI: $25,000 per person, $50,000 per accident |
| Nevada | 10.4% | Coverage is optional |
| New Hampshire | 6.1% | UM BI: $25,000 per person, $50,000 per accident UM PD: $25,000 per accident |
| New Jersey (Required on standard policies) | 3.1% | U/UIM BI: $25,000 per person, $50,000 per accident U/UIM PD: $5,000 with a $500 deductible |
| New Mexico | 21.8% | Coverage is optional |
| New York | 4.1% | UM BI: $25,000 per person, $50,000 per accident |
| North Carolina | 7.4% | U/UIM BI: $30,000 per person, $60,000 per accident U/UIM PD: $25,000 per accident |
| North Dakota | 13.0% | U/UIM BI: $25,000 per person, $50,000 per accident |
| Ohio | 13.0% | Coverage is optional |
| Oklahoma | 13.4% | Coverage is optional |
| Oregon | 10.7% | UM BI: $25,000 per person, $50,000 per accident UM PD: $20,000 per accident |
| Pennsylvania | 6.0% | Coverage is optional |
| Rhode Island | 16.5% | Coverage is optional |
| South Carolina | 10.9% | UM BI: $25,000 per person, $50,000 per accident UM PD: $25,000 per accident, deductible $200 |
| South Dakota | 7.4% | U/UIM BI: $25,000 per person, $50,000 per accident |
| Tennessee | 23.7% | Coverage is optional |
| Texas | 8.3% | Coverage is optional |
| Utah | 6.5% | Coverage is optional |
| Vermont | 8.8% | U/UIM BI: $50,000 per person, $100,000 per accident U/UIM PD: $10,000 per accident, deductible $150 |
| Virginia | 10.5% | U/UIM BI: $30,000 per person, $60,000 per accident U/UIM PD: $20,000 per accident, deductible $200 |
| Washington | 21.7% | Coverage is optional |
| West Virginia | 9.2% | UM BI: $25,000 per person, $50,000 per accident UM PD: $10,000 per accident, deductible $300 |
| Wisconsin | 13.3% | UM BI: $25,000 per person, $50,000 per accident |
| Wyoming | 5.8% | Coverage is optional |
| The US average | 12.6% | |
| Abbreviations | U/UIM: Uninsured/Underinsured Motorist UM: Uninsured Motorist BI: Bodily Injury PD: Property Damage |
Interestingly, UMC may be optional in some states with the highest ratio of uninsured motorists like Mississippi but mandated in others with the lowest UM ratio like Massachusetts. In states where there are high UM rates, vehicle insurance rates are likely to be affected by the losses caused by UM.
These coverages can be very helpful and you should consider them even if they are optional in your state. If an uninsured or underinsured motorist hits you, you may have to pay for your injuries and damages out of pocket without UMC. Even if you have alternative coverage within your auto insurance policy, you may have a high collision deductible or not have enough Personal Injury Protection for your and your passengers’ injuries.