Updated April 2026
What Is Uninsured Motorist Coverage Insurance?
Uninsured Motorist Coverage has two components: bodily injury (UMBI) and property damage (UMPD). UMBI pays for your medical bills, lost wages, and pain and suffering when an uninsured or underinsured driver causes an accident that injures you or your passengers. UMPD covers damage to your vehicle when the at-fault driver has no insurance. Some states bundle underinsured motorist protection automatically, which kicks in when the other driver's liability limits are too low to cover your full losses.
- You're stopped at a red light when a driver without insurance rear-ends you at 40 mph. You sustain $25,000 in medical bills and $8,500 in vehicle damage. The at-fault driver has no assets to sue for. Your Uninsured Motorist Bodily Injury coverage with a $50,000 limit pays your medical costs in full. If you carry UMPD with a $500 deductible, it pays $8,000 toward vehicle repairs — without this, you'd rely on collision coverage or pay out of pocket.
- A driver sideswipes your car on the highway and flees the scene. You suffer a concussion and $18,000 in medical expenses, plus $6,200 in vehicle damage. Police file a report but never identify the driver. Your UMBI coverage treats this as an uninsured motorist claim and pays up to your policy limit for medical costs. UMPD covers the vehicle damage minus your deductible, assuming your state allows hit-and-run claims under uninsured motorist provisions.
- A driver with only $15,000 in liability coverage causes a multi-car accident that leaves you with $40,000 in injuries. Their insurer pays their $15,000 limit. Your Underinsured Motorist Coverage (often bundled with UM) pays the remaining $25,000, up to your policy limit. Without this coverage, you'd face a $25,000 gap unless you sued the driver personally — often futile if they carry minimum insurance because they lack assets.
Who Needs Uninsured Motorist Coverage Insurance?
If you live in a state with a high percentage of uninsured drivers (above 12%), carry this coverage regardless of whether it's required. Drivers who would struggle to pay $20,000+ in medical bills out of pocket should prioritize UMBI, especially if they lack robust health insurance with low out-of-pocket maximums. Underinsured Motorist Coverage becomes essential if you carry liability limits above your state's minimum, since you're signaling you value adequate protection — the same logic applies to protecting yourself.
Calculate your financial exposure: Add your health insurance deductible, out-of-pocket maximum, and 3–6 months of income you couldn't replace through savings or disability insurance. If that number exceeds $25,000, carry at least $50,000/$100,000 in UMBI. Compare your UMPD deductible against your collision deductible — if collision is equal or lower, skip UMPD unless your state requires it.
How Much Does Uninsured Motorist Coverage Insurance Cost?
Uninsured Motorist Coverage typically adds $8 to $20 per month to your premium, or approximately $100 to $250 annually.
- Your coverage limits: $25,000/$50,000 costs significantly less than $100,000/$300,000 in bodily injury protection.
- State uninsured motorist rate: High-uninsured states like Mississippi or Michigan see higher premiums due to elevated claim frequency.
- Whether you add UMPD: Adding property damage coverage increases cost by $3 to $8 per month depending on your deductible choice.
- Stacking vs. non-stacking: Stacked coverage, which multiplies limits across multiple vehicles on your policy, costs 15% to 40% more than non-stacked.
- Your liability limits: Insurers often tie UM limits to your liability coverage, so higher liability limits may require higher UM limits.
- Urban vs. rural location: Urban drivers typically pay more due to higher accident rates and uninsured driver concentrations.