Uninsured motorist (UM) coverage is a crucial component of an auto insurance policy that provides protection when you’re in an accident with another driver who lacks insurance. Should you have UM coverage, it compensates for injuries to you and your passengers and can cover damage to your vehicle in certain instances. Some states mandate the inclusion of uninsured motorist coverage in auto insurance policies, while others offer UM as an optional endorsement you can add.
Key Highlights
- Comprehensive Protection: Uninsured motorist coverage (UM) is a form of car insurance that pays for injuries and damages caused by an uninsured driver.
- Inclusion of Hit-and-Run Drivers: Hit-and-run drivers are also considered uninsured motorists, ensuring broader protection.
- State Variations: Many states require UM coverage, while it remains optional in others.
How Uninsured Motorist Coverage Operates
Most state laws require motorists to carry some level of automobile liability insurance, and requirements vary significantly by state. Interestingly, New Hampshire does not demand a minimum amount of auto insurance coverage, and Virginia allows drivers to opt out for a fee.
Despite these laws, Around 12% of U.S. drivers are uninsured, according to research from the Insurance Research Council. Mississippi leads with the highest proportion of uninsured drivers at 29.4%, while New Jersey ranks the lowest at 3.1%.
Given the risks posed by collisions with uninsured drivers, over half of the states along with Washington, D.C., require auto insurance policies to include uninsured motorist coverage. Other states mandate it under specific circumstances, such as when opting for liability limits higher than the state’s minimum.
If you’re involved in an accident where the at-fault driver is uninsured, your UM coverage steps in to handle vehicle repairs and medical bills. Even accidents involving hit-and-run drivers are covered under UM.
Types of Uninsured Motorist Coverage
- Uninsured Motorist Bodily Injury (UMBI): This covers medical bills resulting from a crash.
- Uninsured Motorist Property Damage (UMPD): This covers damage to your vehicle. In some states, only UMBI may be available.
Uninsured Motorist vs. Underinsured Motorist Coverage
Drivers with minimal insurance might have insufficient coverage during an accident. While most states impose minimum liability coverage, some drivers opt for the lowest amounts available, potentially causing financial strain on others involved in an accident.
Key Differences
Uninsured motorist coverage is distinct from underinsured motorist coverage (UIM), which provides protection when the at-fault driver has insurance but not enough to fully cover the damages. Some states mandate both UM and UIM coverage, but it’s vital to check with your state’s department of motor vehicles.
Note: Some states and insurers permit
Related Terms: Underinsured Motorist Coverage, Auto Liability Insurance, Hit-and-Run Accidents, Minimum Insurance Requirements.
References
- Progressive. “Progressive Uninsured/Underinsured Motorist Coverage”.
- Progressive. “Car Insurance Requirements by State”.
- Insurance Research Council. “News Release: One in Eight Drivers Uninsured”.
- Cornell Law School Legal Information Institute. “Uninsured Motorist Clause”.
- Rhode Island Department of State. “Uninsured and Underinsured Motorist Insurance (230-RICR-20-05-1)”, See 1.5.
- Liberty Mutual. “Uninsured Motorist Coverage”.
- South Dakota Department of Labor and Regulation, Division of Insurance. “Automobile Insurance”.
- Progressive. “What Is Uninsured Motorist Coverage?”
- Allstate. “Stacked vs. Unstacked Car Insurance”.
- Allstate. “Uninsured Motorist Coverage and Underinsured Motorist Coverage”.
- Commonwealth of Virginia, State Corporation Commission, Bureau of Insurance. “Auto Insurance: Consumer’s Guide”, Page 8.
- New Hampshire Insurance Department. “2022 Automobile Insurance Consumer Frequently Asked Questions”, Page 7.
- New Jersey Department of Banking and Insurance. “New Jersey Auto Insurance Buyer’s Guide”.
- Texas Department of Insurance. “What Is Uninsured Motorist Coverage, and Do I Really Need It?”
- Nationwide. “Uninsured Motorist Coverage”.
