Uninsured and Underinsured Motorist Coverage Explained
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Last updated on November 30, 2025
Understanding Uninsured and Underinsured Motorist Coverage
Author
Jane Taylor
— licensed auto and home insurance agent
Editorial note: This article is for general educational purposes and should not replace advice from your own insurance company, licensed agent, or attorney.
Driving on the road comes with inherent risks, and one of the most important protections you can have is adequate uninsured motorist (UM) and underinsured motorist (UIM) coverage. These coverages are designed to protect you when you’re hit by a driver who either has no insurance at all or doesn’t have enough liability coverage to pay for your medical bills and other losses.
Many drivers aren’t sure how much uninsured and underinsured motorist coverage they actually need. The “right” amount depends on factors like your state’s minimum requirements, your driving habits, your budget, and what it would realistically cost you to recover from a serious accident. For a deeper dive into how these coverages work together, you can review our guide on uninsured vs underinsured motorist coverage and see scenarios where each one applies.
Adjusting your coverage can feel overwhelming, but it doesn’t have to be. In this guide, we’ll walk through how to evaluate your personal risk, understand your state’s rules, and talk to your insurance provider so you can choose uninsured and underinsured motorist limits that match your real-world needs—not just the legal minimums.
Evaluating Your Driving Habits
The first step in deciding how much uninsured and underinsured motorist coverage you need is to take an honest look at how and where you drive. Your everyday habits have a direct impact on your level of risk.
Ask yourself questions like:
- How often do I drive? Daily commuting creates more exposure than occasional weekend trips.
- How far do I drive? Long highway commutes or frequent road trips increase the chance of encountering an uninsured driver.
- Where do I usually drive? High-traffic urban areas, regions with higher accident rates, or places with many uninsured drivers may call for higher UM and UIM limits.
- When do I drive? Night driving or rush-hour traffic can increase collision risk.
Summary: Your driving frequency, distance, and typical routes all affect your chances of being hit by an uninsured or underinsured driver. The more you’re on the road—or the riskier your routes—the more important it is to choose higher UM and UIM limits.
Local Regulations and State Requirements
Uninsured and underinsured motorist rules vary widely by state. Some states require drivers to carry UM or UIM coverage, others make it optional but require insurers to offer it, and a few allow you to reject it in writing.
Key points to review for your state include:
- Whether UM and/or UIM coverage is mandatory or optional.
- The minimum limits required (if any) for bodily injury and property damage.
- Whether stacking UM or UIM coverage across multiple vehicles is allowed.
- Special rules around hit-and-run accidents and how they are treated under UM coverage.
Your state’s minimums are a useful baseline, but they’re rarely enough to protect you in a serious crash. Many drivers choose UM and UIM limits that match or exceed their own liability limits so they’re equally protected whether they cause an accident or are hit by someone who is not properly insured.
Assessing Your Financial Risk
Next, think about what would happen financially if you were injured by an uninsured or underinsured driver tomorrow. Without adequate UM or UIM coverage, you may have to rely on your health insurance, personal savings, or even lawsuits to cover your costs.
Consider the following when assessing your financial risk:
- Medical expenses: Emergency care, follow-up visits, physical therapy, and long-term treatment can easily exceed state minimum liability limits.
- Lost income: If your injuries prevent you from working, UM and UIM coverage can help replace lost wages.
- Vehicle repairs or replacement: UM property damage coverage may help repair or replace your car if the at-fault driver can’t pay.
- Out-of-pocket costs: Travel to appointments, home modifications, and other expenses can add up quickly.
If paying these costs out of pocket would put your savings, home, or future plans at risk, that’s a strong argument for choosing higher UM and UIM limits rather than relying on the minimum required by law.
Estimating the Average Cost of Coverage in Your Area
The cost of adding or increasing uninsured and underinsured motorist coverage is usually modest compared to the protection it provides. However, prices can vary depending on where you live, claim trends in your area, and how many uninsured drivers are on the road.
Factors that can influence the cost of UM and UIM coverage include:
- The estimated percentage of uninsured drivers in your state or region.
- Local accident frequency and average claim sizes.
- Your driving record, vehicle type, and chosen coverage limits.
To get a sense of what you might pay, you can explore our breakdown of uninsured motorist coverage costs, which explains typical pricing patterns, what can make your rate go up or down, and how to compare quotes effectively.
Typical UM and UIM Coverage Levels
While the best limits depend on your personal situation, many insurers offer uninsured and underinsured motorist coverage in tiers that mirror your bodily injury liability limits. Here is a simplified overview of how different levels might fit different drivers:
| UM/UIM Limit (per person / per accident) | Best For | Pros / Considerations |
|---|---|---|
| $25,000 / $50,000 | Drivers on a tight budget or in states with low minimums | Meets basic needs but may not cover serious injuries or multiple passengers. |
| $50,000 / $100,000 | Average households with some savings and a moderate risk profile | Provides more realistic protection for medical bills in many accident scenarios. |
| $100,000 / $300,000 or higher | Drivers with higher income, significant assets, or frequent highway commuting | Helps protect savings, home equity, and future earnings from being wiped out by a serious crash. |
Whenever possible, many experts recommend matching your UM and UIM limits to your own bodily injury liability limits so you’re equally protected whether you cause an accident or are injured by an uninsured or underinsured driver.
Engaging with Your Insurance Provider
Once you’ve thought through your risk, the laws in your state, and your budget, it’s time to talk with your insurance provider or agent. A good conversation is specific and honest about your situation, rather than just asking for “the cheapest coverage.”
Before you call or visit, gather:
- Your current policy declarations page (showing your existing limits and premiums).
- Any recent changes in your household, commute, or vehicles.
- Questions about how UM and UIM would apply in realistic scenarios you’re concerned about.
Ask your agent to walk you through how different UM and UIM limits would change both your premium and your protection. If you’re comparing multiple insurers, make sure each quote uses the same limits so you’re comparing apples to apples.
Understanding Policy Limits and How They Work
Every policy includes specific limits that cap how much your insurer will pay under uninsured and underinsured motorist coverage. These limits can be written per person/per accident (for bodily injury) and may also include separate limits for property damage.
With UM and UIM coverage, you will typically see:
- Bodily injury limits: The maximum your insurer will pay for medical expenses, lost wages, and related damages.
- Property damage limits: If offered in your state, this can help repair or replace your vehicle and certain property.
- Combined single limits: In some policies, a single dollar amount applies to all covered damages from one accident.
Understanding these limits on your declarations page helps you avoid unpleasant surprises after a crash. If the numbers look low compared to local medical costs or your income, that’s a sign you might want to increase your UM and UIM coverage.
Reviewing and Adjusting Your Policy Over Time
Your life and driving habits don’t stay the same—and your insurance shouldn’t either. It’s smart to review your UM and UIM limits regularly, especially when your situation changes.
You may want to revisit your coverage if:
- You move to a new state or city with different traffic patterns or insurance requirements.
- You start commuting farther, driving for work, or adding teen drivers to your policy.
- Your income, savings, or assets increase, making you more concerned about protecting what you’ve built.
- You purchase a newer or more expensive vehicle.
Building a reminder to review your policy at each renewal (or at least once a year) is an easy way to make sure your uninsured and underinsured motorist coverage keeps up with your real needs.
Seeking Expert Advice When You’re Unsure
If you’re still uncertain about what limits to choose, getting expert input can be invaluable. A licensed insurance agent or independent broker can help you weigh your state’s requirements, your budget, and the risks you face on the road.
In more complex situations—such as owning multiple properties, running a small business, or having a high net worth—you may also want to speak to a financial planner or attorney about how UM and UIM coverage fits into your overall protection plan.
“I always review my uninsured and underinsured motorist limits at renewal so I know my family is still properly protected—not just meeting the minimums.”
Frequently Asked Questions About UM and UIM Coverage
Is uninsured motorist coverage really necessary if my state doesn’t require it?
Even if your state doesn’t mandate UM coverage, it can still be a smart purchase. In many areas, a meaningful share of drivers are uninsured or carry only minimum limits that may not cover serious injuries. UM coverage helps make sure you and your passengers aren’t left paying the price for someone else’s decision to drive without adequate insurance.
Should my UM and UIM limits match my liability limits?
Many insurance professionals suggest matching your UM and UIM limits to your bodily injury liability limits when possible. That way, you’re offering yourself and your family at least as much protection as you are offering others if you cause a crash. If your budget doesn’t allow for higher limits right away, consider gradually increasing them over time.
Does UM or UIM coverage pay for my car repairs?
In some states, uninsured motorist property damage (UMPD) coverage can help pay for repairs to your vehicle if you’re hit by an uninsured driver. In others, collision coverage may be the primary protection for your car. Because rules vary widely by state and by insurer, it’s important to ask your agent exactly how UM, UIM, and collision coverage would work together on your policy.
Conclusion
Choosing the right levels of uninsured and underinsured motorist coverage is not just about checking a box—it’s about making sure you’re financially protected when other drivers on the road aren’t properly insured. By evaluating your driving habits, understanding your state’s rules, thinking through your financial risk, and comparing potential costs, you can choose limits that make sense for your life instead of relying on bare minimums.
Regularly reviewing your policy with a knowledgeable agent and adjusting your UM and UIM limits as your situation changes will help you maintain solid protection over time. That way, if the worst happens, you can focus on recovering—not on figuring out how to pay the bills.
Disclaimer: Coverage availability, limits, and rules vary by state and by insurer. Always review your specific policy documents and consult directly with a licensed insurance professional before making coverage decisions.