How to Choose Uninsured Motorist Coverage Limits
Uninsured and underinsured motorist coverage can help when another driver has no liability insurance or not enough insurance for a covered loss. The harder question is how much protection to select, because the numbers on the declarations page determine how much may be available after a serious claim.
NAIC reports that 15.4% of U.S. motorists were uninsured in 2023, or about one in seven drivers, with state rates ranging from 5.7% in Maine to 28.2% in Mississippi [1]. The Insurance Research Council separately reported that 33.4% of drivers were either uninsured or underinsured in 2023 [2].
The goal is not to pick the largest limit automatically. A useful choice starts with understanding per-person and per-accident limits, then comparing your passengers, income exposure, health coverage, savings, state rules, and the actual premium difference between limit options.
What a Split Limit Like 100/300 Actually Means
Uninsured motorist bodily injury limits are often shown as two numbers. Forbes Advisor uses 100/300 as an example: up to $100,000 for one injured person and up to $300,000 for all covered injured people in one accident, subject to the policy and state rules [3].
| Limit example | Per-person ceiling | Per-accident ceiling |
|---|---|---|
| 25/50 | Up to $25,000 for one covered injured person. | Up to $50,000 total for all covered injured people in one accident. |
| 50/100 | Up to $50,000 for one covered injured person. | Up to $100,000 total for all covered injured people in one accident. |
| 100/300 | Up to $100,000 for one covered injured person. | Up to $300,000 total for all covered injured people in one accident. |
These examples explain how split limits work; they are not recommendations for a particular driver. Available limits and the way benefits are coordinated can differ by state, insurer, and policy language.
UM, UIM, and UMPD Do Not Share the Same Limit Structure Everywhere
Limit selection becomes confusing when several related coverages appear on the same policy. Uninsured motorist bodily injury generally addresses covered injuries caused by an uninsured driver, while underinsured motorist coverage addresses covered losses when the at-fault driver has insurance but the available liability limits are insufficient. Uninsured motorist property damage is a separate vehicle-damage coverage where offered.
UMBI
Look for the bodily injury limit and whether it is shown per person and per accident. Passenger coverage and hit-and-run rules depend on the policy and state.
UIM
Confirm whether underinsured motorist protection is included with UM, selected separately, or handled differently under your state rules.
UMPD
Property-damage coverage may have its own dollar limit, deductible, or eligibility rules and should not be assumed to match bodily injury limits.
Start With the Financial Gap You Could Actually Absorb
The most useful question is not whether a limit sounds large. Ask what would happen if an uninsured or underinsured driver caused a serious injury and the available coverage stopped before medical bills, lost income, or other covered losses were resolved.
Lower limits create a smaller claim ceiling
A lower limit may reduce premium, but one seriously injured person can reach the per-person ceiling before the household’s total financial loss is resolved.
Higher limits transfer more risk
Higher limits can provide a larger financial buffer, but the added protection should be compared with the real premium increase and your state-specific options.
Lower UM/UIM limits may reduce the premium, but the cost difference between UM/UIM limit levels may be modest relative to the reduction in the maximum protection available after a covered claim.
Passenger Count Makes the Per-Accident Limit Important
The second number in a split limit matters when several people are injured in the same crash. A policy can have a reasonable-looking per-person limit but still have a per-accident ceiling that multiple covered people must share.
| Illustrative situation | What the limit controls | Why to check it |
|---|---|---|
| One injured person | The per-person limit can become the main ceiling for that person’s covered claim. | A high per-accident limit does not raise the maximum available to one person above the per-person amount. |
| Several injured passengers | The per-accident limit can cap the combined amount available for all covered injured people. | Families and drivers who regularly carry passengers should understand both numbers, not only the first. |
| Property damage | UMPD, where available, may use a separate limit and deductible. | Bodily injury limits should not be assumed to pay for vehicle repairs. |
Should UM/UIM Limits Match Your Liability Limits?
A common comparison is to place bodily injury liability limits and UM/UIM bodily injury limits side by side. This can make it easier to see whether the protection you carry for yourself and passengers is materially lower than the liability protection you carry for injuries you may cause to others.
Matching limits is not a universal rule. State law and insurer forms can control which limits are available, whether a lower selection is permitted, and whether a written rejection or selection form is required. Treat matching liability limits as a comparison point rather than an automatic recommendation.
Compare these numbers together
- Bodily injury liability per person.
- Bodily injury liability per accident.
- UM bodily injury per person and per accident.
- UIM bodily injury limits, if separate.
- UMPD and collision deductibles where relevant.
Do not rely on “full coverage”
“Full coverage” is not a standardized policy limit. The declarations page is more useful because it shows the actual coverages, limits, and deductibles selected on the policy.
State Rules Can Restrict the Choice
UM/UIM is not handled uniformly across the country. A 2025 NAIC Auto Insurance Database report states that 23 states require UM coverage and 19 additional states require it unless the insured rejects it in writing, while state-specific rules also differ for UIM and property-damage coverage [4].
That means a national article cannot tell every driver which exact limit is available or whether coverage may be rejected. Verify the current rule in your state and compare the declarations page with any coverage-selection or rejection form before making a change.
Required coverage
Some states require UM at specified minimums or tie available options to other policy limits.
Offer and rejection rules
Some states require insurers to offer the coverage but allow the policyholder to reject or select lower limits in writing.
Stacking and UMPD
Rules for combining limits across vehicles and for uninsured motorist property damage vary substantially by jurisdiction.
Local Driving Exposure Can Change the Trade-Off
Statewide uninsured-driver percentages are useful context, but they do not tell you exactly who you will encounter on the road. Commute length, traffic density, time spent driving, passenger frequency, and your ability to absorb an uncovered loss can all change how valuable a higher limit feels.
Drivers who spend more time in dense traffic may face greater exposure to uninsured drivers in higher-risk areas, which can affect how much financial risk a household retains when choosing lower UM/UIM limits.
When Existing Limits Deserve Another Look
A limit that made sense when a policy was first purchased can become outdated. Moving, adding a driver, carrying passengers more often, changing jobs or commute length, increasing income, or changing health-insurance deductibles can alter the amount of risk the household can comfortably retain.
Instead of changing coverage only at renewal out of habit, changing UM/UIM limits after life changes is easier to evaluate when you compare the old limit, the proposed limit, and the exact premium difference side by side.
Household changes
New drivers, more passengers, or an additional vehicle can change the potential exposure in one accident.
Financial changes
Income, savings, health coverage, and the ability to miss work can change how much risk you can absorb personally.
Driving changes
A longer commute, relocation, or more time on the road can justify reviewing whether old limits still fit.
Compare Quotes With the Same Limits
NAIC consumer guidance recommends deciding the coverages and policy limits you need before comparing prices, then requesting quotes with the same coverages and limits from each company [5]. Otherwise, a cheaper quote may simply contain weaker UM/UIM protection.
Premium differences between UM/UIM plans with matching limits are more meaningful because the underlying protection is closer to equivalent.
Read the declarations page
Write down the exact UM, UIM, UMPD, liability, and collision limits or deductibles you currently carry.
Request two or three limit levels
Ask the insurer to show the premium difference rather than assuming a higher limit will be unaffordable.
Keep quote assumptions equal
Use the same drivers, vehicles, liability limits, UM/UIM limits, and deductibles across insurers.
Confirm the final paperwork
Check the declarations page and any UM/UIM selection or rejection form after the policy is issued or changed.
FAQ: Uninsured Motorist Coverage Limits
What does a 100/300 uninsured motorist limit mean?
It commonly means up to $100,000 for one covered injured person and up to $300,000 total for all covered injured people in one accident. The actual claim is still subject to state law and policy terms.
How much uninsured motorist coverage should I carry?
There is no single limit that fits every driver. Compare state requirements, liability limits, passengers, income exposure, health coverage, savings, driving frequency, and the premium difference between available limits.
Should UM/UIM match my bodily injury liability limits?
It is a useful side-by-side comparison, and some states or policy structures may link the available amounts. It is not a universal recommendation, so confirm the options allowed under your state and policy.
Does the per-accident limit apply to each passenger?
No. In a split-limit structure, the per-accident amount is generally the combined ceiling for all covered injured people in the same accident, while each person is also subject to the per-person ceiling.
Is uninsured motorist property damage included in the bodily injury limit?
Usually it is treated separately where available. UMPD can have its own limit and deductible, and some states handle vehicle damage through different options or collision coverage.
Can I lower UM/UIM limits to reduce my premium?
Possibly, if your state and insurer permit the lower selection. Compare the actual savings with the reduction in the claim ceiling before deciding, and confirm any required selection or rejection paperwork.
Bottom Line
Choosing uninsured motorist coverage limits is mainly a risk-allocation decision. The policy takes on covered losses up to the applicable limit, while losses beyond that limit may remain with you or depend on other insurance and recovery options.
Read both numbers in a split limit, consider how several injured people could share the per-accident amount, separate bodily injury protection from property damage, verify your state rules, and compare the actual premium difference before selecting a lower or higher limit.
References
- National Association of Insurance Commissioners, Uninsured Motorists, including the 15.4% national uninsured-motorist estimate and 2023 state variation. Source↩
- Insurance Research Council, One in Three Drivers Are Either Uninsured or Underinsured in the U.S., reporting a 33.4% combined rate for 2023. Source↩
- Forbes Advisor, What Is Uninsured Motorist Coverage?, including split-limit examples, average UMBI cost estimates, and UM/UIM limit guidance. Source↩
- National Association of Insurance Commissioners, 2022/2023 Auto Insurance Database Report, including state-specific UM/UIM requirements and technical notes. Source↩
- National Association of Insurance Commissioners, Consumer’s Guide to Auto Insurance, including guidance to compare quotes using the same coverages and limits. Source↩