Despite legal requirements in nearly every state, more than 15% of drivers are on the road without car insurance. Another 18% don’t have enough coverage to pay another driver’s bills after an accident.
Combined, that’s a third of all motorists nationwide. If you’re hit by one of them, you could be on the hook for your medical expenses and vehicle repairs, even if you’re not at fault.
Nearly one in five accidents with injuries involved losses greater than the at-fault driver’s coverage limits, according to the Insurance Research Council.
That’s why many auto insurance companies offer uninsured and underinsured motorist coverage (UM/UIM). It shields policyholders from at-fault drivers with insufficient liability insurance.
Only some states require drivers to carry UM — and even fewer mandate both UM and UIM coverage — but enrolling in both could save you thousands of dollars.
What is uninsured motorist coverage?
Uninsured motorist (UM) coverage reimburses you if you’re hit by a driver without car insurance. In some states, it also covers hit-and-run accidents.
UM combines:
- Uninsured Motorist Property Damage Coverage (UMPD): Covers damages to your car. Some policies also cover damage to other property and pay for a rental car while your vehicle is being repaired.
- Uninsured Motorist Bodily Injury Coverage (UMBI): Pays for medical bills, pain and suffering, lost wages, funeral costs and other out-of-pocket expenses.
What is underinsured motorist coverage?
Underinsured motorist (UIM) coverage is similar to uninsured motorist coverage, but it pays out if you are hit by someone who doesn’t have enough liability coverage to pay for all your medical expenses and car repair bills.
There are two main types of coverage in this category:
- Underinsured Motorist Bodily Injury Coverage (UIMBI): Pays for medical bills, pain and suffering, lost wages, funeral costs and other out-of-pocket expenses.
- Underinsured Motorist Property Damage Coverage (UIMPD): Covers damages to your car. Some policies also pay for damage to other property and for a rental car while yours is being repaired
If you’re hit by someone without liability insurance (or with too little), you would file a claim with your own insurance company, which would reimburse you up to the limits in your UM/UIM policies.
There is no deductible; however, filing a claim may still affect your insurance premiums.
What states require uninsured motorist insurance?
Twenty-two states and Washington, D.C. require drivers to have uninsured motorist (UM) coverage. Many of them also require UIM insurance, although the specifics vary greatly. Check with our state’s Department of Motor Vehicles or Department of Insurance to see if UM/UIM coverage is required and the exact amount.
| State | UM requirements | UIM requriements |
|---|---|---|
| Alabama | None | None |
| Alaska | None | None |
| Arizona | None | None |
| Arkansas | None | None |
| California | None | None |
| Colorado | None | None |
| Connecticut | $25,000 | $50,000 |
| Delaware | None | None |
| Florida | None | None |
| Georgia | None | None |
| Hawaii | None | None |
| Idaho | None | None |
| Illinois | $25,000 per person, $50,000 per accident | None |
| Indiana | $25,000 per person, $50,000 per accident | $50,000 |
| Iowa | None | None |
| Kansas | $25,000 | $50,000 |
| Kentucky | None | None |
| Louisiana | None | None |
| Maine | $50,000 | $100,000 |
| Maryland | $30,000 per person, $60,000 per accident, $15,000 property damage | None |
| Massachusetts | $20,000 per person, $40,000 per accident | None |
| Michigan | None | None |
| Minnesota | $25,000 per person, $50,000 per accident | None |
| Mississippi | None | None |
| Missouri | $25,000 per person, $50,000 per accident | None |
| Montana | None | None |
| Nebraska | $25,000 | $50,000 |
| Nevada | None | None |
| New Hampshire | If purchased, $25,000 per person, $50,000 per accident | None |
| New Jersey | $25,000 | $50,000 |
| New Mexico | None | None |
| New York | $25,000 per person, $50,000 per accident | None |
| North Carolina | $50,000 per person, $100,000 per accident | $50,000 |
| North Dakota | $25,000 | $50,000 |
| Ohio | None | None |
| Oklahoma | None | None |
| Oregon | $25,000 | $50,000 |
| Pennsylvania | None | None |
| Rhode Island | If higher than minimum liability coverage is purchased, at least $25,000 per person and $50,000 per accident | None |
| South Carolina | $25,000 per person, $50,000 per accident, $25,000 property damage | |
| South Dakota | $25,000 | $50,000 |
| Tennessee | None | None |
| Texas | None | None |
| Utah | None | None |
| Vermont | $50,000 per person, $100,000 per accident, $10,000 property damage | None |
| Virginia | None | None |
| Washington | None | None |
| Washington, D.C. | $25,000 per person, $50,000 per accident, $5,000 property damage | None |
| West Virginia | $25,000 per person, $50,000 per accident, $25,000 property damage | None |
| Wisconsin | $25,000 per person, $50,000 per accident | None |
| Wyoming | None | None |
How much is UM/UIM coverage?
Adding UM/UIM coverage to your car insurance policy adds about $5 to $25 a month to your premiums, according to Bankrate.
However, the exact cost varies based on your location, driving record and insurance company, among other factors.
How to buy UM/UIM coverage
You should request UM/UIM coverage when purchasing your auto insurance policy. If your state requires it, it may already be included in your quote.
Whether your state’s minimum UM/UIM requirement is sufficient depends on your budget and the type of car you drive. If you own a 2026 Porsche 911, for example, Maryland’s $15,000 minimum for UM property damage coverage is likely insufficient. If you drive a 2013 Toyota Corolla, though, it may be more than enough.
If your state doesn’t require UM/UIM, choose an amount that makes sense based on the value of your car and your financial situation. A good rule of thumb is to match your liability coverage limits.
To see if you already have UM/UIM coverage, check your current auto insurance policy declarations page or log into your insurer’s mobile app or website.
Paying too much for car insurance? Check out these options to save.
Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.
Geico auto coverage is available in all 50 states and Washington, D.C., with 16 discounts and add-ons like roadside assistance, rental car reimbursement and mechanical breakdown insurance.
UM/UIM coverage FAQs
Do I need to have uninsured motorist coverage?
Car owners are required to have uninsured motorist coverage in 22 states and Washington, D.C. Check your state’s Department of Motor Vehicles or Department of Insurance website to see if UM/UIM coverage is required and the exact amount.
Is UM/UIM coverage worth it?
While UM and UIM coverage add to your monthly premiums, it’s a lot less than what you’d have to pay after a serious accident where you were hit by someone who was uninsured or underinsured. Nearly 20% of collisions with injuries involved medical expenses that were beyond the at-fault driver’s coverage limits.
How much uninsured motorist coverage do I need?
If you’re in a state that requires it, you must choose an amount equal to or greater than the minimum requirement. If your state doesn’t require UM/UIM, matching your liability coverage limits is a good rule of thumb.
Subscribe to the CNBC Select Newsletter!
Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.
Why trust CNBC Select?
At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every car insurance article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties, and we pride ourselves on maintaining high journalistic standards and ethics.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.