Coverage basics
Uninsured Motorist Coverage Explained: UM, UIM and How They Pay
Quick answer
Uninsured motorist coverage pays for your injuries, and in some states your car’s damage, when an at-fault driver has no insurance or, in many states, flees the scene. Underinsured motorist coverage pays when that driver’s limits are too low. Some states require it, and it differs from collision, which pays for your car regardless of fault.
Key takeaways
- UM pays when the at-fault driver has no insurance; UIM pays when their limits are too low.
- Bodily injury coverage helps with medical bills and lost wages for you and your passengers.
- Uninsured motorist property damage isn’t available in every state and may have its own deductible.
- Collision pays for your car regardless of fault; UM depends on another driver being at fault.
- Some states require UM or UIM, while others let you reject it in writing.
You can do everything right on the road and still be hit by someone with no insurance, or with only a state-minimum policy that runs out fast. Uninsured and underinsured motorist coverage is designed for that moment. It’s often bundled into full coverage, but it works differently from the other parts of your policy, and the rules depend heavily on your state.
What does uninsured motorist coverage pay for?
Uninsured motorist coverage comes in a few pieces, and you may see them listed separately on your declarations page:
- Uninsured motorist bodily injury (UMBI) pays for injuries to you, household members and your passengers when an at-fault driver has no insurance. In many states it also applies to hit-and-run crashes. It can cover medical bills, lost wages and, depending on the state, pain and suffering.
- Underinsured motorist bodily injury (UIM) pays when the at-fault driver has insurance but not enough to cover your injuries.
- Uninsured motorist property damage (UMPD) pays to repair your car when an uninsured driver is at fault, where it’s available.
Here’s an illustrative UIM example: your injury costs reach $60,000, and the at-fault driver’s bodily injury limit is $25,000. Their insurer pays $25,000. Your UIM coverage may then pay toward the remaining $35,000, up to your UIM limit. States calculate this differently; some reduce your UIM payment by what the other driver’s policy paid.
What is uninsured motorist property damage?
UMPD is the property side of the coverage, and it varies the most from state to state. Depending on where you live, it may:
- Not be offered at all
- Carry its own deductible, which can be lower than a collision deductible
- Have a fairly low maximum payout
- Require that the uninsured driver be identified, so it may not apply to a hit-and-run
- Be unavailable or unnecessary if you already carry collision, depending on state rules and the insurer
If you have collision, it can usually repair your car after a crash with an uninsured driver anyway, minus your collision deductible. UMPD can still help on a car without collision, or where it has a smaller deductible. Ask your insurer which combination makes sense for your car and your state.
How is uninsured motorist coverage different from collision?
| Question | UM/UIM bodily injury | UM property damage | Collision |
|---|---|---|---|
| What it protects | You and your passengers’ injuries | Your car | Your car |
| Does another driver have to be at fault? | Yes | Yes | No |
| Single-car crash, such as hitting a pole | No | No | Yes |
| Hit-and-run | Often, depending on the state | Varies by state | Yes |
| Deductible | Depends on state and policy | Depends on state and policy | Your collision deductible |
The short version: collision is about your car in almost any crash, while UM is about someone else’s missing or thin insurance. For more on how collision works next to comprehensive, see collision vs. comprehensive coverage.
Which states require uninsured motorist coverage?
Rules fall into a few broad groups. Some states require drivers to carry uninsured motorist coverage, and some require underinsured coverage as well. Others require insurers to offer it, and you can decline it, usually in writing. A few leave it entirely optional. If you decline it, the signed rejection usually stays on file and carries over at renewal, so you would need to ask your insurer to add the coverage back later.
Some states also allow “stacking,” which lets you combine UM limits across several vehicles on your policy for a single claim, often for a higher premium. Because the details change from state to state and over time, your state insurance department’s website is the best place to confirm what applies to you.
How much uninsured motorist coverage should you carry?
A common approach is to match your UM and UIM limits to your liability limits, which protects you at the same level you protect others. In many states, your UM limit can’t be higher than your liability limit, so the two decisions are linked; our guide to liability limits explains how to read and choose them.
When deciding, think about your health insurance deductible, whether you have disability coverage for lost income, and who usually rides with you. Declining UM to save a little can leave a large hole if the driver who hits you can’t pay.
To see roughly how adding or raising UM coverage affects your premium, try the cost calculator, then check a full coverage rate at the rate check.
Frequently asked questions
Does uninsured motorist coverage apply if I’m hit while walking?
In many states, yes. Uninsured motorist bodily injury often follows you as a person, so it can apply if an uninsured driver hits you as a pedestrian or cyclist. Rules differ by state and by policy wording, so check your policy or ask your insurer how it handles injuries outside your car.
Will filing an uninsured motorist claim raise my rates?
Because the other driver was at fault, many insurers don’t treat an uninsured motorist claim the same way as an at-fault crash, and some states limit surcharges for not-at-fault claims. Practices still vary by insurer and state, so ask your insurer how such a claim could affect your renewal price.
What should I do right after a crash with an uninsured driver?
Call the police so there is an official report, collect the other driver’s name, plate and any insurance details, take photos and get witness contacts. Then notify your insurer quickly. Many policies set deadlines for reporting uninsured motorist and hit-and-run claims, and a police report is often required.