Roughly one driver in seven on American roads has no auto insurance, and about one in three is either uninsured or carrying too little. Uninsured motorist coverage is the part of your own policy that steps in when the person who hit you cannot pay. This page explains what it covers, what it quietly does not, what it costs, and exactly what to do in the messy real-life situations nobody explains until after the crash: the hit-and-run in a parking lot, the at-fault driver with a $25,000 limit, the rideshare ride, the passenger, the cyclist.
Key Takeaways, Answered Fast
The questions people actually type after a crash, with the short answer first. The sections below add the detail and the exceptions.
How the Coverage Actually Works
Uninsured motorist coverage is “first-party” coverage. That means you claim against your own insurer, not the other driver’s. It is a promise written into your policy: if someone who is legally at fault cannot pay for the harm they caused you, your insurer pays up to the limits you chose. The Insurance Research Council describes it as paying accident victims for injuries or damage caused by uninsured or hit-and-run drivers, with underinsured coverage picking up costs that exceed the at-fault driver’s limits.
The practical consequence is that your insurer is now on the other side of the table from you in a way it is not in a collision claim. It still owes you good faith, but it will ask you to prove the other driver was at fault, prove your injuries, and prove the damages. That is why documentation matters more here than people expect.
The four labels you will see on a declarations page
Insurers split this coverage into pieces. In most states these are bought separately, and a few states offer a combined single limit that uses one pool of money for either injuries or property damage.
| Label | Pays for | Typical trigger | Watch out for |
|---|---|---|---|
| UMBI | Your medical bills, lost income, pain and suffering | At-fault driver has no insurance, or hit and ran | Contact and police-report rules for hit-and-run |
| UIMBI | The gap above the at-fault driver’s liability limit | Their limit is lower than your losses | States define “underinsured” differently |
| UMPD | Repair or replacement of your vehicle and some property | Uninsured driver damages your car | Deductibles (for example $250 in Texas, $200 in D.C.) and low limits |
| UIMPD | Vehicle damage above the other driver’s property limit | Their property limit falls short | Not offered everywhere |
States use different tests to decide when UIM applies. Some compare the at-fault driver’s limit to your UIM limit. Others compare it to your actual damages. A third approach reduces your UIM payment by whatever the other driver’s insurer already paid. Two people with identical losses can receive different amounts for that reason alone. Read the “limit of liability” and “other insurance” wording on your own policy, or ask your agent which test applies.
Where the Risk Is Highest
The Insurance Research Council estimated that 15.4 percent of U.S. drivers were uninsured in 2023, up from 12.4 percent in 2017. The number does not come from a registry of cars. It is inferred from the ratio of uninsured motorist claims to bodily injury claims, which is a useful reminder that these are estimates, not a head count.
Added to the 18 percent estimated to be underinsured in that same study, roughly 33.4 percent of drivers fall into one of the two groups. The Insurance Information Institute notes that more than half of states have passed laws to build online insurance verification systems to catch uninsured drivers, so enforcement is changing. The rate has not fallen back to its pre-2020 level, though.
State by state: the extremes
| Next tier of high-rate states | 2023 uninsured rate | Reading it |
|---|---|---|
| Missouri | 20.7% | Among the largest increases since 2017 |
| Florida | 20.6% | Requires PIP and property damage liability, but not third-party bodily injury |
| California | 20.4% | Minimum liability is 15/30/5 |
| Colorado | 19.7% | Also the highest underinsured rate in the IRC study, 49.7% |
| Washington | 19.1% | Largest rise from 2020 to 2023 |
One quirk worth understanding: the uninsured rate and the underinsured rate move independently. Colorado’s 49.7 percent underinsured figure sits beside a 19.7 percent uninsured rate, while the District of Columbia’s underinsured rate is only 4.6 percent even though its uninsured rate is 23.1 percent. In plain terms, a state can look “safer” because most drivers carry a policy and still leave you exposed because those policies are thin. The IRC’s president said the rise in underinsured rates “points to higher UIM premiums in the future.”
A second quirk is the one nobody wants to learn at the scene: your own risk is not the state average. A rural commute and a downtown commute in the same state carry different odds. The state number tells you the floor, not your exposure.
What It Costs, and Why the Numbers Disagree
Here is a problem we ran into while checking prices: there is no fresh, official national average for this coverage. The Insurance Research Council last published a per-vehicle figure of about $78 a year, using 2016 data, and its newer study did not update it. Consumer-finance writers fill the gap with their own estimates. One widely repeated figure puts $100,000/$300,000 uninsured motorist limits near $25 a month. Those two numbers are not contradictory. They describe different years, different limits and different methods, and $78 a year works out to roughly $6.50 a month, versus about $300 a year at $25 a month.
Treat both as ballparks, then get a real quote. Three things move your price more than anything else: the limit you pick, whether you add the property damage piece, and your state’s uninsured rate, since insurers price UM partly on how often it gets used.
The cheapest dollars in your policy
Compare it to the rest of the bill. Raising UM limits usually costs a small fraction of what your liability coverage costs, because the insurer is pricing a narrower risk. That makes it one of the few places where moving from the state minimum to a higher tier adds a modest amount of premium while raising the maximum payout several times over.
We found that the most useful way to think about it is not “premium versus premium” but “premium versus the single worst bill you could face.” A policy limited to $25,000 per person is a policy that stops paying once a hospital stay crosses that line.
If an uninsured driver hits your car and you carry collision, collision can be the faster route to a repair because it does not depend on proving who was at fault. UMPD, where it exists, is often cheaper to use because its deductible tends to be small. Texas sets one at $250, and the District of Columbia sets $200 with a $5,000 limit. Whether you should carry UMPD in addition to collision depends on your state, your deductible and how old the car is. Ask your agent to compare the deductibles side by side before you decide.
Real Situations Nobody Warns You About
The explanations insurers publish tend to stay abstract. These are the specific moments where people get stuck, with what generally applies and the wording to check in your own policy.
This is the most common version, and the most misunderstood. Damage to a parked car is a property damage claim. UMPD may cover it where your state offers it, but collision is often the practical route. If the driver left no note and nobody saw anything, an insurer may question whether the damage happened the way you say. File a police report anyway, photograph everything, and check parking-lot cameras or ask nearby businesses before footage is overwritten.
These are called phantom vehicle claims. In Texas, for example, the statute says the unidentified vehicle must have made physical contact with you or your vehicle. Other states handle it differently, and some accept independent witness testimony in place of contact. The lesson is the same everywhere: if you can, get a witness’s name and number before they leave. An independent witness is the difference between a claim that moves and one that stalls.
Do call. A police report is required for nearly every uninsured motorist claim, and an unreported crash is easy for an insurer to dispute later. Take a photo of the driver’s license, the plate and the car. Do not accept cash on the spot as full settlement. Injuries can show up days later, and accepting payment can complicate a later claim.
This is where underinsured coverage matters. If the at-fault driver carries a $25,000 per-person limit and your injuries run well beyond it, their insurer will pay up to that limit, and your UIM coverage may cover part of the rest. Many policies require you to get your own insurer’s approval before accepting the other driver’s limits, because settling without it can put your UIM claim at risk. Tell your insurer before you sign a release.
Passengers are generally covered under the policy of the vehicle they were riding in, and some may also be able to use their own policy if the vehicle’s limits are exhausted. The details depend on the state and the policy wording. If you were in a friend’s car, ask whether the driver carried UM, and look at your own policy as a possible second source.
Many policies extend UM and UIM coverage to you personally, not only while you are in your car, which can include being struck as a pedestrian or a cyclist. Check the definition of “insured” in your policy. If it says “you and family members,” you may have protection that applies anywhere.
Rideshare companies publish their own insurance summaries, and the uninsured and underinsured amounts vary by state and by trip status (waiting, en route, on a trip). Read the company’s current insurance page for your state rather than relying on a general rule. For rentals, check whether your personal policy extends to the rental and whether the rental agreement offers its own protection. The answer is not the same across companies or states.
Where UM is optional, insurers generally have to offer it, and you can decline in writing. That signature can remain in force across renewals. If you do not remember what you chose, read the declarations page and ask the agent to confirm in writing. If you want the coverage, request it now. It will not apply to a crash that has already happened.
Payers who cover your treatment can seek reimbursement from any settlement, which is why your net recovery can be smaller than the headline number. Keep every explanation of benefits, and ask the claims adjuster and, if you hire one, an attorney how reimbursement claims will be handled before you agree to a figure.
The Insurance Information Institute’s table lists 16 states that require personal injury protection (PIP): Arkansas, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania and Utah. PIP pays certain medical costs regardless of fault, and Florida’s pays up to $10,000 even when the other driver is uninsured. UM/UIM then sits on top for what PIP does not cover. In PIP states, check how your UM limit interacts with the PIP benefits you already received.
After a Crash With an Uninsured or Unknown Driver
The order matters. The first hour decides how strong your claim is, and the first weeks decide whether the deadlines work for you.
- Check for injuries and call 911 if anyone needs medical help. Your health comes before the claim. Get checked even if you feel fine, since some injuries appear later.
- Move vehicles out of traffic if it is safe, then photograph the scene before it changes.
- Get the other driver’s details and plate number right away. If they drive off, write down the plate, the make, the color, the direction of travel and any distinguishing damage.
- Make sure police file a report and get the report number. It is required for nearly every uninsured motorist claim.
- Collect witnesses. Names and phone numbers matter most in hit-and-run and phantom vehicle cases.
- Notify your insurer promptly. Late notice is one of the most common reasons these claims run into trouble, so do it the same day if you can.
- Keep every record: medical bills, missed work, repair estimates, receipts, and a short daily note about symptoms.
- Hold off on quick settlement offers and on recorded statements until you understand your injuries and your policy.
First, the state’s statute of limitations. In Texas, for example, a personal injury claim has a two-year deadline, while a breach-of-contract claim against your own insurer generally has four years, though that depends on when the insurer violated the policy. Second, your policy may have its own notice and suit-filing conditions. Deadlines differ by state, so confirm yours with your state insurance department or an attorney early, not at the end.
It does not have to. Filing an uninsured motorist claim does not necessarily increase your rate, particularly if you were not at fault, and some states bar accident surcharges for not-at-fault claims. Disputed fault or a pattern of claims can change the picture, so ask your carrier how it treats not-at-fault claims in your state.
Choosing Limits Without Guessing
Experts quoted by AAA suggest matching your UM and UIM limits to your liability limits. Many policies default to state minimums, often described as 25/50/25, which means $25,000 per person for injuries, $50,000 per accident for injuries and $25,000 for property. A serious crash can exhaust those amounts quickly, especially if several people are hurt. Limits such as 100/300/100 are commonly recommended instead. Minimums vary by state: California’s is 15/30/5, for example, while Maine and Alaska require 50/100/25.
In our fact-check, the most useful rule of thumb that held up across sources was the matching rule. It avoids a strange outcome where you protect other people at a high limit and yourself at a low one.
| Your situation | Limit to consider | Why |
|---|---|---|
| Few assets, short commute | At least match your liability limits | Keeps a single serious injury from outrunning the policy |
| Family with dependents | 100/300 or higher, with UMPD where available | Several people can be hurt at once, and the per-accident cap matters |
| Own a home, high income | Match liability and ask about an umbrella that includes UM/UIM | Lost income and long recoveries drive large claims |
| Older car, low value | Injury limits first; compare UMPD with collision | Injuries are the larger risk than the car |
Stacking, in plain words
Where state law allows it, stacking lets you combine UM/UIM limits across multiple vehicles on your policy, so two cars with $50,000 each could present up to $100,000 of coverage. Many states restrict or ban it, and policies may waive it in exchange for a lower premium. If you insure more than one vehicle, ask whether stacking is allowed, whether it is on, and what you saved by turning it off.
Do I have UM and UIM, and what are the limits for injuries and for property? Is stacking available and is it on? Is my UMPD deductible separate from my collision deductible? What does my policy require to qualify a hit-and-run claim? What is the notice deadline in my policy?
Myths That Cost People Money
These are the assumptions we see repeated most often, along with what the sources actually support.
Health insurance pays medical bills, usually after deductibles and copays, and often seeks repayment from any recovery. It does not replace lost wages, and it does not compensate for pain and suffering. UM coverage can address those pieces, and it can also help with out-of-pocket costs your health plan leaves behind. An average single-coverage employer health plan deductible is over $1,700, according to the Kaiser Family Foundation survey cited by MoneyGeek, so the first bills alone can land on you.
The law requiring liability coverage exists in 49 states and D.C., and New Hampshire relies on financial responsibility rules instead. Yet the IRC still estimates about one driver in seven is uninsured. A requirement is not the same as compliance, and enforcement tools like online verification are still spreading.
The insurer pays up to the policy limit, not up to your loss. With about 18 percent of drivers underinsured, a large share of at-fault drivers can only pay a fraction of a serious injury claim. That is the pattern UIM coverage exists for.
Your insurer owes you good faith, yet in a UM claim it is also the party paying. Expect it to verify fault, injuries and costs. Provide records promptly, answer questions accurately, and keep copies of everything you send. If a dispute develops, many policies use arbitration or litigation procedures, and a licensed attorney can explain what applies to you.
You can sue an uninsured driver, and a judgment is real. Collecting is the problem. An uninsured driver often has little in assets, and a judgment can be discharged in bankruptcy. Suing is sometimes worth it when the driver has wages or property, but it is a slow back-up plan, not a substitute for coverage.
More Situations That Trip People Up
Requirements, minimums and the UM rules in your policy follow the state where the policy is written. After a move, call your insurer, update the address and ask for a fresh review. A policy that matched your old state’s defaults may be thinner than you expect in the new one.
Adding a driver does not usually change UM limits automatically, but it is a natural moment to revisit them. A household with more drivers has more people exposed to injury on the road, and the cost of raising UM is small compared with the added liability premium.
Coverage usually follows the vehicle for passengers and permitted drivers, and it follows you personally in some policies. If you regularly drive a car that is not insured by you, check your own policy’s wording and the owner’s policy, since limits and definitions can differ.
Riders face more serious injuries in crashes, so the injury side of UM matters more, not less. Policies for motorcycles are written separately and the details vary. Ask for the bodily injury limits specifically, and confirm what the policy says about hit-and-run events.
A first offer is a starting point. Before accepting, get your treatment complete or at least stable, collect your bills and wage records, and compare the offer to the policy limit and to your documented losses. If you are unsure how your state treats pain and suffering or future medical needs, a licensed attorney or your state insurance department can explain the process.
A record-keeping checklist that works
The symptom journal is the item people skip and later wish they had. A few lines a day about pain, sleep and what you could not do gives a claim a human shape that medical codes do not. Keep it factual and consistent with your medical records.
If you call anyone about the claim, write down the date, the person’s name and what was said. If you receive something in writing, keep it. It sounds tedious, and it is, but it is also the thing that turns a he-said-she-said into a clear timeline.
A Practical Order of Operations
If you read nothing else, do these in order. Look at your declarations page and find the UM and UIM lines. Compare those limits to your liability limits. If they are lower, ask for a quote to match them. Ask whether UMPD is available and how its deductible compares with your collision deductible. Ask whether stacking is allowed and whether you have it. Confirm in writing what you chose and when.
Then write the claim steps on a note in your glovebox or phone: call 911 if anyone is hurt, photograph the scene and the plate, get the police report number, collect witnesses, and call your insurer the same day. None of this is complicated. The reason it matters is that a stressful moment is the worst time to improvise.
Fact-Check Notes: Where Sources Disagree
We built this page by comparing the Insurance Research Council’s 2025 release, the Insurance Information Institute’s uninsured motorist statistics, the National Association of Insurance Commissioners’ consumer page, and state statutes cited by practitioners. Where they conflicted, we have said so rather than picking one quietly.
We found two answers inside one source. The Insurance Information Institute’s text says 20 states and D.C. require it, while its own financial-responsibility table lists UM and/or UIM as required in 18 states plus D.C. MoneyGeek reports 20 plus D.C. The differences likely come from how “required” is defined, since some states require insurers to offer coverage that you can then reject in writing. We therefore say “about 20” and urge you to check your state’s department of insurance.
The NAIC’s page shows 15.4 percent in the body, citing the IRC for 2023, but its meta description shows 12.6 percent. The body figure matches the IRC release and the Insurance Information Institute, so we use 15.4 percent.
The IRC release says the rate rose “3%” over the study period without saying which. Using the published series, 12.4 percent in 2017 to 15.4 percent in 2023 is 3.0 percentage points, or about 24 percent in relative terms. We use percentage points.
We did not find a current, official national average premium for UM coverage, and the claim-deadline rules are state specific. The page therefore uses the $78 and $25 ranges as labeled estimates and uses Texas as a worked example for hit-and-run contact and filing deadlines, not as a rule for every state.
Where to look next
Key sources: Insurance Research Council (uninsured and underinsured motorists study); Insurance Information Institute; National Association of Insurance Commissioners; state statutes as cited.
This page is general information, not legal or insurance advice. Coverage, requirements and deadlines depend on your state and your policy. Confirm details with your insurer, your state department of insurance, or a licensed attorney.