Why you dont need uninsured motorist coverage

With the exception of New Hampshire, every state in the U.S. has a minimum mandatory car insurance requirement. Despite that, about one out of every eight drivers does not carry auto coverage; in some states, that number is one out of five.

If you’re involved in a serious accident with a motorist who doesn't have an auto insurance policy, you could be at risk for substantial financial losses. Uninsured and underinsured motorist coverage is designed to protect against that possibility.

A handful of states require that uninsured coverage be included in all auto policies. Whatever the laws in your state, it's a good idea. Check your policy or ask your insurance professional to make sure you're covered if the other guy isn't.

Make sure you're insured

Don't go without at least a basic auto insurance policy. Even if you feel it's tough to afford it, in the long run it's for your own financial protection.

To help ensure that everyone, regardless of financial circumstances, can obtain car insurance, some states have programs to assist lower-income drivers. Check with the insurance division in your state to see if they offer such a program. Shop around and learn how you can reduce your car insurance costs and look for insurers that specialize in writing policies for lower-income consumers.

Uninsured motorist coverage

Specific options for uninsured motorist coverage vary by state and insurer, but in general there are three types of protection:

• Uninsured Motorist (UM) insurance – Also known as Uninsured Motorist Bodily Injury (UMBI) insurance, this coverage will pay your and your passengers’ medical bills if you’re involved in an accident with an uninsured motorist who is at fault. In addition, UM insurance will reimburse you and your passengers for lost wages. UM coverage also kicks in if, as a pedestrian, you are hit by an uninsured driver, or if you’re the victim of a hit-and-run accident.

• Uninsured Motorist Property Damage (UMPD) coverage – Uninsured motorist insurance covers bodily injuries but not damage to your car or property. For this, you need UMPD coverage, which, in addition to paying for damages to your vehicle caused by an uninsured driver, generally also covers damage to other personal property such as your house or your fence. Ask your insurance professional or state insurance department whether UMPD coverage is available in your state.

• Underinsured Motorist (UIM) protection – In some instances, an at-fault driver may have liability insurance, but his or her policy’s limits do not cover the full extent of damage to your vehicle. In such cases, UIM insurance will cover the shortfall.

Next steps: Protect yourself from unhinged drivers, too—prevent road rage incidents. 

Uninsured motorist insurance spares you from shelling out your own money for injuries or property damage from crashes you didn’t cause. In some states this coverage is required, but you can get it in others as well. Generally, it doesn’t cost much to add to your auto policy.

Here's what to know about uninsured motorist coverage.

An uninsured motorist is a person without liability car insurance. When you’re in an accident and the other driver is at fault, their insurance is supposed to pay for your car repairs and medical costs for you and your passengers. If the other driver doesn’t have insurance and can’t pay, you can wind up holding the bill.

Uninsured motorist coverage is designed to fill the gap between your costs and the other driver’s ability to pay.

Uninsured motorist coverage is often sold with underinsured motorist coverage. They both pay for the same expenses after an accident, with one key difference: Uninsured motorist coverage pays out after a crash with an at-fault driver who has no insurance, while underinsured motorist coverage is reserved for accidents with an at-fault driver who has some insurance, but not enough to cover all costs.

Learn more about underinsured motorist coverage.

Uninsured motorist coverage pays for injuries or damages that you, family members in your household or passengers in your car suffer after an accident with an at-fault driver who has no insurance.

There are two types of uninsured motorist coverage:

• Uninsured motorist bodily injury, or UMBI, pays for medical bills, pain and suffering, lost wages if you can’t work after an accident and funeral expenses after a crash with an at-fault driver who doesn’t have car insurance. It may also cover you if you’re hit as a pedestrian or while riding your bike.

If you're looking for protection beyond this, you may want to consider full coverage insurance. Although you can't buy a specific full coverage policy, this term often refers to a combination of coverage including comprehensive and collision insurance plus state-mandated coverage like liability insurance and uninsured and underinsured motorist coverage.

» MORE: The difference between comprehensive and collision coverage

Drivers in 18 states and Washington, D.C., are required to carry uninsured motorist coverage. Car insurance isn’t mandatory in New Hampshire or Virginia, but if drivers in either state purchase it, policies must include both uninsured motorist bodily injury and property damage. In other states, you may be required to reject the coverage in writing if you don’t want it.

Even if uninsured motorist coverage isn’t required where you live, you may still want the extra security it provides. Nearly 13% of drivers nationwide — or about 1 in 8 — drive uninsured, according to a 2019 study by the Insurance Research Council, the most recent data available.

Use the table below to see your state’s uninsured motorist coverage requirements.

» MORE: Car insurance quotes: What you need to know

Compared with other types of coverage in an auto policy, prices for uninsured motorist insurance are relatively low but could be higher in states with more uninsured drivers.

Since liability insurance is meant to protect your assets should you cause a wreck, you would want the same financial assurance if someone else caused the wreck. For that reason, it’s standard to purchase uninsured motorist coverage in at least the same amounts as your liability limits. The more assets you have to your name and the more liability insurance you purchase, the higher your costs for uninsured motorist coverage are likely to be.

Still, uninsured motorist insurance is cheaper than liability coverage when purchased in the same amounts — generally less than half the cost.

» MORE: The average cost of car insurance

Depending on your state and insurance company, you may have the option to “stack” your uninsured motorist coverage. For an extra cost, you can combine uninsured motorist bodily injury limits for multiple vehicles — either under one policy or across several policies in your name — to increase the overall coverage in an accident.

Say you own two cars insured under one policy, each with $50,000 of uninsured motorist bodily injury coverage. If you choose to stack the coverage, any injury expenses from an accident with an at-fault uninsured driver would be covered up to $100,000, the total stacked policy limit.

Frequently asked questions

Do you need uninsured motorist coverage if you have health insurance?

While your health insurance should pay for medical treatment after a wreck, uninsured motorist coverage could still be beneficial, as it can cover ongoing expenses like long-term care. Plus, there’s typically no deductible for UMBI coverage, which could offset a high health insurance deductible.

Does uninsured motorist coverage cover hit-and-runs?

Yes, some car insurers will use your uninsured motorist coverage to pay for injuries or damage expenses after a hit-and-run accident.

Is it worth getting uninsured motorist coverage?

You may be required to buy uninsured motorist coverage, depending on where you live — but even if you’re not, it’s worth considering. This type of insurance costs relatively little and could potentially save you tens of thousands of dollars if you’re hit by an uninsured driver.

Do you need uninsured motorist coverage if you have health insurance?

While your health insurance should pay for medical treatment after a wreck, uninsured motorist coverage could still be beneficial, as it can cover ongoing expenses like long-term care. Plus, there’s typically no deductible for UMBI coverage, which could offset a high health insurance deductible.

Does uninsured motorist coverage cover hit-and-runs?

Yes, some car insurers will use your uninsured motorist coverage to pay for injuries or damage expenses after a hit-and-run accident.

Is it worth getting uninsured motorist coverage?

You may be required to buy uninsured motorist coverage, depending on where you live — but even if you’re not, it’s worth considering. This type of insurance costs relatively little and could potentially save you tens of thousands of dollars if you’re hit by an uninsured driver.