You can be the safest driver on the road, but the truth is, not everyone you share it with carries proper insurance—or any at all. According to the Insurance Research Council, roughly 1 in 8 drivers in the U.S. is uninsured. In some states, that number climbs closer to 1 in 4.
That means every time you get behind the wheel, there’s a real chance that the person next to you, behind you, or coming toward you won’t be able to pay for damages if they cause an accident. And that’s where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage step in.
While these coverages are technically optional in many states, they’re among the most valuable add-ons you can buy. In a world where accidents are unpredictable and not everyone follows the law, uninsured motorist protection can make the difference between a minor setback and a financial disaster.
Here’s why it matters more than you think—and how to make sure you have enough of it.
The Harsh Reality: Millions of Drivers Have No Insurance
Every state except New Hampshire requires some form of auto insurance, yet uninsured drivers remain a nationwide problem.
The most recent estimates from the Insurance Research Council show that:
Mississippi, New Mexico, and Michigan have uninsured driver rates exceeding 25%.
Even in states with stricter enforcement, like New York and Massachusetts, rates still hover around 5–10%.
After major economic downturns, uninsured rates tend to rise even higher as people cut corners to save money.
What does this mean for you? If you’re in an accident caused by one of these uninsured drivers, your chances of getting fairly compensated through their insurance are zero—because they don’t have any.
What Uninsured and Underinsured Motorist Coverage Actually Does
Uninsured Motorist (UM) Coverage protects you and your passengers if you’re injured by a driver who has no liability insurance at all. It can pay for:
Medical expenses
Lost wages
Pain and suffering
Damage to your vehicle (if you have UM property damage coverage)
Underinsured Motorist (UIM) Coverage applies when the at-fault driver does have insurance—but their policy limits aren’t enough to cover your total damages. For example, if they have the state minimum of $25,000 in liability coverage and your hospital bills are $75,000, your UIM coverage can make up the $50,000 difference.
Together, UM and UIM ensure that you’re not financially punished for someone else’s irresponsibility.
Why Relying on the Other Driver Isn’t Enough
It’s easy to assume that if someone hits you, their insurance—or the courts—will take care of it. But in reality, recovering damages from an uninsured or underinsured driver can be extremely difficult.
Here’s why:
Most uninsured drivers don’t have significant assets to cover damages. Even if you sue, you may never collect.
Minimum liability limits in many states are shockingly low—as little as $15,000 per person for bodily injury. That can be used up in a single ambulance ride.
Insurance settlements take time. UM/UIM coverage allows your own insurer to pay your claim promptly while they pursue reimbursement from the at-fault driver later.
Without UM or UIM coverage, you could be left paying for your own injuries, vehicle repairs, and medical bills—even when the other driver was clearly at fault.
The Cost vs. Risk Equation
The good news is that uninsured motorist coverage is one of the most affordable protections you can buy. Adding UM and UIM coverage to your policy typically costs only $5–$15 per month, depending on your state and insurer.
That small cost can translate into tens or even hundreds of thousands of dollars in protection. Many insurers recommend matching your UM/UIM limits to your liability limits—so if your policy covers $100,000 per person for injuries you cause, your uninsured motorist coverage should match that amount to protect you equally.
For such a low premium increase, it’s one of the best returns on investment in the insurance world.
Real-World Scenarios Where UM/UIM Saves You
Scenario 1: The Hit-and-Run Driver
You’re rear-ended at a stoplight, but the other driver speeds off before you can get their information. If they can’t be identified, your UM coverage can step in as though they were uninsured, covering your medical expenses and vehicle damage.
Scenario 2: The Underinsured Driver
You’re T-boned by a driver who carries only their state’s minimum coverage of $25,000 per person. Your hospital stay and lost wages exceed $100,000. Their insurance pays its limit, and your UIM coverage fills the remaining $75,000 gap.
Scenario 3: The Pedestrian or Cyclist
UM coverage doesn’t just apply when you’re driving. If you’re walking, biking, or even riding as a passenger in someone else’s car and hit by an uninsured motorist, your coverage follows you and can pay for your injuries.
Why It’s Especially Important in Certain States
Some states have much higher percentages of uninsured drivers, making UM coverage practically essential.
Top states for uninsured drivers (2025 data estimates):
Mississippi – 29.4%
New Mexico – 28.2%
Tennessee – 24.6%
Florida – 23.7%
Michigan – 22.5%
If you live—or even frequently drive—in one of these states, your risk of encountering an uninsured motorist is far higher than average. Even in states where UM coverage is optional, insurers and consumer advocates strongly recommend carrying it.
State Laws on Uninsured Motorist Coverage
Each state handles UM and UIM coverage differently:
Mandatory Coverage: Some states (like Connecticut, Maryland, and New York) require all drivers to carry uninsured motorist protection.
Optional Coverage: Most states make it optional but require insurers to offer it to you in writing. You must sign a waiver if you choose to decline it.
Stacking Coverage: Certain states allow “stacking,” where you can combine UM/UIM limits across multiple vehicles on your policy for added protection.
If you’re unsure about your state’s rules, check your policy declarations page or contact your insurer to confirm your UM/UIM status.
The Hidden Gaps to Watch Out For
Even if you think you have coverage, a few common gaps can catch drivers off guard:
UM Property Damage Exclusion: Some policies include uninsured motorist bodily injury coverage but not property damage. You may need to add it separately.
Hit-and-Run Limitations: Certain states require physical contact with the other vehicle for UM coverage to apply. If the driver flees without hitting you, you might not be covered.
Deductibles: Some UM property damage claims come with higher deductibles than standard collision coverage.
Always review your policy carefully and ask your agent to clarify how your coverage applies to hit-and-run accidents, out-of-state travel, and underinsured claims.
How to Add or Increase UM/UIM Coverage
If you’re not sure whether you have uninsured motorist protection—or if your limits are too low—adding or increasing it is simple.
Step 1: Review your current declarations page (the summary of coverages and limits).
Step 2: Look for “Uninsured Motorist” or “UM/UIM” and note the amounts.
Step 3: Contact your insurer or agent and request higher limits—ideally matching your bodily injury liability coverage.
Step 4: Ask if “stacking” coverage is allowed in your state for even greater protection.
This quick policy review can dramatically increase your protection for just a few extra dollars per month.
When to File a UM or UIM Claim
If you’re in an accident caused by an uninsured or underinsured driver, file a claim as soon as possible—ideally within 24 hours. Provide your insurer with:
A police report (especially for hit-and-run incidents).
Details of the other driver’s insurance (if available).
Photos of the scene and any injuries.
Medical and repair estimates.
UM/UIM claims can sometimes take longer to process than standard ones because insurers must verify the other driver’s insurance status. Prompt reporting and documentation help speed things along.
The Bottom Line
Uninsured motorist coverage may be optional on paper, but in practice, it’s essential. It protects you from the all-too-common scenario of being hit by someone who can’t—or won’t—cover the costs of their mistake.
For a modest price, you gain peace of mind knowing that whether you’re hit by a reckless driver, a hit-and-run, or someone carrying bare minimum coverage, you’re still protected.
If you don’t currently have UM or UIM on your policy—or if your limits are outdated—call your insurer today and review your options. In a world where one in eight drivers is uninsured, having this coverage isn’t just smart insurance—it’s self-defense on the road.
