Driving can be hazardous — specially because 1 in 8 drivers is uninsured. If you get into an accident with an uninsured driver, you might wonder who foots the medical bills and car animate costs. fortunately, uninsured/underinsured motorist policy can help .

What is uninsured motorist coverage?

When you ‘re in an accident caused by person who does n’t have policy, uninsured motorist coverage pays for your fiscal losses. There are two types of UIM :

  • Uninsured motorist coverage for bodily injury covers your own medical bills following a car accident with an uninsured driver. It’s similar to liability bodily injury
  • Uninsured motorist coverage for property damage pays to repair your own car if you’re in an accident with someone who’s not insured. It’s similar to liability property damage

The following is covered by uninsured/underinsured motorist insurance :

  • Uninsured/underinsured motorist bodily injury (UIM BI)
  • Hospital bills or medical care expenses
  • Lost wages because you’ve been unable to work due to your injury
  • Replacement services, such as house cleaning and babysitting, that you’re unable to perform because of injuries from the accident
  • Uninsured/underinsured motorist property damage (UIM PD)
  • Damage to your vehicle
  • Damage to your home

UIM limits are normally written in three parts ; for example : $ 25,000/ $ 50,000/ $ 25,000. The inaugural number represents the amount an insurance company will pay for each person if an uninsured driver hits your cable car. The insurance company pays up to $ 50,000 for all injuries associated with the accident ( the second number ) and up to $ 25,000 for any place damage ( the third base number ).

at-fault Let ‘s say your medical bills total $ 20,000 following a car accident. normally, you would file a claim against thedriver ‘s bodily injury liability coverage. But because the other driver is uninsured, you would tap into your uninsured motorist insurance. so long as your limits are at least $ 20,000, you should be able to recoup all losses. You can besides look into a collision deductible release, which will cover your deductible if your fomite is damaged in an accident and the driver at fault is uninsured .

Where is uninsured/underinsured motorist coverage required?

There are 20 states that require UIM. The bodily injury version of the coverage is typically mandate. In a few states, you are required to carry UIM property price, while in some states the coverage is not even offered. The table below lists states that make UIM mandate :


UMBI requirements

Connecticut 25,000/50,000
D.C. 25,000/50,000
Illinois* 25,000/50,000
Kansas 25,000/50,000
Kentucky 10,000
maine 50,000/100,000
maryland 30,000/60,000
Massachusetts 20,000/40,000
minnesota 25,000/50,000
missouri 25,000/50,000
nebraska 25,000/50,000
New Hampshire 25,000/50,000

Show All Rows Limits for UIM broadly follow the state of matter ‘s minimal limits for bodily injury and property damage liability coverage. We recommend drivers get more than the state minimum in many cases .

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How much does uninsured/underinsured motorist insurance cost?

UIM is much cheaper than standard bodily injury and property wrong insurance. Based on sample quotes for a 34-year-old married homo, premiums for a $ 25,000/ $ 50,000 policy compass from $33–$76 per year. For a policy with four times the coverage — limits of $ 100,000/ $ 300,000 — the premium only cost between $86–$134 per class .
UIM is significantly cheaper than the price of indebtedness coverage, but prices fluctuate between states. That ‘s because some states have a higher percentage of uninsured drivers, which means there ‘s a greater opportunity you ‘ll use UIM coverage .
rates in Massachusetts The price of a policy depends largely on the number of uninsured drivers in your state of matter. For model, are normally cheap because Massachusetts has the lowest share of uninsured drivers. A express like Oklahoma, on the other hand, is more costly because it has the highest percentage of uninsured drivers. The prices below reflect quotes from Geico.

department of state


UMBI premium

UIMBI premium

Massachusetts 25,000/50,000 $11 $2
50,000/100,000 $14 $12
100,000/30,0000 $15 $25
Oklahoma* 25,000/50,000 $41 $41
50,000/100,000 $57 $57
100,000/30,0000 $81 $81

*Presented uninsured and underinsured motorist policy as one premium, so divided in two to show price for each

Is uninsured motorist insurance worth it?

The average hospital charge following a cable car accident is around $ 60,000. In most cases, UIM coverage is worth carrying — it wo n’t cost much to get a policy that covers this type of charge .
If your limit is $ 25,000, then a car accident with an uninsured driver pays for less than half of the costs, leaving you on the hook for the rest. When setting your insurance limits, you should consider your net worth. That ‘s the value of all of your assets, such as home fairness, after subtracting your liabilities, such as scholar loanword debt. So if your net worth is $ 50,000, then your UIM limits should be at least $ 50,000. fortunately, there ‘s not much of a price remainder between low and high coverage limits .
You should alone consider not carrying UIM policy if you live in a no-fault submit like Florida or Michigan, where personal injury auspices ( PIP ) is mandate. PIP pays for your injuries, careless if the other driver is insured .
additionally, if you have comprehensive and collision policy, any car damage will be covered, regardless if the early driver is insured. Both coverages, however, will make your car insurance policy more expensive .

When should you have uninsured motorist insurance ?

When do you not need uninsured motorist insurance

When required by your department of state When not required by your state and…
When you do not have PIP You have PIP or MedPay on policy and…
When you do not have collision or comprehensive coverage You have comprehensive and collision insurance

If the right side of the mesa does not match your stream car policy, you should powerfully consider getting UIM. For many people, however, getting PIP and collision and comprehensive policy on the same policy may be besides expensive. As we discuss in the adjacent section, UIM may be the more feasible and low-cost choice .

What is stacking?

Stacking allows you to combine uninsured/underinsured coverage limits, which increases your protection. Depending on state jurisprudence, you may be able to stack coverage on multiple vehicles within the like policy, or stack coverage across multiple policies .
hera ‘s how stack on the same policy works .
Let ‘s say your car policy policy covers two cars. You have uninsured motorist bodily wound coverage limits of $ 20,000 on each car. Stacking your coverage within that policy increases your limits to $ 40,000 per accident. so if you ‘re injured in a car accident with person who ‘s not insured, your insurance will help pay aesculapian expenses up to $ 40,000 .
In some states, you can stack UM/UIM coverage limits across multiple cable car indemnity policies .
Let ‘s say you have a cable car indemnity policy for your own car, with a UMBI restrict of $ 25,000. Your aunt lives with you and lists your identify on her car policy policy. Her coverage terminus ad quem is $ 35,000. Stacking coverage across both policies would increase your UMBI coverage restrict to $ 60,000. If you ‘re hit by an uninsured driver, your insurance company would help cover medical bills up to $ 60,000 .
And in some states, you may file a claim against multiple policies if you ‘re injured as a passenger or pedestrian. thus if you ‘re a passenger in a car that ‘s hit by an uninsured driver, for case, you ‘re covered under two policies : your car indemnity policy and your driver ‘s policy.

How do I file an uninsured/underinsured motorist claim

Filing a claim for UM and UIM can sometimes be crafty. Since your insurance company is basically taking the place of the early driver ‘s insurance company, you may have to prove your sheath. Your insurance company may besides only pay when the other driver is largely creditworthy for your injuries — which may require a woo judgment to determine the extent of demerit. Your claim payout may besides be governed by your state ‘s negligence law .
You can help your case by preparing this information:

  • A full written description of what happened
  • Photos of the scene and any injuries you sustain
  • Records of medical examinations and any bills from doctors and health care providers
  • Receipts of all related expenses
  • Proof of lost wages, if your injuries cause you to miss work and potential income

After making a claim, remember that:

  • You should hear back within a time frame set by your state and insurer. Expect updates on any delays.
  • Be prepared to discuss the incident. A liability claims adjuster may have questions about your injuries and the cost of the claim.
  • You might have to move through the claims process and reach a payout agreement within a set time frame. You can either accept the offer or file a lawsuit if you disagree.
  • Your insurer will ask you to waive all future rights to pursue the person and company for further payments after settlement. You should ask an attorney to review the settlement and release, only signing it if you’re ready.
  • Know your rights. If your state allows stacking, then you may ask for a higher payout in some cases.

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