The Truth About Uninsured Motorist Coverage: Exploring Its Benefits and Importance

A National Highway Traffic Safety Administration report indicated that over 6 million auto accidents occurred in the US in 2021. That comes out to about 16,700 daily crashes involving at least property damage. The National Safety Council reports 46,980 deaths and 5.4 million medical-consulted injuries. Whatever the source, it seems clear that many people suffer the trauma of car accidents, often involving financial losses such as medical bills.

Typically, states require all drivers to have auto insurance or proof of financial capacity to cover damages in an accident. Victims can file a claim with an insurance company for their costs. However, one in eight drivers had no insurance in 2019, according to a 2021 report by the Insurance Research Council. The chances you will run into one of them today are highest in Mississippi (29.4 percent), Michigan (25.5 percent), and Tennessee (23.7 percent).

Your personal injury protection policy will pay for your losses if you are in one of 12 no-fault states. But if you are in fault states, you must submit an insurance claim with the at-fault driver’s insurer. The problem starts when the liable party is uninsured and is judgement-proof. Even if your car accident lawyer files and wins a personal injury lawsuit against the driver, they can’t pay because they don’t have money.

Hit-and-run drivers are also a possibility. The latest information shows nearly 700,000 hit-and-run incidents on average. The likelihood of becoming a victim of a hit-and-run is highest in Florida, New Mexico, and Louisiana. If you can’t find the driver, that leaves you in a tough situation with significant out-of-pocket expenses.

In these scenarios, you can avoid financial worries by tacking uninsured motorist coverage (UMC) to your car insurance policy. Most states do not require UMC, but it would be best to have it even if your state does not mandate it. Learn the truth about uninsured motorist coverage limits to make an informed decision.

Key Takeaways Uninsured motorist coverage (UMC) compensates negligent or hit-and-run car accident victims when the at-fault driver has no insurance or flees. UMC is a cost-effective way to get another layer of protection in case of an accident, but not all states require it. Motorists can get uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD) coverage.

How does UM coverage work?

Uninsured motorist insurance coverage (UMC) is automobile insurance that covers your financial losses in a car crash that is not your fault. You can file a claim when the at-fault driver has no car insurance coverage or flees the accident scene. It may also apply if the driver’s insurer denies full coverage or is no longer in business.

The insurer may offer UMC together with underinsured driver coverage. They both close the gap between your costs and the liable driver’s ability to pay and cover the same things. Underinsured motorist coverage only applies when the responsible party has coverage but not enough insurance to cover everything.

What does UMC cover?

UMC covers injuries you and your passengers sustain in a car crash triggered by an uninsured motorist. It also covers bodily injuries you sustained while riding a bike or walking on the street.

The insurance company typically expresses UMC as two numbers. For example, if the UMC is 100/300, it will cover $100,000 bodily injury (one person) and $300,000 bodily injury (per accident). 

Suppose four people were in your car, and you all sustained injuries. The UMC will cover up to $300,000 for the medical expenses of all four people. Any excess may be covered by health insurance. UMC will also cover pain and suffering and lost wages.

However, there are two types of UMC, one for property damage. Uninsured motorist property damage coverage (UMPD) is like uninsured motorist coverage bodily injury or UMBI. It will pay for damage to your car or property caused by an uninsured motorist. Insurers typically bundle UMBI and UMPD when they offer it to policyholders.

Some states may impose a deductible for UMPD, meaning you pay up to a specific amount, say $250. The insurance company covers the remaining bills up to the policy limit. It will pay for the following:

• Car repair or replacement in a total loss claim
• Rental car fees
• Loss of value of your repaired vehicle

Is uninsured motorist insurance necessary?

UMC is only necessary if your state mandates it. However, if your state makes it optional, consider the following scenarios to help you decide.

You have a high-deductible health plan

A UMBI covers medical payments when the liable party has no insurance or books it after an accident. Your health insurance might cover it instead, so a UMC may be superfluous.

However, if your health plan has a high deductible, a UMBI might be more cost-effective. You don’t need to pay co-insurance, co-pays, or deductibles with UMBI. Your health insurance doesn’t cover non-economic damages like pain and suffering or lost earnings. On average, the personal injury claim payment for UM is $32,879.

You have collision insurance

UMPD might not be necessary if you have collision insurance. It pays for any damage to your vehicle due to an accident, regardless of fault. UMPD will only pay for property damage caused by an uninsured driver.

Your state has a high rate of uninsured drivers

Suppose you live in Mississippi, a fault state with a high percentage of uninsured drivers in the US. Having UMC is probably a good idea. On the other hand, suppose you live in New Jersey, a no-fault state with the lowest percentage of uninsured drivers. A UMC is still a good idea, but there is a comparatively small chance you will need it.

The Benefits of Uninsured Motorist Policies

The most apparent benefit of UMC is having peace of mind. Whatever the circumstances in a car accident, you have recourse for bodily injuries and property damage. However, another benefit is it is not as expensive as other types of coverage, such as collision or comprehensive insurance.

In some states, adding UMC may add an extra $10 or so to your monthly bill. Moreover, the deductibles for UMPD tend to be less than collision insurance, so it makes sense to have UMC. However, you must ensure your UMC covers hit-and-runs since some plans do not.

How Much Uninsured Motorist Coverage To Get

States that require UMC mandate a minimum, typically matching your liability limits. For example, suppose your liability insurance has a limit of $50,000 for one person and $100,000 per accident for bodily injuries. In that case, you must have the same UMC limits.

You can increase your UMC limits beyond the minimum by increments of $5,000 for bodily injury and property damage. The recommended UMPD is enough to cover the value of your vehicle. Whether the state requires UMC or not, insurance companies must offer it. You can refuse it in writing in states that don’t require UMC.  

UMC Requirements by State

Twenty states, plus Washington, DC, require drivers to carry UMC with varying limits. You can refuse to include UMC in other states. But in Virginia, which does not require drivers to have car insurance, UMC is optional for those who purchase an auto insurance policy.

Alabama

Alabama does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required.

Alaska

Alaska does not require UMBI, but insurance companies must offer a minimum of 50/100 coverage. Motorists who do not choose to get it must reject it in writing. If they get UMPD, the minimum is $25,000. The deductible for UMPD is $250.

Arizona

Arizona does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing using a state form. UMPD is not required.

Arkansas

Arizona does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage and should include underinsured motorist coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required. If they get UMPD, the minimum is $25,000. The deductible for UMPD is $200.

California

California does not require UMBI, but insurance companies must offer a minimum of 15/30 coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required. But motorists with UMPD and collision coverage can only use their UMPD to cover the deductible for collision coverage up to $3,500.

Colorado

Colorado does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required, but motorists can request it. 

Connecticut

Connecticut requires UMBI and underinsured motorist coverage. The minimum is 25/50 for UMBI and $25,000 for uninsured motorist coverage. UMPD is not needed, but motorists can request it. 

Delaware

Delaware does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. However, if you get UMBI, it must include UMPD for a minimum coverage of $5,000. The deductible for UMPD is $250 unless otherwise provided in writing.

District of Columbia

The District of Columbia requires UMBI but not underinsured motorist coverage. Insurers must offer both, but the motorist can only reject underinsured motorist coverage in writing. The minimum is 25/50 for UMBI. The state also requires UMPD to pay a minimum of $5,000. The deductible for UMPD is $200.

Florida

Florida does not require UMBI, but insurance companies must offer a minimum of 10/20 coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required, but motorists can request it. 

Georgia

Georgia does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. The state requires UMPD with a minimum of $25,000. The deductible for UMPD is $250, $500, or $1,000, depending on the policy.

Hawaii

Hawaii does not require UMBI, but insurance companies must offer a minimum of 20/40 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Idaho

Idaho does not require UMBI, and insurance companies may choose not to offer it. The UMBI minimum is 25/50 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Illinois

Illinois requires UMBI with a minimum of 25/50. The insurance must also offer UMPD of $15,000 minimum if the motorist does not have collision insurance. Motorists who do not choose to get UMPD must reject it in writing. The deductible for UMPD is $250.

Indiana

Indiana does not require UMBI, but insurance companies must offer:

• a minimum of 25/50 UMBI coverage
• underinsured motor coverage of $50,000 minimum
• UMPD of $10,000

Motorists who do not choose to get UMC  must reject it in writing. The deductible for UMPD is a maximum of $300, waived if an accident happens while the vehicle is unoccupied or parked.  

Iowa

Iowa does not require UMBI, and insurance companies may choose not to offer it. The UMBI minimum is 20/40 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Kansas

Kansas requires UMBI with a minimum of 25/50. Motorists can reject UMBI over 25/50. The state does not require UMPD.

Kentucky

Kentucky does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage or $60,000 for both UMBI and UMPD. Motorists who do not choose to get it must reject it in writing. UMPD is not required. 

Louisiana

Louisiana does not require UMBI, and insurance companies may choose not to offer it. The UMBI minimum is 15/30 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD, but the deductible is $250 for those with one.

Maine

Maine requires UMBI with a minimum of 50/100. The state does not require UMPD.

Maryland

Maryland requires UMBI and underinsured motorists coverage with a minimum of 30/60 and a minimum UMPD of $15,000. The UMPD deductible ranges from $50 to $250 in $50 increments. 

Massachusetts

Massachusetts requires UMBI with a minimum of 20/40. The state does not require UMPD.

Michigan

Michigan does not require UMBI, and insurance companies may choose not to offer it. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Minnesota

Minnesota requires UMBI and underinsured motorists coverage with a minimum of 25/50. The state does not require UMPD.

Mississippi

Mississippi does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. UMPD is not required but a minimum of $25,000 when purchased. The UMPD deductible is $200.

Missouri

Missouri requires UMBI with a minimum of 25/50. The state does not require UMPD.

Montana

Montana does not require UMBI, and insurance companies may choose not to offer it. The minimum for UMBI, when purchased, is 25/50. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Nebraska

Nebraska requires UMBI and underinsured motorists coverage with a minimum of 25/50. The state does not require UMPD.

Nevada

Nevada does not require UMBI, and insurance companies may choose not to offer it. The minimum for UMBI, when purchased, is 25/50. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

New Hampshire

New Hampshire requires UMBI with a minimum of 25/50. Motorists can reject UMBI coverage in excess/umbrella policies only. The state also requires UMPD with a minimum limit of $25,000. There is no deductible.

New Jersey

New Jersey requires UMBI with a minimum of 15/30. The state also requires UMPD with a minimum coverage of $5,000.

New Mexico

New Mexico does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. The state requires UMPD with a minimum limit of $10,000 when purchased. The UMPD deductible is a maximum of $250.

New York

New York requires UMBI with a minimum of 25/50 for injuries and 50/100 for death. The state does not require UMPD.

North Carolina

North Carolina requires UMBI with a minimum of 30/60 and underinsured motorist coverage if the UMBI exceeds the minimum. The state also requires a minimum UMPD coverage of $25,000. The UMPD deductible is $100.

North Dakota

North Dakota requires UMBI with a minimum of 25/50. The state does not require UMPD.

Ohio

Ohio does not require UMBI, and insurance companies may choose not to offer it. The minimum for UMBI, when purchased, is 25/50. The state limits UMPD to $7,500. The UMPD deductible is $250.

Oklahoma

Oklahoma does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Oregon

Oregon requires UMBI with a minimum of 25/50 and underinsured motorist coverage if the UMBI exceeds the minimum. The state also requires a minimum UMPD coverage of $20,000. The UMPD deductible is $200, $300 for hit-and-run accidents.

Pennsylvania

Pennsylvania does not require UMBI, but insurance companies must offer a minimum of 15/30 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD.

Rhode Island

Rhode Island does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get it must reject it in writing. The state does not require UMPD, but the minimum is $25,000 when purchased. The UMPD deductible is $200.

South Carolina

South Carolina requires UMBI with a minimum of 25/50. Motorists can reject underinsured motorist coverage in writing. The state also requires a minimum UMPD coverage of $25,000. The UMPD deductible is $200.

South Dakota

South Dakota requires UMBI with a minimum of 25/50 coverage. The state does not require UMPD.

Tennessee

Tennessee does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage or $60,000 for both UMBI and UMPD. Motorists who do not choose to get it must reject it in writing. The state requires UMPD with a minimum of $15,000 coverage. The UMPD deductible is $200.

Texas

Texas does not require UMBI, but insurance companies must offer a minimum of 30/60 coverage. Motorists who do not choose to get it must reject it in writing. The state requires UMPD with a minimum of $25,000 limit. The UMPD deductible is $250.

Utah

Utah does not require UMBI, but insurance companies must offer a minimum of 25/65 coverage and underinsured motorist coverage of 10/20. Motorists who do not choose to get either must reject them in writing. The state requires UMPD for motorists without collision insurance. The UMPD deductible is $250.

Vermont

Vermont requires UMBI with a minimum of 50/100 coverage. The state also requires UMPD with a minimum coverage of $10,000. The UMPD deductible is $150.

Virginia

Virginia does not require car insurance. However, if the motorist has a policy, it must include UMBI with a 30/60 minimum coverage and $20,000 in UMPD. The UMPD deductible is $200.

Washington

Washington does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get either must reject them in writing. The state also requires UMPD when a driver does not have collision insurance, a minimum of $10,000. The UMPD deductible is $100, $300 for hit-and-run accidents.

West Virginia

West Virginia requires UMBI with a minimum of 25/50 coverage. The state also requires UMPD with a minimum coverage of $10,000. The UMPD deductible is $300.

Wisconsin

Wisconsin requires UMBI with a minimum of 25/50 coverage. Motorists can reject underinsured motorist coverage. The state also requires UMPD with a minimum policy limit of $10,000. The state does not require UMPD.

Wyoming

Wyoming does not require UMBI, but insurance companies must offer a minimum of 25/50 coverage. Motorists who do not choose to get either must reject them in writing. The state does not require UMPD.

Did you know? The cost of uninsured motorist coverage is $136 a year on average. You can also “stack” your UMC limits across two or more vehicles for an extra fee in some states. The combined limits of each car cover injury expenses for accidents to any of your vehicles included in the stacked policy.

Going Beyond the Truth About Uninsured Motorist Coverage

Uninsured motorist coverage provides a cost-effective layer of financial protection to drivers in accidents. It ensures that victims of a negligent driver have recourse when the liable party has no insurance to pay for their losses.

However, not all motorists avail of the option. Filing a personal injury case against the liable driver may be necessary. In that case, the Personal Injury Center can help.

We can help you find an experienced car accident lawyer to handle your case. Filling out the free evaluation form with basic information takes just two minutes. It will help us match you with a competent attorney in your area.

Find alternatives for uninsured motorist coverage to compensate for injuries or property damage you sustained in an accident. Contact the Personal Injury Center today!

FAQs on the Truth About Uninsured Motorist Coverage