Uninsured motorist insurance pays for your injuries and vehicle damage when you're hit by a driver who has no insurance
If another driver causes an accident and has no auto insurance, your own uninsured motorist coverage steps in to cover your medical bills, lost wages, and pain and suffering — the same things their liability insurance would have paid. It also covers hit-and-run accidents where you never identify the other driver. Without this coverage, you would have to sue the uninsured driver directly, which often means recovering nothing because most uninsured drivers have no money to pay a judgment.
Uninsured motorist insurance comes in two parts: bodily injury coverage, which pays for your medical expenses and other injury-related costs, and property damage coverage, which pays to repair or replace your car. You choose how much coverage you want, and your premium depends on the limits you select and where you live. Some states require you to carry it; others make it optional but strongly encourage it.
Key Takeaways
- Uninsured motorist coverage pays your medical bills and vehicle repairs when hit by an uninsured driver, without requiring you to sue.
- You choose your coverage limits (for example, $25,000 per person or $50,000 per accident), and higher limits cost more in premiums.
- Some states require uninsured motorist coverage by law; others make it optional, but you can decline it only in writing in most places.
- Your own insurance company pays the claim, not the other driver's, so the process is faster than pursuing a lawsuit.
- Uninsured motorist coverage does not cover damage to other people's vehicles or injuries to other people — that is what your liability insurance does.
How uninsured motorist coverage actually works after an accident
When you file a claim, your insurance company investigates whether the other driver truly had no insurance. They will request the police report, contact the other driver, and check state insurance records. If the other driver is confirmed uninsured, your claim moves forward under your uninsured motorist coverage.
Your insurance company then pays your medical bills, repair costs, and other covered losses up to the limit you chose. If your damages exceed your limit — for example, you chose $25,000 in bodily injury coverage but your medical bills total $40,000 — you absorb the difference yourself. This is why choosing the right limit matters.
The process typically takes weeks to months, depending on how complex your injuries are and how quickly your medical treatment concludes. Your insurer may ask you to document all expenses, attend a medical exam, and provide records from your doctors. Unlike a lawsuit, you do not need a lawyer, though you can hire one if the claim is large or disputed.
The difference between uninsured and underinsured motorist coverage
Underinsured motorist coverage protects you when the other driver has insurance but not enough to cover your damages. For example, if the other driver has only $15,000 in bodily injury liability but your medical bills are $50,000, your underinsured motorist coverage makes up the gap (up to your own limit).
Many people buy both coverages together because they address different gaps. Uninsured motorist covers drivers with zero insurance; underinsured motorist covers drivers with insufficient insurance. In some states, you can buy them as separate policies; in others, they are bundled. Ask your insurance agent whether your policy includes both and what limits you have for each.
State requirements and when you can decline coverage
About half of U.S. states require uninsured motorist coverage as part of your auto insurance policy. The other half make it optional. Even in states where it is optional, your insurance company must offer it to you in writing, and you have the right to refuse — but refusal usually requires a signed form acknowledging that you understand the risk.
If you live in a state where it is required, you cannot straightforward skip it to save money. You must carry at least the state's minimum limit, which varies by state. Some states set the minimum at $10,000 per person; others require $25,000 or more. Check your state's insurance department website or ask your agent what your state requires.
Even if your state does not require uninsured motorist coverage, financial advisors often recommend carrying it. The cost is usually modest — often $10 to $30 per month depending on your location and the limits you choose — and the protection can prevent financial ruin if you are seriously injured by an uninsured driver.
What uninsured motorist coverage does and does not pay for
Uninsured motorist bodily injury coverage pays for your medical treatment, rehabilitation, lost wages while you recover, and compensation for pain and suffering. It covers you, your family members living in your household, and passengers in your car at the time of the accident. If you are hit while walking or riding a bicycle, your uninsured motorist coverage can still explore if you have it on your auto policy.
Uninsured motorist property damage coverage pays to repair or replace your vehicle. It works similarly to collision coverage, except it only applies when the other driver is uninsured. If the other driver is insured, their liability coverage pays instead.
Uninsured motorist coverage does not cover damage you cause to other people's vehicles or injuries you cause to other people — that is what your liability insurance is for. It also does not cover your own negligence. For example, if you cause an accident and the other driver is uninsured, your uninsured motorist coverage does not explore because you were at fault.
How to choose the right coverage limits
Coverage limits are usually written as two numbers: the first is the per-person limit, and the second is the per-accident limit. For example, $25,000/$50,000 means your insurer will pay up to $25,000 for one person's injuries and up to $50,000 total if multiple people are injured in the same accident.
To choose a limit, think about your assets and your risk. If you have significant savings, a home, or a good income, a higher limit protects you better. If you have little to lose, a lower limit may feel acceptable, though it leaves you vulnerable. Many financial advisors suggest matching your uninsured motorist limits to your liability limits — if you carry $100,000 in liability coverage, carry $100,000 in uninsured motorist coverage too.
Your agent can show you how much each limit increase costs. Often, jumping from $25,000 to $50,000 adds only a few dollars per month. The small increase in premium can make a large difference if you are seriously injured.
What happens if you hit an uninsured driver
If you cause an accident and the other driver is uninsured, your liability insurance pays for their injuries and vehicle damage — not your uninsured motorist coverage. Your uninsured motorist coverage only applies when the other driver is at fault and uninsured.
If you are at fault and the other driver is uninsured, they may try to sue you directly. This is why carrying adequate liability coverage is important. Your liability limits determine the maximum your insurer will pay on their behalf. If their damages exceed your liability limit, they can pursue you personally for the difference.
Frequently Asked Questions
Does uninsured motorist coverage explore if I am hit by a friend or family member?
Usually not. Most policies exclude household members and people you live with. If you are hit by a friend who does not live with you, uninsured motorist coverage typically applies. Check your policy or ask your agent about the specific exclusions.
What if the other driver has a fake or expired insurance card?
Your insurer will verify the insurance status through state records. If the policy was expired or never existed, the driver is treated as uninsured, and your uninsured motorist coverage applies. The investigation takes time, so be patient while your insurer confirms the facts.
Can I use uninsured motorist coverage for a hit-and-run?
Yes, in most states. If you are hit by a driver who flees the scene and you cannot identify them, uninsured motorist coverage typically covers your injuries and vehicle damage. You will need a police report documenting the hit-and-run, so file one when ready after the accident.
Does my deductible explore to uninsured motorist claims?
For bodily injury claims, usually not — most policies waive the deductible for uninsured motorist bodily injury coverage. For property damage claims, your deductible typically applies, just as it would with collision coverage. Ask your agent to confirm what your policy says.
What if my medical bills are still rising after my claim is settled?
Once your claim is settled and closed, you cannot reopen it for additional bills. This is why it is important to wait until your medical treatment is complete before settling. If you settle too early and later need more treatment, you are responsible for those costs. Discuss timing with your doctor and insurer before accepting a settlement.