Uninsured motorist insurance covers your medical bills and vehicle damage when another driver hits you and has no insurance

When an uninsured driver causes an accident, you cannot recover money from their insurance because they do not have any. Uninsured motorist (UM) coverage is the part of your own auto policy that steps in instead, paying for your injuries, lost wages, and vehicle repairs up to your policy limit. It works like a safety net when the other driver cannot pay.

This is different from collision coverage, which pays for damage to your car regardless of who caused the accident. UM coverage specifically addresses the gap left when the at-fault driver is uninsured. In most states, you can refuse UM coverage, but your insurance company must ask you to do so in writing — many states make it the default unless you actively decline it.

Key Takeaways

  • Uninsured motorist coverage pays your medical expenses and vehicle damage when hit by a driver with no insurance, up to the limit you choose.
  • Your own insurance company pays the claim, not the other driver, so you recover money even if the uninsured driver cannot be found or has no assets.
  • Most states require insurers to offer UM coverage, though you can decline it in writing if you choose to take that risk.
  • The coverage limit you select (such as $25,000 or $100,000 per person) determines the maximum your insurer will pay, so choosing too low leaves you exposed.

How uninsured motorist coverage actually works after an accident

After an accident with an uninsured driver, you report the claim to your own insurance company, not to the other driver's insurer (because there is none). You provide your insurer with the police report, witness statements, photos, and medical records. Your insurer then investigates whether the other driver was actually uninsured and whether they were at fault.

If your insurer confirms the other driver was uninsured and caused the accident, they pay your claim up to your UM limit. This covers medical treatment, hospital bills, rehabilitation, lost income while you recover, and pain and suffering. For vehicle damage, UM coverage typically pays for repairs or the car's actual cash value if it is totaled, minus your deductible.

The process usually takes several weeks. Your insurer may ask you to provide medical records, wage statements from your employer, and repair estimates. If your injuries are serious or the claim is large, your insurer may hire an adjuster to investigate more thoroughly.

The difference between uninsured and underinsured motorist coverage

Underinsured motorist (UIM) coverage handles a different problem: when the at-fault driver has insurance, but their policy limit is too low to cover your full damages. For example, if another driver causes $80,000 in injuries but their policy only covers $25,000, your UIM coverage bridges that gap up to your UIM limit.

Many insurers bundle UM and UIM into one policy, though you can sometimes buy them separately. Some states require both; others make them optional. The key difference is that UM applies when there is no insurance at all, while UIM applies when there is insurance but it is insufficient. Both protect you from being left short when the other driver cannot fully cover the damage they caused.

What uninsured motorist coverage does and does not pay for

UM coverage pays for medical expenses (doctor visits, emergency room, surgery, physical therapy), hospital stays, prescription medications, ambulance transport, and ongoing treatment related to the accident. It also covers lost wages if you cannot work during recovery, and pain and suffering damages in most states. For your vehicle, it covers repair costs or the actual cash value if the car is totaled.

UM coverage does not pay for damage to someone else's property (that is your liability coverage), rental car costs while yours is being repaired (that is rental reimbursement coverage), or injuries you cause to others (that is your bodily injury liability). It also does not cover accidents where you hit an uninsured driver and you are at fault — your own collision coverage handles that. UM coverage only applies when the other driver is at fault and uninsured.

Choosing your uninsured motorist coverage limit

When you buy auto insurance, you select a UM limit — typically $25,000, $50,000, $100,000, or higher per person and per accident. This is the maximum your insurer will pay for any single claim. If your medical bills and damages exceed your limit, you absorb the difference yourself.

Your UM limit should roughly match your bodily injury liability limit (the amount your insurance pays if you injure someone else). If you carry $100,000 in liability but only $25,000 in UM coverage, you are protecting others better than yourself. Many insurance agents recommend matching them or setting UM slightly higher, since you know your own medical costs better than you know what you might owe a stranger.

Higher limits cost more in premiums, but the difference is usually small — often $10 to $30 per year per $25,000 of coverage. The cost varies by your age, driving record, location, and insurer. In states with high rates of uninsured driving, the premium difference may be larger.

Uninsured motorist coverage requirements by state

About half of U.S. states require UM coverage as part of every auto policy, though you can decline it in writing. The other half make it optional. A few states (like New Hampshire and Virginia) do not require it at all, though they may require you to prove you can pay for damages if you cause an accident.

The minimum UM limit varies by state. Some states set it at $25,000 per person; others require $50,000 or more. Your state's insurance department website lists the specific requirements for your location. If you move to a different state, your coverage may need to change to comply with that state's rules.

Even in states where UM coverage is optional, most insurance companies make it the default on new policies. You have to actively request removal in writing. Some insurers require you to sign a form acknowledging that you understand the risks of driving without UM coverage.

When you might not have uninsured motorist coverage

You lack UM coverage if you declined it in writing when you bought your policy, or if your policy explicitly excludes it. You also may not have it if you let your insurance lapse — coverage only applies while your policy is active. Some policies exclude UM coverage for accidents involving family members living in your household or for accidents that occur while you are driving someone else's car.

If you are hit by an uninsured driver and you have no UM coverage, you would need to sue the other driver personally to recover damages. This is expensive, time-consuming, and often unsuccessful because uninsured drivers typically have few assets to collect from. This is why most insurance professionals recommend keeping UM coverage active.

Frequently Asked Questions

What counts as an uninsured driver?

An uninsured driver is someone with no active auto insurance policy at the time of the accident. This includes drivers whose policies lapsed, drivers who never bought insurance, and drivers who let their coverage expire. A driver with a policy that was cancelled for non-payment also counts as uninsured.

Can I use uninsured motorist coverage if the other driver is found and has insurance?

No. If the other driver has insurance, you file a claim with their insurer instead. UM coverage only applies when the other driver is confirmed to be uninsured. If their insurer denies the claim or their policy limit is too low, you would then use underinsured motorist coverage.

Does uninsured motorist coverage explore to hit-and-run accidents?

Yes, in most states. If a driver hits you and leaves the scene, and you cannot identify them, your UM coverage typically applies. You will need to file a police report and provide your insurer with as much information as possible about the other vehicle. Some states require you to carry uninsured motorist coverage specifically for this reason.

Will using uninsured motorist coverage raise my insurance rates?

Not typically. Since the accident was not your fault, using UM coverage should not increase your premiums. However, if you file multiple claims in a short period, your insurer may raise your rates or non-renew your policy. One UM claim for an accident that was not your fault usually has no impact on your rates.

What if the uninsured driver sues me after I file a UM claim?

Your insurance company handles the legal defense. When you file a UM claim, your insurer takes over the case and pays for any legal costs. The uninsured driver cannot recover from you because your insurer is now the one paying the claim. This is another reason UM coverage protects you beyond just medical bills.