Uninsured and Underinsured Motorist Coverage (UM/UIM) in 2025 [Coverage Explained]

Uninsured and underinsured motorist coverage (UM/UIM) is important because it protects you if you’re hit by a driver who doesn’t have enough insurance or none at all. Without this coverage, you might have to pay for medical bills, lost wages, and car repairs on your own. 

Finding the right policy means getting good coverage at a price that fits your budget. Some companies offer lower rates but may not include enough protection, while others charge more but provide better benefits.

Comparing providers helps you choose the best option for your needs. With uninsured and underinsured motorist coverage (UM/UIM), you can drive with confidence, knowing you’re covered no matter what happens on the road.

Read more: What is uninsured motorist property damage?

Stop overpaying for car insurance. Our free quote comparison tool allows you to shop for quotes from the top providers near you by entering your ZIP code.

Uninsured and Underinsured Motorist Coverage (UM/UIM) Explained 

Uninsured motorist insurance covers your accident expenses if the driver who hits you does not have liability auto insurance coverage. Liability auto insurance is required in most states and pays for damages when you cause an accident.

If the at-fault driver does not have the required insurance, uninsured motorist insurance will help pay for your costs. Simply put, uninsured in insurance means that the responsible driver does not have any liability coverage.

Additionally, uninsured motorist bodily injury coverage helps pay for medical expenses if you or your passengers are injured in an accident caused by an uninsured driver. Underinsured motorist insurance works similarly but applies when the at-fault driver has insurance, just not enough to cover all damages.

For example, if a driver causes $10,000 in damage to your car but their insurance only covers $5,000, underinsured motorist insurance will pay the remaining amount. If you’re wondering what UM stands for in insurance, it refers to Uninsured Motorist coverage, which protects you if you’re hit by a driver without insurance.

Meanwhile, the full form of UIM in car insurance is underinsured motorist coverage, which helps cover costs when the at-fault driver’s insurance is not enough to pay for all damages.

Variations of Uninsured/Underinsured Motorist Insurance 

There are different types of uninsured and underinsured motorist coverages, and each one helps in different situations. These include property damage insurance, which pays for car repairs, and bodily injury insurance, which covers medical bills if you’re hurt in an accident.

Property damage coverage helps pay for repairs to your vehicle if you’re hit by an uninsured or underinsured driver, while bodily injury coverage helps cover medical expenses. If you have UM/UIM to your umbrella coverage, it can provide additional protection beyond your standard auto policy, helping cover costs that exceed your regular limits.

In most cases, uninsured and underinsured motorist coverage for property damage and bodily injury is sold together, but some insurers may offer them separately. For example, uninsured motorist coverage from Progressive provides flexible options to meet different coverage needs.

However, there may be a reason why you may not need uninsured motorist coverage, such as if you already have other policies that provide similar protection or live in a state with strong no-fault insurance laws. Learn how to find cheap car insurance.

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Uninsured/Underinsured Motorist Insurance Requirements 

While you may be able to choose whether you get uninsured or underinsured motorist insurance, you may also have to purchase these coverages to drive legally. Read on to learn more about the limits of uninsured and underinsured policies, when you need to carry them, and when you should get them. 

Uninsured/Underinsured Motorist (UM/UIM) Coverage Limits 

When purchasing uninsured or underinsured insurance, you will likely see their limits expressed as numbers. There are usually two numbers for bodily injury coverage and one number for property damage coverage. For example, you may see 50/100/20 listed on the policy you buy for uninsured or underinsured motorist insurance. 

This means that insurance will cover up to $50,000 for injuries to one person and $100,000 total for all injuries. The last number usually refers to the property damage coverage, so 20 means insurance will cover up to $20,000 for property damage. If your accident costs exceed the limits of your insurance, you will have to pay the remainder out of pocket. 

Learn how to purchase the right car insurance quote online and find the best policy to protect yourself from uninsured or underinsured drivers.

Uninsured/Underinsured Motorist Requirements By State

What uninsured motorist insurance you need to drive legally will vary from state to state. You may have to carry uninsured and underinsured motorist insurance in some states, while in others, you may need to carry neither or just one of these coverages. Here are the minimum car insurance requirements in your state.

According to the Insurance Information Institute (III), 20 states and the District of Columbia have a mandatory requirement for this type of coverage. As you can see from the table above, you don’t have to carry uninsured or underinsured motorist insurance in some states unless you wish to. You may have to carry one of these coverages or both in other states. 

Getting Uninsured and Underinsured Motorist Coverage (UM/UIM)

If you aren’t required to get these coverages, you may wonder if you should spend the extra money to purchase these coverages. When choosing whether to carry uninsured or underinsured motorist coverage, you should consider the following: 

• Your Health Insurance: If you have good health insurance, you probably don’t need to get bodily injury coverage for uninsured or underinsured motorist insurance unless you want coverage for pain and suffering after an accident. 
• Your Car Insurance: If you have good collision insurance, you can probably skip out on carrying uninsured or underinsured motorist coverages if they aren’t required in your state. 
• Your State’s Number of Uninsured or Underinsured Drivers: We recommend looking at how many uninsured drivers and underinsured drivers there are in your state before deciding whether you should skip out on these coverages. 

If you already have good health and car insurance, you may not need to carry uninsured or underinsured motorist coverage if your state doesn’t require them. Suppose you are worried about the cost of carrying these insurance coverages. In that case, the best thing you can do is shop around for quotes and see if you can get cheaper insurance rates from a different auto insurance company in your area. 

Read more: How To Combine Car Insurance Coverage With the Right Deductible

Uninsured and Underinsured Motorist Coverage (UM/UIM) Cost

The cost of uninsured and underinsured motorist coverage (UM/UIM) varies based on state laws, your coverage limits, your driving history, and car insurance discounts. In most cases, the uninsured coverage cost makes up about 5% to 10% of your total car insurance premium.

Uninsured and Underinsured Motorist Coverage Monthly Rates by Provider

This coverage is crucial because if an uninsured driver causes an accident, you could be stuck paying for your medical bills and car repairs out of pocket. It’s also important to consider understanding UIM exposure, as some drivers may have insurance but not enough to cover all accident-related costs.

The true cost of an accident can be much higher than what the at-fault driver’s insurance will pay, leaving you responsible for the remaining expenses.

Some people don’t understand the difference between UIM and SIM, but Supplemental Insurance (SIM) is different from UM/UIM coverage. Carrying a UIM card helps prove your coverage if you need to file a claim

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Uninsured/Underinsured Motorist Claims and Payouts

We’ve covered how to make claims and what amount of payout you can expect to receive from your claim. However, read on if you have uninsured or underinsured motorist insurance and need to file a car insurance claim. 

How to File an Uninsured/Underinsured Claim

If the other driver caused the accident and either doesn’t have any insurance or doesn’t have enough insurance to cover your accident costs, you need to contact your insurance company to make a claim.

Generally, you can either call the insurance company or file a claim online. This situation is an example of an uninsured loss, where you have to rely on your own policy to cover the damages.

You will need to have all the relevant accident information, such as photos of the damages, the other driver’s details, and when and where the accident happened.

🚗⚖️ Uninsured & Underinsured Motorist Coverage: Why It Matters

Did you know that Uninsured (UM) and Underinsured Motorist (UIM) coverage can protect you if you’re involved in an accident with a driver who doesn’t have enough insurance—or any at all? 🚨 pic.twitter.com/P91EnDcEnd

— Harman Law (@harmanlawnc) March 10, 2025

Your insurance company will guide you through the process and explain the truth about uninsured motorist coverage, including what expenses it will cover and any limitations.

Filing this type of claim is part of the uninsured driver promise in insurance, ensuring that you are still protected even if the at-fault driver doesn’t have proper coverage.

Read more: Understanding Car Insurance Codes and Laws

How Uninsured/Underinsured Payouts Work

Like any insurance coverage, uninsured and underinsured motorist coverage will pay you for damages up to the policy limits. The insurance company will also consider the payout you got from the other driver’s insurance if you make a claim on your underinsured motorist coverage.

So if you got $10,000 from the other driver’s insurance but have $20,000 worth of damages, an example of underinsured motorist coverage will show that underinsured coverage will pay the remaining $10,000 as long as your policy limit is $10,000 or more.

Likewise, if your car is hit by an uninsured driver in a parking lot or similar situation and has $5,000 worth of damages, Progressive uninsured motorist coverage will help cover that amount as long as your limit is equal to or more than the damages.

If you believe that the insurance company offered you a low payout, UM management strategies can help you contest the amount of car insurance payout by providing solid evidence.

Read more: How do you contest the amount of a car insurance payout?

Examples of Uninsured and Underinsured Motorist Accident Claims 

If you aren’t sure whether you should claim an accident or not, reach out to your insurance company to see what your insurance policy covers. However, the examples below should help you understand common claims. 

• Rear-Ended by an Uninsured Driver: Because the other driver doesn’t have insurance and is at fault for the accident, you should make a claim under your uninsured motorist coverage. 
• When an Underinsured Driver Hits Your Parked Car: In this case, you should file a claim under your underinsured motorist coverage. 

Basically, if you weren’t at fault for the accident, but the other driver doesn’t have insurance or doesn’t have enough insurance, you would file a claim with your insurance company. 

Read more: How long does a car insurance claim take to process?

Hit-and-Runs Are Covered Under UM/UIM Motorist Coverage

Hit-and-runs, where another driver crashes into you and then drives off without giving insurance information, will usually be covered under uninsured motorist coverage.

However, the truth about uninsured motorist coverage and hit-and-runs is that whether you are covered will also depend upon your personal insurance company and what state you live in. 

Not all states cover hit-and-runs under uninsured motorist coverage. In these cases, it is wise to carry collision car insurance to pay for any damages that might occur from a hit-and-run. 

Why Uninsured and Underinsured Motorist Insurance Matters

Uninsured and underinsured motorist insurance helps protect you if you’re in an accident with a driver who doesn’t have enough coverage. Some states require it, while others make it optional.

Checking your state’s rules and reviewing your current health and auto insurance can help you decide if you need extra protection. This coverage pays for medical bills and car repairs when the at-fault driver can’t afford to cover the damages.

Costs vary based on where you live and how much coverage you choose, but having UM/UIM can save you from paying a lot out of pocket. If you need to file a claim, report the accident right away and provide proof to get a fair payout. In the end, knowing your risks and comparing rates can help you get the right coverage at the best price.

Check out our guide on the best car insurance for high-risk drivers to see how UM/UIM coverage can protect you from costly accidents.

Affordable car insurance rates are just a click away. Enter your ZIP code into our free quote tool to find the best policy for you.

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