Uninsured driver coverage pays for your injuries and vehicle damage when someone without insurance hits you

Uninsured motorist coverage (often called UM) is an optional add-on to your car insurance policy that covers medical bills, lost wages, and pain and suffering if an uninsured driver causes an accident you're in. It also covers hit-and-run accidents where the other driver flees and you can't identify them. In most states, your insurer will pay up to the limit you chose when you bought the policy — typically $25,000 to $100,000 per person, though you can select higher amounts.

The coverage exists because roughly 13% of drivers on U.S. roads carry no insurance at all, according to the Insurance Research Council. If one of them hits you, your own medical bills and car repairs become your problem unless you have this protection. Your health insurance may cover some medical costs, but it won't pay for lost income, pain and suffering, or vehicle damage — and it won't cover the other driver's liability to you at all.

Uninsured motorist coverage is mandatory in some states and optional in others. Even where it's optional, most insurers will ask you to decline it in writing if you don't want it, because the financial risk of refusing it is substantial.

Key Takeaways

  • Uninsured motorist coverage pays your medical bills, lost wages, and vehicle damage when an uninsured or hit-and-run driver causes an accident.
  • You choose a coverage limit (usually $25,000 to $100,000 per person) when you buy the policy, and that's the maximum your insurer will pay.
  • The coverage is mandatory in some states and optional in others, but even optional coverage usually requires written rejection.
  • Your own health insurance may cover medical costs but won't cover lost income, pain and suffering, or vehicle damage from an uninsured driver accident.
  • Uninsured motorist coverage does not cover accidents where you are at fault, or damage to your vehicle from theft, weather, or collision with an object.

How uninsured motorist coverage actually works after an accident

When an uninsured driver hits you, you report the accident to your own insurance company, not theirs (because they don't have one). You provide your insurer with the police report, witness statements, and photos of the damage. Your insurer then investigates whether the other driver was truly uninsured and whether they were at fault.

If your insurer confirms the other driver had no insurance and caused the accident, they pay your covered losses up to your policy limit. This includes medical treatment, emergency room visits, physical therapy, and other reasonable medical expenses. It also covers lost wages if you miss work during recovery, and in many states, compensation for pain and suffering — though the exact amount varies by state law and how serious your injuries are.

The process typically takes weeks to months, depending on the severity of your injuries and how quickly medical treatment is complete. Your insurer won't pay anything until they have a clear picture of your total losses, so if you're still in treatment, they may ask you to wait until you've finished before they settle the claim.

The difference between uninsured and underinsured motorist coverage

Underinsured motorist coverage (UIM) is a separate add-on that covers the gap when the at-fault driver has insurance but their policy limit is too low to cover your losses. For example, if an insured driver causes $80,000 in damage and injuries but only carries $30,000 in liability coverage, their insurer pays $30,000 and your underinsured motorist coverage pays the remaining $50,000 (up to your UIM limit).

Many people buy uninsured and underinsured motorist coverage together at the same limit, so they're protected whether the other driver has no insurance or not enough. Some states require you to buy them together; others let you choose them separately. Your insurer can tell you what your state requires.

Underinsured motorist coverage is more common than uninsured motorist coverage in states where it's optional, because underinsured drivers are more common than completely uninsured ones. A driver with a $15,000 liability limit is technically insured but may not carry enough to cover a serious accident.

What uninsured motorist coverage does not cover

Uninsured motorist coverage only applies when an uninsured driver causes an accident. It does not cover accidents where you are at fault, accidents involving a hit-and-run by a motorcycle or bicycle (in most states), or damage from theft, weather, vandalism, or collision with an object like a pothole or guardrail.

It also does not cover your vehicle damage in most states — that's what collision coverage is for. Some states allow you to add uninsured motorist property damage (UMPD) coverage, which pays for vehicle damage from an uninsured driver, but this is rare and usually only available in states where uninsured motorist coverage is mandatory.

Uninsured motorist coverage does not cover your passengers' medical bills in most policies. If your passengers are injured, they may be able to file a claim under your uninsured motorist coverage, but the total payout is split among all injured people up to your policy limit. If you have three injured passengers and a $50,000 limit, that $50,000 is divided among all four of you.

How much uninsured motorist coverage you should buy

Most insurance agents recommend buying uninsured motorist coverage at the same limit as your liability coverage. If you carry $100,000 in liability coverage, buy $100,000 in uninsured motorist coverage. This way, you're protected at the same level whether the other driver is insured or not.

The cost of uninsured motorist coverage is low — usually $10 to $30 per six-month policy period, depending on your age, driving record, and location. Because the premium is small relative to the protection it provides, most financial advisors recommend buying it even in states where it's optional.

If you have significant medical bills or lost wages from a serious accident, the difference between a $25,000 limit and a $100,000 limit can be the difference between covering your costs and paying out of pocket. Your choice should depend on your income, your health, and how much you can afford to pay if you're injured.

Uninsured motorist coverage in hit-and-run accidents

If a driver hits you and leaves the scene, uninsured motorist coverage pays your medical bills and vehicle damage (if you also have collision coverage) — but only if you can prove it was a hit-and-run. Your insurer will ask for a police report documenting that you reported the accident within a set time frame (usually 24 to 72 hours). Without a police report, most insurers will deny the claim.

If you hit a parked car and the owner isn't present, that's also a hit-and-run, but it's your liability, not the other driver's. Uninsured motorist coverage won't help. You would use your collision coverage to pay for damage to your own vehicle, and your liability coverage would pay for damage to the parked car.

Some states require you to have uninsured motorist coverage to cover hit-and-run accidents. Others treat hit-and-run as a separate coverage option. Check your policy to see whether hit-and-run accidents are covered under your uninsured motorist coverage or whether you need to add separate hit-and-run protection.

State requirements for uninsured motorist coverage

About 20 states require you to buy uninsured motorist coverage as part of your standard policy. These include New York, Florida, Texas, and California. In these states, your insurer must offer it, and you can only refuse it by signing a written waiver.

In other states, uninsured motorist coverage is optional, and your insurer may not mention it unless you ask. Some optional states still require insurers to offer it, but don't require you to buy it. A few states don't require it at all.

Your insurance agent or your policy documents will tell you whether uninsured motorist coverage is mandatory in your state. If it's optional and you decline it, make sure you understand the financial risk — you're betting that you won't be hit by an uninsured driver, and that bet costs you nothing until you lose it.

Frequently Asked Questions

Does uninsured motorist coverage pay if I'm hit by a driver with a suspended license?

Yes, in most states. A suspended license means the driver is not legally allowed to drive, but it doesn't mean they have insurance. If they hit you and have no insurance, uninsured motorist coverage applies. Some states distinguish between suspended licenses and revoked licenses, so check your policy or ask your insurer.

What happens if the uninsured driver is found at fault but I don't have uninsured motorist coverage?

You can sue the driver directly in small claims or civil court to recover your losses, but collecting a judgment from someone without insurance is difficult. They may have no assets to seize, and even if you win, you may never see the money. This is why uninsured motorist coverage is considered essential protection.

Can I use uninsured motorist coverage if I'm hit while parked?

Yes, if an uninsured driver hits your parked car and you can identify them, uninsured motorist coverage pays for your injuries (if any). For vehicle damage, you would use collision coverage instead. If it's a hit-and-run and you have a police report, uninsured motorist coverage covers your injuries.

Does uninsured motorist coverage explore if the other driver's insurance lapses?

It depends on whether the driver was uninsured at the time of the accident. If their policy lapsed and they were driving without active coverage, they are uninsured, and your uninsured motorist coverage applies. If their policy was active at the time but they later failed to pay the premium, that's a different situation — their insurer may still be liable.

Will my rates go up if I file an uninsured motorist claim?

No. Uninsured motorist claims are not considered at-fault accidents, so filing one should not increase your premiums. Your insurer may not raise your rates, but they can still do so for other reasons unrelated to the claim. Ask your agent whether filing will affect your rate before you decide.