What Is Uninsured Motorist Coverage? What Does Uninsured Motorist Coverage Cover?

Uninsured motorist coverage is a type of auto insurance that protects you and your vehicle in the event of a collision with an uninsured driver. It applies if the uninsured driver is found at fault for the accident. 

When you have uninsured motorist coverage on your car insurance, it will cover car repairs and medical expenses you incurred due to the collision. There are two kinds of uninsured motorist coverage: uninsured motorist property damage (UMPD) and uninsured motorist bodily injury (UMBI). 

UMBI covers any injuries a person experiences due to the collision. UMPD pays for any damage done to your car. It’s imperative to have uninsured motorist coverage since it assists in paying the costs associated with repairing the car and any medical bills. Uninsured motorist coverage is often included as standard coverage in auto insurance policies, and it greatly assists the injured parties after a collision with an uninsured driver. 

What is "stacking" uninsured motorist coverage? 

This is a common question when shopping for an auto policy. Stacking uninsured motorist coverage means that you can use the combined limits of your uninsured motorist coverage on every vehicle on your policy, instead of just the limits for the damaged vehicle. You may also be able to stack coverages across policies if you’re an insured driver under a policy held by another member of your household, as well as on your own policy.

For example, if you have two vehicles on one policy, and each has uninsured motorist coverage of $50,000, you can stack those coverages to have $100,000 in coverage if you’re involved in a collision with an uninsured driver. 

Some states automatically stack uninsured motorist coverage, while others don’t.^[1]. 

You can purchase stacked coverage as an additional add-on to your policy if you live in a jurisdiction where uninsured motorist coverage is not stacked automatically. Stacking uninsured motorist coverage provides additional safeguards in a collision with an uninsured driver because it enables you to access the absolute limits of the insurance policy on each vehicle, rather than just the policy limit on one vehicle. However, as a consequence, your monthly payments for automobile insurance coverage increase.

How does uninsured motorist coverage work?

Uninsured motorist coverage is a type of insurance coverage that covers the insured driver if they’re involved in a collision with a driver who doesn’t have car insurance. This insurance also applies if you’re the victim of a hit-and-run: a collision where a driver flees the accident scene without providing their insurance information. 

The coverage pays for your medical bills and resulting damages if you have uninsured motorist coverage, up to the limitations of your policy. To file a claim under an uninsured motorist policy, you must first submit a claim with your insurance provider and provide proof of the collision, such as a police report or witness testimony. 

Not all states require drivers to have uninsured motorist coverage.^[2] But even if you live in a state that doesn’t mandate it, having uninsured motorist coverage is still a good idea. A collision with an uninsured driver can happen at any time.

What does uninsured motorist coverage cover?

Uninsured motorist coverage typically covers the following expenses:

• Medical expenses: Your uninsured motorist policy will cover medical treatment for injuries incurred due to a collision with an uninsured motorist, including ambulance and hospital expenditures.

• Property damage: Up to the policy’s limits, uninsured motorist coverage will cover the cost of repairs for your vehicle after an accident involving an uninsured driver.

• Lost wages: This type of insurance even reimburses you for lost wages if you’re unable to work for a time after a wreck with an uninsured driver.

• Pain and suffering: Scars aren’t the only trauma a driver may be left with after an accident involving an uninsured driver. Some policies will even cover pain and suffering that result from the injuries sustained from the accident.

It’s essential to be aware of the particular protections available to you through your uninsured motorist policy. Be sure to read the policy thoroughly so you know what it does and does not cover. 

Does uninsured motorist insurance cover hit-and-run accidents?

Yes, uninsured motorist coverage typically covers hit-and-run accidents. Drivers with uninsured motorist coverage don’t need to worry if they have an accident with someone who is uninsured; their policy will pay for their medical treatment and car repairs. 

The insured driver must submit the police report to their insurance carrier as soon as possible. These reports can include clues about the other driver, such as the vehicle make and model and witness statements. Most policies require this information to make a claim under an uninsured motorist policy after a hit-and-run accident.

How to get uninsured motorist coverage quotes

Here are a few different ways to get uninsured motorist coverage quotes:

1. Get in touch with an auto insurance company. If you have an existing policy, you can contact your insurance agent to add uninsured motorist coverage. Shopping around can be beneficial, too — sometimes competitors offer better deals. Once you find what looks like a good match, give them a call or visit their website to request a quote.

2. Use a website that provides insurance comparisons online. Many websites allow you to simultaneously compare uninsured motorist insurance quotes from different companies. Just enter your information, and the website will produce quotes from several insurers.

3. Employ the services of an insurance broker. An insurance broker is a trained specialist who assists drivers in locating the appropriate coverage at an affordable cost. Brokers can take into consideration your driving history to find the best match. They can even find discounted rates that aren’t publicly available.

It's smart to compare quotes from different insurers to choose the one that offers your required coverage at the best possible price. Pay close attention to the terms and restrictions of each policy. Every driver’s situation is unique, and not all uninsured motorist policies offer the same coverage.

What are the best insurance companies for uninsured motorist coverage?

The table below shows the best insurance companies for uninsured motorist coverage.

When it comes to uninsured motorist coverage, USAA offers the lowest average cost overall. On an annual basis, its rates average around $1,821, or $152 per month. Keep in mind, though, USAA only serves active-duty military and their families, or veterans and their families. Just behind USAA are car insurance companies Travelers, State Farm, GEICO, and Nationwide. These four companies are all priced below $2,200 annually on average in uninsured motorist coverage rates. Other options include Liberty Mutual and Farmers, both of which are well over $3,000 in average annual costs.

Why do you need uninsured motorist coverage?

Uninsured motorist coverage is the sort of policy that safeguards you if you’re involved in a collision with a driver who has no coverage or if you’ve been hit by a driver who flees the scene of the accident without providing insurance information. Without uninsured motorist coverage, you would be responsible for your own medical expenses and car repairs if you’re hit by an uninsured driver. 

Uninsured motorist coverage is important for other reasons, too. First, it serves as a form of financial security. By covering your medical expenses, uninsured motorist coverage protects you from falling into financial difficulties after an accident with an uninsured driver. Second, some states require drivers to carry uninsured motorist coverage. Depending on where you live, you may need uninsured motorist coverage to legally drive in your state. The last benefit is that it assists in covering hit-and-run accidents, which is very helpful for people who reside in regions with a high rate of hit-and-run collisions. Uninsured motorist coverage, in general, is a good idea since it offers crucial protection in the event of a crash with an uninsured driver.

Do you need uninsured motorist coverage if you have health insurance?

Yes, you still need to have uninsured motorist coverage on your policy even if you have health insurance. While your health insurance may pay for some or all your medical bills, it won’t cover other expenses — like pain and suffering, lost earnings, and damage to your vehicle — that can stem from being in a crash with an uninsured driver.

Which states require uninsured motorist coverage?

The table below shows which states require drivers to carry uninsured motorist coverage, as well as the average annual and monthly cost of coverage in the state.

New York, Maryland, and Connecticut have the highest monthly premiums. The higher insurance prices in these states aren’t necessarily because more uninsured drivers live there. Here’s a brief explanation of the reasons for the higher costs of uninsured motorist coverage in these states. 

New York has the most costly monthly rate for this type of coverage. 

Still, surprisingly the state ranks in the lowest rung of states with the most uninsured drivers, with a percentage of only 4.1% without insurance.^[3] So what are the reasons this coverage is so expensive in New York? 

New York is a no-fault state, which means more coverage is required.^[4] There is also a high rate of insurance fraud.^[5] Medical costs are also a major reason. Medical costs have risen yearly across the nation, but even more so in New York. Insurance companies are hit hard by this expense, and accidents have also increased in New York, resulting in increased medical and car repair expenditures. Stolen vehicles and vandalism are additional reasons.

Maryland is the second most-expensive state shown in the table. 

In contrast to New York, there is a much higher percentage of uninsured motorists, with a rate of 14.1%. The high rate of drivers without insurance increases the cost for everyone else. Population density is another reason since more drivers in a smaller area increases the risk of accidents. Maryland has the 18th-largest population of any state. Extreme weather events, such as flooding and hurricanes, are common in Maryland, and large numbers of vehicles can be damaged all at once when they occur. 

Connecticut has a high ratio of millionaire households per capita who tend to drive more expensive vehicles. 

More expensive vehicles tend to include more technology, which costs more to repair if damaged in an accident. This cost is on top of the fact that automotive repair prices have also risen due to inflation. Increased medical expenditures are another factor.  

When reviewing car insurance by state regulations, different states may have significantly different prices. 

Is uninsured motorist coverage required in the state of California?

Uninsured motorist coverage is optional in California. Nevertheless, it may be useful to some drivers. Having uninsured motorist coverage assists in covering the costs associated with being involved in a collision with an uninsured driver, including medical expenditures, missed earnings, and other associated costs. 

Car insurance companies must offer uninsured motorist coverage in the state of California, but you don’t have to buy it. The minimum threshold of uninsured motorist insurance must be equal to the required minimum level of liability coverage for both bodily harm and property damage, which are $15,000 per person and $30,000 per occurrence, and the lowest liability limit for the destruction of property is $5,000.^[6] 

It’s essential to remember that uninsured motorist coverage only pays for damage caused by drivers who are not covered by any other type of insurance. The coverage doesn’t protect you if you’re hit by a driver who is insured but doesn’t have sufficient insurance to cover your damages. In that situation, you would need to have underinsured driver coverage to protect yourself financially against the consequences of being involved in an accident with a driver who doesn’t have adequate insurance coverage.

Is uninsured motorist coverage required in the state of Georgia?

Georgia doesn’t require drivers to carry uninsured motorist coverage, but it’s still a good idea to buy it. Having uninsured motorist coverage assists in covering the costs of medical care, lost income, and other expenditures that follow from a collision with an uninsured driver. Uninsured motorist coverage pays for your medical bills and any property damage caused by the other driver if that driver doesn’t have insurance. However, uninsured motorist coverage won’t compensate you if you’re hit by an insured driver who doesn’t have enough coverage. You’ll need underinsured motorist coverage to safeguard yourself financially from the consequences of a collision with a driver lacking sufficient insurance.

Is uninsured motorist coverage required in the state of Florida?

Florida does not mandate that drivers have uninsured motorist coverage, but getting it is still a good idea. Uninsured motorist coverage helps pay for your medical bills, missed earnings, and other associated costs if you’re in an accident with an uninsured driver. 

Florida law requires insurance companies to provide all drivers with the option of uninsured motorist protection. To meet the required minimums for property damages and physical injury harm liability, the threshold of uninsured motorist coverage must be the same. Florida drivers must maintain at least $10,000 in personal injury protection and $10,000 in property damage liability protection. 

Remember that uninsured motorist coverage only kicks in when the other driver is uninsured. To protect yourself in case you get into an accident with a driver who has insurance, but not enough to pay for all your costs, you’ll need underinsured motorist coverage.

How much uninsured motorist coverage do you need?

A number of variables go into determining how much uninsured motorist coverage you need, including your assets, income, and existing policies. The risk of being in a collision with an uninsured driver is high enough that it’s imperative to maintain adequate uninsured motorist coverage to safeguard your assets. 

Determining an appropriate level of uninsured motorist protection requires careful thought. First, consider your financial assets. Could you afford to pay out of pocket for car repairs? If not, it may make sense to purchase additional coverage. Secondly, think about how much you earn from your employment. Consider purchasing additional uninsured motorist coverage if you can’t afford to miss a paycheck to cover unexpected repairs. Lastly, consider your current insurance coverage. Having multiple kinds of insurance, such as liability and medical payment coverage, may reduce the need for uninsured motorist coverage. 

Regardless, if your state requires uninsured motorist coverage, you’ll need to buy at least the state-mandated minimum amount. It may also be a good idea to consult with an insurance representative or broker to determine the right level of uninsured motorist coverage. They are able to assist with risk analysis and determine the correct level of protection needed to safeguard your property and income.

How to calculate uninsured motorist coverage

Listed below are ways to calculate the amount of uninsured motorist coverage you need and what factors to consider. 

1. Calculate the asset's value. Ascertain the value of the asset. If the repair and replacement cost of the vehicle exceeds your financial capability to replace it, you would want to increase coverage. 

2. Analyze your finances. Take into account your annual pay and other means of financial support to determine what levels of coverage you can afford.

3. Check your current insurance coverage. Look at all your insurance policies, not just your liability policy. Think about the state-mandated minimums for uninsured motorist protection. The minimum uninsured motorist coverage required by law varies from state to state. You must have at least the state-mandated level of protection. If it’s not required in your state, other overlapping policies may offer some additional protection. 

4. Assess the risk. Think about how likely you are to be involved in a collision with an uninsured motorist. Policyholders should consider buying uninsured motorist protection in areas with a high concentration of drivers without insurance.

You can utilize a car insurance calculator or consult with an agent or broker to establish the most suitable amount of uninsured motorist coverage for your needs after taking into account these variables. Ultimately, you need to find the right balance between an adequate level of protection and your resources.

How to file an uninsured motorist claim

Listed below are the steps to follow to file an uninsured motorist claim. 

1. Get in touch with your insurance provider. As soon as possible after an accident, get in touch with your insurance provider to report the accident. If you have rental car reimbursement coverage and your vehicle is significantly damaged, you should ask for a rental car.

2. Find the proof. Gather all available proof. Collect all photo evidence, the location of the accident scene, the damaged vehicle, a police report, and documentation of any injuries. If possible, get the contact details of witnesses who saw the accident occur.

3. Put in an application for reimbursement. Your insurance company may send you a claim form. You should promptly fill out the form in its entirety and submit it to your insurance provider. Before you submit the claim form, ensure you have all relevant evidence. The insured party is responsible for submitting all necessary evidence to the insurance company, including but not limited to repair estimates, medical bills, and documentation related to lost wages.

4. Talk things over with your insurer. Your insurer may be willing to negotiate a settlement with the person involved if they file a claim. Be prepared to negotiate a reasonable payment based on the terms of your policy, and offer all documentation and evidence to back up the claim.

5. Seek the services of a lawyer. If you’re unable to resolve the claim with your insurance company, you can seek the assistance of a lawyer who can help to resolve the claim. The process of submitting a car insurance claim for damages caused by an uninsured motorist is sometimes difficult. You should consult with an insurance agent or attorney if you need assistance navigating the process.

Can you file a claim for hit and run if you have uninsured motorist insurance?

Yes, drivers with uninsured motorist coverage are able to file a claim for a hit-and-run accident. You may be protected financially by uninsured motorist coverage in the event of a collision with a driver who fails to leave their contact details or who does not have insurance. 

Furthermore, if you’re involved in a hit-and-run collision and have uninsured driver protection, call your insurance company as quickly as possible to file a claim and request coverage under the policy. Provide your insurance with the date, time, and place of the accident, as well as any information you have about the other automobile or driver. You must gather as much evidence as necessary to support your claims, such as images of the accident scene, car damage, and any injuries. 

The insurance carrier will examine the claim to see if you qualify for compensation under your uninsured motorist policy. If the claim is approved, the insurer will pay you the coverage amount provided in the policy, which includes payment for medical costs, lost income, and any losses stemming from the hit-and-run accident. Remember, the procedure of submitting a claim for a hit-and-run accident is sometimes complicated, and it may be a good idea to speak with a lawyer if you can’t resolve any important problems during the claims process.

What types of vehicles need uninsured motorist coverage?

Many states require uninsured motorist coverage for automobiles, trucks, and motorbikes. Keep in mind that uninsured motorist coverage only kicks in when the other driver is uninsured. You may not be compensated if you’re hit by an underinsured driver who doesn’t have enough coverage. 

Consider supplementing your uninsured motorist policy with additional insurance, such as underinsured motorist coverage. This will provide coverage if you’re hit by an insured driver who lacks adequate liability insurance to cover all your damages. The underinsured driver’s liability insurance will cover your expenses for the accident up to their policy’s limits.

What is the difference between comprehensive and collision insurance coverage?

Comprehensive insurance protects against losses that are not the result of a collision, such as those caused by natural disasters, vandalism, and theft. Conversely, collision insurance pays for repairs after a collision with another vehicle or a stationary object. 

You’re not obligated to choose between comprehensive vs. collision insurance, as both policies are able to be held simultaneously. Having both collision and comprehensive insurance protects you financially in the case of an incident or other loss to the vehicle.

Keep in mind that comprehensive and collision insurance are not mandated by law and are not appropriate for every vehicle, such as a vehicle that has a very low value. However, if you still owe money on the vehicle, the finance company may require this coverage. It’s important to take your individual needs and financial situation into account when determining whether or not to purchase comprehensive and collision insurance.

What are the alternatives to collision insurance coverage?

Insurance against collisions with other vehicles or stationary objects is known as collision insurance. Without collision coverage, you’ll have to pay out of pocket for any repairs needed for your damaged car. If you finance or lease your vehicle, your lender or leasing company will require you to carry full coverage, and you'll have no alternatives to collision.

If you own your car outright, here are some alternatives to collision insurance coverage that you could consider when purchasing an insurance policy.  

• Personal funds: If you’re able to pay for the repairs to your own vehicle if the vehicle is damaged using your savings.

• Loans for car repair: If you have good credit and are able to secure a loan to cover the expense of fixing the vehicle.

• Credit cards for a car repair: A credit card that allows you to pay for vehicle repairs with the card's available limit. Don't forget that you’ll need to factor in the interest that you’ll be charged for the transaction.

• Car repair financing: Certain repair shops may offer financing programs that enable you to pay for the repairs over a period of time.

It’s essential to keep in mind that these options are not appropriate for everyone, nor do they offer the same amount of financial protection as collision insurance does. It’s important to take into account your unique requirements, as well as your potential losses resulting from an accident, before settling on an alternative to collision insurance coverage.