Do I Need Uninsured Motorist Coverage? Three Questions

Say you carry your state's minimum auto insurance. An uninsured driver runs a red light and breaks your collarbone. Your hospital bill, surgery, and rehab come to $80,000. Without uninsured motorist coverage, none of that comes from auto insurance, because your liability limits protect the people you might hurt, not you. So where does it come from?

This is the question uninsured motorist coverage answers. The U.S. Department of the Treasury's Federal Insurance Office estimates that about 14% of U.S. drivers carry no insurance at all, which works out to roughly one in seven [1]. Carriers offer UM/UIM at every renewal and on every new quote. The pitch is honest, but it's still a pitch, and you deserve a straight answer on whether you actually need it.

This guide gives you that answer in three questions. You'll see when UM/UIM is required, when it's worth paying for even if it isn't required, and the narrow case where it's reasonable to skip. By the end you'll know which limit to carry and what to do if you ever need to file a claim.

The Short Answer: Three Questions Decide This

Three questions sort out whether and how much uninsured motorist coverage you need:

1. Does your state require it? A number of U.S. states plus the District of Columbia require uninsured motorist coverage in every auto policy [2]. If yours does, you carry it. The only remaining question is how much.
2. Do you carry above-minimum bodily injury liability? If you've raised your liability limits above the state minimum to protect your assets, your UM limit should match. Carrying low UM under high liability leaves the more important gap exposed. This question answers how much, not whether.
3. Do you have a separate umbrella policy that explicitly covers uninsured motorists? Almost no one. Most umbrella policies don't include UM without a specific endorsement, and you still need underlying UM on the auto policy to access umbrella protection.

For most drivers, the answer is: carry it. If Q1 is yes, you have to. If Q1 is no and Q3 is also no, the math at a 14% national uninsured rate [1] still says carry it. The narrow case where dropping to a state floor (or zero, if your state allows) might make sense is Q3 = yes with an umbrella that explicitly schedules UM exposure. Our state requirements page lists the minimum liability and UM rules for every state if you're not sure where yours stands.

What Uninsured Motorist Coverage Actually Does (and Doesn't Do)

Uninsured motorist coverage pays for your injuries and, in some states, your vehicle damage when an at-fault driver has no insurance or can't be found. It splits into two parts:

1. UM bodily injury (UMBI) covers medical bills, lost wages, pain and suffering, and long-term disability when an uninsured driver hurts you or your passengers.
2. UM property damage (UMPD) covers your vehicle repair when an uninsured driver damages your car. Not every state offers it.

Where readers get confused is the overlap with other coverages they already pay for. Health insurance pays your medical bills, but it does not pay your deductible, lost wages, pain and suffering, or long-term disability. Collision coverage pays your repair if you hit something or someone hits you, but it pays after a deductible (typically higher than UMPD's). Comprehensive coverage handles weather, theft, and animal strikes, not driver-on-driver collisions. UM fills the part of the picture none of those touch: the financial fallout from an at-fault driver who can't pay.

A separate but related coverage, underinsured motorist (UIM), kicks in when the at-fault driver has insurance but their limits aren't enough. Most states sell UM and UIM together; a few split them. The decision logic is the same.

Is Uninsured Motorist Coverage Required in Your State?

A number of U.S. states plus the District of Columbia require uninsured motorist coverage in every auto policy [2]. The rest make it optional, but in nearly every optional state you have to reject the coverage in writing on the application or quote form.

A few state specifics worth knowing:

• Illinois requires uninsured motorist bodily injury limits of at least $25,000 per person and $50,000 per accident on every policy [3].
• Maryland mandates UM coverage and publishes a consumer advisory on how the claim process actually works [4].
• Texas sells UM/UIM as optional but with a statutory $250 deductible (usually lower than collision) and requires written rejection if you don't want it [5].
• California offers UM/UIM as an option that must be rejected in writing; California also has a general rule that insurers do not surcharge for not-at-fault claims, which covers UM claims [6].
• Florida doesn't require bodily injury liability at all (the no-fault system uses PIP and PDL instead), and UM is optional but strongly recommended [7].
• Washington has a specific procedural gotcha: if you're hit by a "phantom vehicle" (one that caused a crash without making contact, like swerving into your lane), you must file a police report within 72 hours to qualify for a UM claim [8].

If you recently moved to a new state, your prior UM election doesn't follow you. The new state's rules apply, and you'll need to confirm what you have on the new policy.

How Much Uninsured Motorist Coverage Should You Carry?

The rule insurance professionals consistently endorse is to match your UM limits to your bodily injury liability limits. If you carry 100/300 in liability ($100,000 per person and $300,000 per accident), carry 100/300 in UM.

Here's why the math matters. Liability protects strangers from your at-fault claim. UM protects you from a stranger's at-fault claim. If you wouldn't want a stranger to come after you with less than $100,000 in protection, you shouldn't want less than $100,000 in protection when a stranger comes after you.

The Treasury Federal Insurance Office calculated the average bodily injury liability claim severity at $24,211 in 2022 [1]. State-minimum UM caps in many places top out at $25,000 per person. That's right at the average, which means a serious injury (above-average hospital stays, surgery, rehab) quickly outruns the cap. The average property damage liability claim ran $5,313 in the same year [1].

For example, an uninsured driver hits you and your back surgery, hospital stay, and physical therapy come to $80,000. A $25,000 UM cap pays the first $25,000. Your health insurance might cover much of the rest, but it won't pay your deductible, your lost wages, or pain and suffering. You'd be exposed for the gap, which can easily run into tens of thousands of dollars. A 100/300 UM limit closes most realistic scenarios.

UMPD matters most in states where it exists and offers a low statutory deductible. In Texas, the UMPD deductible is $250 [5], which is typically much lower than the collision deductible on your policy. If you're in a non-UMPD state, your collision coverage is the backup for vehicle damage from an uninsured driver.

The Honest "When You Might Skip It" Answer

For nearly everyone, the answer is "carry UM." The narrow case where rejection might make sense is a high-net-worth driver with a separate umbrella policy that explicitly schedules uninsured motorist exposure across all vehicles. Even then, your underlying auto policy needs minimum UM to access the umbrella layer, so you can't actually skip it entirely. You can only drop it to the floor.

Most umbrella policies don't automatically include UM. Read your umbrella's schedule of coverages before assuming it does. If UM isn't named, your umbrella won't pay when an uninsured driver hurts you.

For everyone else, rejecting UM in an optional state is betting against the math. At a 14% national uninsured rate [1], with state ranges from under 6% in Maine to roughly 28% in Mississippi [9], hit-and-run claims alone justify carrying it. The premium cost of UM is small compared to the exposure it closes.

The Cost: Is Uninsured Motorist Coverage Expensive?

UM is typically a small line item on top of your liability, but the price spread between carriers can be material. The national average full-coverage premium runs about $150 per month, or $1,803 per year, based on NAIC data adjusted for current motor vehicle insurance CPI [10][11]. UM usually adds a modest amount to that figure.

Carriers price UM differently. Some treat it as a near-throwaway, others as a margin lever. Aggregate UM-only pricing isn't published cleanly in the public NAIC database, and any single-carrier figure you see online is only that carrier's price. The reliable way to know what UM costs in your state, at your limits, with your driving history, is to compare quotes from top carriers.

How to File an Uninsured Motorist Claim

Filing a UM claim feels backwards because you're filing against your own policy. Your carrier then "subrogates," which means they pursue the at-fault driver behind the scenes on your behalf. You don't have to fight that battle yourself.

The basic flow:

1. Call police at the scene. A police report is required for UM claims in most states, especially hit-and-run or phantom-vehicle incidents [8].
2. Document everything. Photos of damage, witness names and contact information, and the other driver's plate if you can get it.
3. Notify your carrier within their reporting window. Most policies require notification within 24 to 72 hours.
4. File the UM claim against your own policy. Your adjuster will request medical records, repair estimates, and the police report.
5. Let your carrier subrogate. They'll pursue the at-fault driver for recovery; you don't pay legal fees for this.

Rate impact varies by state. California's general not-at-fault surcharge prohibition extends to UM claims [6]. Other states allow surcharges for any claim filed, even one you didn't cause. If your claim gets denied, the next step is your state Department of Insurance complaint process; our guide on what to do after a claim denial walks through it, and our guide on filing a DOI complaint covers the procedural steps.

FAQ

What happens if you don't have uninsured motorist coverage?

If an uninsured driver hits you and you have no UM coverage, you have three options. You can file under your collision coverage to repair your car (with your collision deductible), which doesn't pay for injuries. You can use your health insurance for medical bills, which doesn't cover lost wages, pain and suffering, or your health deductible. Or you can sue the at-fault driver, who is usually "judgment proof," meaning they don't have assets to pay even if you win.

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

Most drivers should still carry UM bodily injury even with health insurance. Health insurance covers your medical bills, but it does not pay your deductible, your lost wages, your pain and suffering, or long-term disability after a serious injury. UMBI covers all of those. Health insurance and UMBI solve different financial problems.

Do I need uninsured motorist coverage if I have Medicare?

Yes, most drivers on Medicare should still carry UMBI. Medicare doesn't pay your Part B deductible or coinsurance for an extended hospital stay, doesn't cover lost wages if you still earn income, and doesn't pay for pain and suffering. UMBI handles those costs. Medicare also has a "secondary payer" rule that complicates auto-injury reimbursement when other coverage exists; UMBI being in place can speed up your care path.

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

It depends on the state. California, for example, has a general not-at-fault surcharge prohibition that covers UM claims [6]. Other states allow carriers to surcharge any claim filed, even one you didn't cause. Ask your carrier in writing how your state treats UM claim surcharges, or check your state Department of Insurance. UM rate impact is usually smaller than at-fault rate impact, but it isn't zero in every state.

What's the disadvantage of uninsured motorist coverage?

The honest disadvantages are three. First, you pay a premium for a coverage you might never use. Second, rate-impact rules for UM claims vary by state, so a not-at-fault claim could still bump your premium in some places. Third, UMPD isn't sold in every state, so the vehicle-damage protection you might expect from UM isn't always part of the package. Weigh those against the math: at 14% national uninsured plus the larger group carrying minimum liability, the protection you buy is real [1].

The Bottom Line

Uninsured motorist coverage protects you from the 1-in-7 driver who can't pay for the damage they cause [1]. Most drivers benefit from carrying it; the narrow rejection case is a high-net-worth driver with a UM-endorsed umbrella policy.

Three steps to take this week:

1. Pull your declarations page and write down your current UM and bodily injury liability limits.
2. Raise your UM to match your bodily injury liability if it's currently lower.
3. Get comparison quotes that include matched UM/UIM limits to see the real cost.

Compare rates from top carriers in about two minutes at quotefii.com.

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