Uninsured motorist insurance pays for your injuries and vehicle damage when you're hit by a driver who has no insurance or not enough insurance to cover what they caused.

This coverage protects you in two main situations. First, when another driver causes an accident and has zero insurance — which happens more often than you might expect, since rates of uninsured drivers vary by state but run between 5 and 15 percent in most places. Second, when the other driver has insurance but the policy limits are too low to cover your medical bills or repair costs. In both cases, your uninsured motorist coverage steps in and pays you directly, up to your policy limit.

Uninsured motorist insurance comes in two forms: bodily injury coverage (which pays medical expenses, lost wages, and pain and suffering) and property damage coverage (which pays to repair or replace your vehicle). Some states require you to carry it. Others make it optional but strongly recommend it. A few states don't offer it at all. Your insurance agent can tell you what your state requires and what your current policy includes.

Key Takeaways

  • Uninsured motorist coverage pays your medical bills and vehicle repairs when hit by a driver with no insurance or insufficient coverage.
  • The coverage comes in two types: bodily injury (medical costs and lost wages) and property damage (vehicle repair or replacement).
  • Whether this coverage is required depends on your state — some mandate it, others make it optional, and a few don't offer it.
  • Your uninsured motorist limit is the maximum the insurance company will pay you, so choosing the right limit matters for your protection.
  • You typically must report the accident to your insurance company and provide details about the uninsured driver to start a claim.

How uninsured motorist bodily injury coverage works

When an uninsured driver hits you and causes injury, your uninsured motorist bodily injury coverage pays for medical treatment, hospital stays, surgery, physical therapy, and other health care costs related to the accident. It also covers lost wages if you miss work during recovery, and pain and suffering damages — compensation for the physical and emotional harm you experienced.

The coverage pays up to the limit you chose when you bought your policy. If you selected a $25,000 limit and your medical bills and other damages total $40,000, your insurance pays $25,000 and you absorb the remaining $10,000 yourself. This is why the limit you choose matters. Higher limits cost more per month but protect you if injuries are severe.

You do not need to prove the other driver was at fault — your own insurance company handles that investigation. However, you do need to show that the other driver was uninsured or underinsured, which usually means providing a police report, witness statements, or the other driver's information (if they stopped at the scene).

How uninsured motorist property damage coverage works

Uninsured motorist property damage covers repairs to your vehicle when an uninsured driver causes the accident. It works similarly to bodily injury coverage: you file a claim with your insurance company, they investigate, and they pay up to your policy limit for the cost of repairs or the vehicle's actual cash value if it's totaled.

Not all states offer uninsured motorist property damage coverage as a separate option. Some states bundle it with bodily injury coverage, and others don't offer it at all — in those places, your collision coverage would handle vehicle damage instead. Check your policy or ask your agent whether your state includes this option and whether you have it.

If your vehicle is repairable, the insurance company will either pay you directly or pay the repair shop. If the vehicle is totaled, they pay you the actual cash value (what the vehicle was worth just before the accident), minus your deductible. You then own the salvage and can sell it for parts or scrap.

Uninsured versus underinsured motorist coverage

Uninsured motorist coverage applies when the other driver has no insurance at all. Underinsured motorist coverage applies when the other driver has insurance but their policy limits are too low to cover your damages. For example, if an insured driver causes $50,000 in injuries but their bodily injury limit is only $30,000, their insurance pays $30,000 and your underinsured motorist coverage pays the remaining $20,000 (up to your limit).

Many states allow you to buy these as a single combined policy, sometimes called UMBI (uninsured and underinsured motorist bodily injury). Others require you to buy them separately. Some states include underinsured motorist coverage automatically with uninsured motorist coverage; others make it optional. Your policy documents will show what you have, but your agent can clarify if the language is unclear.

The practical difference matters most when you're seriously injured. An uninsured driver leaves you with no other source of payment. An underinsured driver's insurance company pays first, then your coverage fills the gap. Both situations are why having adequate limits protects you.

State requirements and what varies by location

About half of all states require uninsured motorist bodily injury coverage as part of every auto insurance policy. These states include California, Florida, Illinois, New York, and Texas, among others. If you live in a state that requires it, you cannot buy a policy without it — though you can choose your limit within state minimums.

Other states make uninsured motorist coverage optional, meaning you can decline it if you choose. A few states, including New Hampshire and Virginia, do not offer uninsured motorist coverage as a standard option at all. In those places, you rely on your collision coverage or your own health insurance to cover vehicle damage and medical bills.

State minimums also vary. Some states set a minimum uninsured motorist bodily injury limit of $25,000 per person and $50,000 per accident. Others use different figures. Your insurance company will show you the state minimum when you buy or renew your policy. Many insurance experts recommend carrying limits higher than the state minimum — often $100,000 or more — because serious injuries can exceed low limits quickly.

When your uninsured motorist claim gets paid

To file an uninsured motorist claim, report the accident to your insurance company as soon as possible. Provide the police report number, details about the other vehicle and driver (if you have them), witness contact information, photos of the damage, and medical records if you were injured. Your insurance company will assign a claims adjuster who investigates whether the other driver was truly uninsured or underinsured.

The investigation typically takes two to four weeks, though complex cases can take longer. During this time, the adjuster may request additional documents, contact witnesses, or review medical records. Once they confirm the other driver was uninsured or underinsured, they calculate what they owe you based on your damages and your policy limit.

Payment usually comes by check or direct deposit within one to two weeks after the investigation closes. If you disagree with the amount they offer, you have the right to dispute it — your policy documents explain the dispute process, which often involves mediation or arbitration before a lawsuit.

Choosing the right uninsured motorist limit

Your uninsured motorist limit should reflect what you could lose in a serious accident. If you have significant medical bills, lost income, or a newer vehicle, a low limit leaves you exposed. For example, a $25,000 limit might cover basic injuries but not a surgery, extended recovery, or permanent disability. A $100,000 limit costs more per month but protects you if the worst happens.

Consider your own health insurance deductible and coverage limits as well. If your health insurance has a high deductible or limited coverage, a higher uninsured motorist limit becomes more important because it fills those gaps. Similarly, if you have significant assets or income to protect, higher limits make sense.

Your insurance agent can show you the monthly cost difference between limits and help you decide what fits your situation. There is no single "right" answer — it depends on your risk tolerance, finances, and what you could afford to pay out of pocket if uninsured motorist coverage did not exist.

Frequently Asked Questions

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

Yes, in most states. If a driver hits you and leaves the scene, you can file an uninsured motorist claim because you cannot identify the driver to pursue their insurance. You will need a police report documenting the hit-and-run. Some states require you to report the accident within a specific timeframe (often 24 hours) for the claim to be valid.

What if I was partially at fault for the accident?

Most states allow uninsured motorist claims even if you share some fault, though the amount you receive may be reduced based on your percentage of fault. For example, if you were 20 percent at fault and your damages are $10,000, you might receive $8,000. The exact rule depends on your state's comparative negligence laws.

Can I use uninsured motorist coverage if the other driver was insured but fled the scene?

If you know the other driver was insured but they left the scene, you would normally pursue their insurance company once you identify them. If you cannot identify them, you can file an uninsured motorist claim. The key is whether you can prove the driver's identity and insurance status.

Does uninsured motorist coverage pay for rental car costs while mine is being repaired?

Uninsured motorist property damage coverage typically covers only the repair or replacement of your vehicle, not rental costs. However, if you have rental reimbursement coverage as a separate add-on to your policy, that would cover a rental car. Check your policy or ask your agent whether you have rental reimbursement included.

What happens if my uninsured motorist limit is lower than my collision deductible?

If your uninsured motorist property damage limit is lower than your collision deductible, you would pay your deductible out of pocket and receive the uninsured motorist payment on top of that. This is one reason to coordinate your limits — many people set their uninsured motorist property damage limit at least equal to their collision deductible to avoid this gap.