UM/UIM: What is uninsured and underinsured motorist coverage

Uninsured motorist coverage is a type of auto insurance that protects you in case you’re involved in an accident with a driver who does not have any liability insurance. Depending on your policy, UM coverage can help pay for medical expenses, lost wages, and property damage resulting from the accident.

Underinsured motorist coverage is a type of auto insurance that provides protection when you’re involved in an accident with a driver who has liability insurance, but whose coverage limits are too low to cover the full cost of damages and expenses resulting from the accident. UIM coverage helps pay for property damage and medical expenses, lost wages, and other injury-related costs for you and your passengers, depending on how your policy is structured.

How does uninsured/underinsured motorist (UM/UIM) coverage work?

If you’re involved in an accident that isn’t your fault, you typically would file a claim with the at-fault driver’s car insurance company for covered vehicle damage, medical expenses, lost wages, or other losses.

However, if the driver responsible for the collision has no insurance or not enough coverage, that’s where your own UM/UIM coverage would kick in. Minimum liability insurance requirements may not always provide adequate coverage after an accident.

In that situation, your insurer may help pay for covered losses that the other driver’s insurance would have paid if they had enough coverage. The amount available depends on your UM/UIM coverage limits, policy terms, and state rules.

Uninsured/underinsured motorist (UM/UIM) coverage can be divided into two main types, each designed to protect you and your passengers in different ways:

• Uninsured/underinsured motorist bodily injury (UMBI/UIMBI): This type of coverage helps pay for medical expenses, lost wages, and other injury-related costs for you and your passengers when the at-fault driver either has no insurance (uninsured) or insufficient coverage (underinsured). It also provides protection if you’re a pedestrian injured by an uninsured or underinsured driver.
• Uninsured/underinsured motorist property damage (UMPD/UIMPD): This coverage assists in covering the cost of repairs to your vehicle or other damaged property after an accident caused by an uninsured or underinsured driver. In some states, UMPD coverage may also cover damage caused by a hit-and-run driver.

Uninsured/underinsured motorist coverage requirement by state

UM/UIM coverage requirements vary by state. Some require uninsured motorist coverage, underinsured motorist coverage, or both. In other states, it’s optional. Check with your insurance agent, broker, or representative to determine whether you need coverage and, if so, what amounts.

What states require uninsured motorist coverage?

These states require uninsured motorist coverage, or require it to be included in certain auto policies:

• Connecticut
• District of Columbia
• Illinois
• Indiana
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Hampshire
• New Jersey
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• Virginia
• West Virginia
• Wisconsin

What states require underinsured motorist coverage?

States that require underinsured motorist coverage, or require it to be included in certain auto policies, include:

• Connecticut
• Kansas
• Maine
• Maryland
• Minnesota
• Nebraska
• North Carolina
• North Dakota
• Oregon
• South Dakota
• Vermont
• Virginia

States where underinsured motorist coverage may be optional include Arizona, California, Colorado, District of Columbia, Hawaii, Illinois, Indiana, Kentucky, Massachusetts, Michigan, Nevada, New Hampshire, New Jersey, Ohio, South Carolina, Utah, and West Virginia.

Requirements vary by state and can change over time. Check with your state insurance department or a licensed insurance agent to confirm the requirements where you live.

Uninsured and underinsured motorist (UM/UIM) coverage can protect you from potential financial hardship after an accident with an at-fault driver who lacks insurance or has insufficient liability coverage. It helps cover medical expenses, vehicle repairs, lost wages, and, in some cases, pain and suffering.

Think of it as an extra layer of security if the other driver’s insurance falls short.