Not every driver on US roads carries enough insurance. That creates a serious risk even if you drive carefully. Uninsured/underinsured motorist coverage helps protect you when the at-fault driver has no policy or very low limits.
Uninsured Motorist (UM)
UM coverage applies when the at-fault driver has no insurance, or in some states, in certain hit-and-run situations. It helps pay for your medical bills, lost wages, and other damages when the other driver cannot because they have no coverage.
Underinsured Motorist (UIM)
UIM coverage applies when the at-fault driver has insurance, but their limits are too low to cover your injuries and losses. If your medical bills exceed their policy limits, UIM fills the gap.
Why It Matters
- Medical costs can exceed state minimum liability limits quickly
- You can be financially harmed even when you are not at fault
- UM/UIM often costs less than many drivers expect
How Much Should You Carry?
A common approach is matching UM/UIM limits to your bodily injury liability limits. Pair this with State Minimum Auto Insurance Explained so your policy is both legally compliant and realistically protective.
Bottom Line
UM/UIM is often one of the highest-value coverages for the premium paid, especially in areas with many uninsured drivers. Adding this protection to your policy is usually inexpensive and can prevent major financial hardship after an accident caused by an uninsured or underinsured motorist.