What Is Uninsured Motorist Coverage and Do I Need It?

Uninsured motorist coverage pays for your injuries and, in some states, vehicle damage if you're hit by a driver who has no auto insurance. Underinsured motorist coverage applies when the at-fault driver has insurance, but not enough liability coverage to cover your losses. 

Although not required in every state, these coverages can help protect you from high out-of-pocket costs after an accident. It’s important to review your state's requirements and compare coverage options before deciding whether to add uninsured or underinsured motorist coverage.

Roughly one in seven drivers does not carry auto coverage, and depending on where you live, it jumps to one out of five.¹

Uninsured motorist coverage helps pay for injuries and, in some states, damage to your vehicle after an accident caused by an uninsured driver. Coverage generally includes uninsured motorist bodily injury (UMBI) and, where available, uninsured motorist property damage (UMPD).²

Coverage limits, deductibles, and availability vary by state and insurance company.³

Uninsured motorist coverage protects against losses caused by uninsured or underinsured drivers, but it doesn't cover every situation.

Common exclusions include the following:

Reviewing these limitations can help you determine whether you also need collision or comprehensive coverage.

Uninsured motorist coverage applies when a driver with no insurance injures you or, if you carry underinsured motorist coverage, by a driver whose liability limits are too low to fully cover your damages. Some policies also cover qualifying hit-and-run accidents.²

Common situations include:

• You're injured by an uninsured driver.

• An underinsured driver causes damages that exceed their liability limits.

• You're involved in a qualifying hit-and-run accident.

• You're a passenger in a covered vehicle struck by an uninsured driver.

• Depending on your policy and state law, you're struck while walking or riding a bicycle.

Some states require uninsured motorist coverage, while others allow drivers to reject it. However, even where it's optional, UM/UIM coverage is often recommended because it protects you if the at-fault driver has little or no insurance.

The likelihood of encountering an uninsured or underinsured driver is higher than you might think. In fact, according to the Insurance Research Council, one in three drivers nationwide was either uninsured or underinsured in 2023.⁴

Whether it's right for you depends on factors such as:

• Whether your state requires UM/UIM coverage.

• The percentage of uninsured drivers in your area.

• Your ability to pay accident-related expenses out of pocket.

• Your existing liability, health, collision, and other insurance coverages.

It’s important to evaluate your state's requirements, your existing insurance, and your financial situation before deciding how much uninsured motorist coverage to carry.

Weighing those factors is easier when you can see your options. Luva lets you compare available quotes across insurers side by side, so you can decide with real numbers.

Carry at least the amount required by your state. If coverage is optional, many insurers recommend purchasing limits that match your bodily injury liability coverage or are high enough to protect you financially after a serious accident.

Once you know your state's minimum, Luva makes it easy to compare quotes so you can see what it actually costs to bump your protection higher.

Uninsured motorist bodily injury (UMBI) coverage typically doesn't have a deductible. However, uninsured motorist property damage (UMPD) may include a deductible in some states, with the amount determined by state law or your insurance policy.

Review your policy to understand whether a deductible applies before filing a claim.

Filing an uninsured motorist claim doesn't automatically increase your premium because you weren't at fault for the accident. However, insurers use different rating methods, and state laws may affect whether a not-at-fault claim influences your premium.

If you're concerned about the impact of a claim, ask your insurer how not-at-fault claims are handled in your state.

Uninsured motorist coverage is generally one of the less expensive auto insurance coverages, but the cost varies based on your state, coverage limits, driving history, vehicle, and insurer. Because insurers bundle coverages differently, it's difficult to identify the cost of UM/UIM coverage separately from your total premium.⁵

Although the cost varies, uninsured motorist coverage can provide valuable financial protection if you're injured by a driver with little or no insurance.⁵