Uninsured Motorist Coverage: What It Pays For and Do You Need It?
About one in seven U.S. drivers is uninsured. Uninsured and underinsured motorist coverage pays your bills when they hit you. Here is how it works and the states where it matters most.
You can drive carefully, carry good insurance and still end up with thousands of dollars in bills because the driver who hit you had no insurance at all. Uninsured motorist coverage exists for exactly that situation, and it matters more than many drivers realize.
How many drivers are uninsured?
The Insurance Research Council (IRC) estimates that 15.4% of U.S. motorists were uninsured in 2023, more than one in seven drivers. The IRC doesn't count uninsured drivers directly; it estimates the rate from the ratio of uninsured motorist claims to bodily injury claims.
The risk depends heavily on where you live:
| Highest uninsured rates (2023) | % | Lowest uninsured rates (2023) | % |
|---|---|---|---|
| Mississippi | 28.2% | Maine | 5.7% |
| New Mexico | 24.1% | Utah | 6.2% |
| District of Columbia | 23.1% | Idaho | 6.4% |
| Michigan | 22.3% | Wyoming | 6.7% |
| Tennessee | 21.3% | Montana | 7.2% |
| Missouri | 20.7% | West Virginia | 7.8% |
| Florida | 20.6% | Massachusetts | 7.9% |
| California | 20.4% | New York | 8.6% |
| Colorado | 19.7% | South Dakota | 9.4% |
| Washington | 19.1% | Nebraska | 9.5% |
Source: Insurance Research Council 2025 study, via the Insurance Information Institute.
In several of the most populous states, including California and Florida, roughly one driver in five is uninsured.
UM vs. UIM: what each one pays
- Uninsured motorist (UM) coverage reimburses you if an uninsured or hit-and-run driver hits you.
- Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to fully cover your loss. This matters because many drivers carry only their state's minimum limits.
Depending on your state and policy, these coverages can include bodily injury protection (medical bills, lost wages and other injury-related losses for you and your passengers) and property damage protection for your car.
Why your own liability coverage doesn't help
Liability coverage only pays for damage you cause to others. When someone else causes the crash, you are supposed to be paid by their liability insurance. If they don't have any, or have too little, your liability coverage pays nothing toward your own injuries. That is the gap UM/UIM fills.
Is it required?
According to the NAIC, some states require uninsured and underinsured motorist coverage, while in others it is optional. In some states that don't require it, insurers must offer it and you have to reject it in writing if you don't want it. Check your declarations page to see whether you have it and at what limits.
How much to buy
- Match your liability limits. A common approach is to carry UM/UIM at the same limits as your own bodily injury liability.
- Think about your health coverage. If you have a high-deductible health plan, UM bodily injury coverage can be especially valuable.
- Consider your passengers. UM/UIM can also protect the people riding with you.
- Check property damage options. If you don't carry collision coverage, UM property damage, where available, can cover damage to your car caused by an uninsured driver.
For help with the rest of your policy, see how much car insurance you need and the types of car insurance coverage.
If an uninsured driver hits you
- Call the police and get a report, especially for a hit-and-run.
- Collect information: the other driver's name, license, plate and any witnesses.
- Get medical care and keep every bill and record.
- Notify your insurer promptly and ask how your UM/UIM coverage applies. Policies often have deadlines for reporting.
Frequently asked questions
Does uninsured motorist coverage cover hit-and-run accidents?
According to the NAIC, uninsured motorist coverage reimburses you if an uninsured or hit-and-run driver hits you. Policy terms vary by state, so check how your policy defines a hit-and-run and what proof it requires.
What's the difference between UM and UIM?
UM applies when the at-fault driver has no insurance. UIM applies when the at-fault driver has insurance, but not enough to cover your losses. Many insurers sell them together.
Do I need uninsured motorist coverage if I have health insurance?
Health insurance can cover your medical bills, but UM/UIM bodily injury coverage can also pay for things like lost wages and pain and suffering, depending on your state and policy. It can also cover your passengers.
How much uninsured motorist coverage should I buy?
A common approach is to match your UM/UIM limits to your own liability limits, so you are protected from other drivers as well as you protect them from you.
Sources
- Facts + Statistics: Uninsured motorists, Insurance Information Institute (citing the Insurance Research Council, 2025 study)
- What Does Auto Insurance Cover? (June 11, 2026), NAIC
- A Consumer's Guide to Auto Insurance, NAIC
Sources were checked on October 14, 2026. Laws, fees and prices change; always confirm with your state agency or insurer.