Uninsured motorist coverage and underinsured motorist coverage (UM/UIM)

The amount of underinsured motorist coverage (UIM) you need depends on your individual circumstances, but a good rule of thumb is to consider carrying at least the same amount of UIM coverage as you have liability insurance. For example, if you have $100,000 in liability insurance, consider having $100,000 in UIM coverage. Some states have minimum UIM requirements. Check with your state insurance department for UIM limit requirements.

Uninsured motorist coverage typically pays for damages caused by uninsured drivers up to your policy limit.

Generally speaking, uninsured motorist coverage is a good idea for everyone, even if you have collision and comprehensive coverage. While some states require it, other states make it optional. If you live in a state where it’s optional, there may be a few reasons why you might think you don’t need uninsured motorist (UM) coverage.

• You have health insurance. If you have health insurance, you may think that you don’t need UM coverage to help cover your medical expenses if you’re in an accident with an uninsured driver. However, health insurance typically doesn’t cover all of the costs associated with a car accident, such as lost wages, pain and suffering, and property damage. UM coverage can help to cover these additional costs resulting from an accident with an uninsured driver.
• The uninsured motorist rate is high. The cost of UM coverage can be high, especially if you live in a state with a lot of uninsured drivers. If you’re on a tight budget, you may think that you can’t afford UM coverage. However, without the coverage, you may be stuck paying for your medical bills and vehicle repairs out of your own pocket if you are injured or your vehicle is damaged in an accident with an uninsured driver.
• You think you’re a safe driver. If you’re a safe driver, you may think that you’re less likely to be in an accident with an uninsured driver. However, accidents can happen even to safe drivers and sometimes they may be caused by an uninsured driver. In fact, according to a 2021 study by the Insurance Research Council, one in eight drivers in the United States in 2019 were uninsured.

The term “full coverage insurance” can vary depending on the insurance company and the state, but it typically includes liability coverage, comprehensive and collision coverage. It can also include UM/UIM if required by your state. However, even in situations where UM/UIM is not required by the state, it is highly recommended for all drivers.

Yes, uninsured motorist insurance (UM) can cover hit-and-run accidents. Uninsured motorist insurance is designed to help pay for your medical expenses, lost wages, pain and suffering, and property damage if you’re injured in an accident by an uninsured or underinsured driver. In some states, uninsured motorist coverage will not cover damage to your vehicle if the at-fault driver flees the scene. For those states, collision coverage can help cover the damage resulting from a hit-and-run.