When Do You Need Uninsured Motorist Coverage on Your Vehicle?

Are you looking to update or purchase a new car insurance policy? Here’s food for thought: About 1 in 8 people behind the wheel in the U.S. is an uninsured or underinsured driver. So if your state doesn’t already require it, adding underinsured and uninsured motorist coverage can be a lifesaver. Why? Because without it, you may pay out of your own pocket for some or all of your car accident costs. And in 2023, 15.4% of drivers nationwide did not have car insurance, per the Insurance Research Council. And at least 1 in 5 drivers in these U.S. states were uninsured, according to iii.org:

• Mississippi – 28.2%
• New Mexico – 24.1%
• Washington, D.C. (District of Columbia) – 23.1%
• Michigan – 22.3%
• Tennessee – 21.3%
• Missouri – 20.7%
• Florida – 20.6%
• California – 20.4%

Keep reading to learn how UI/UIM coverage can protect you financially if you’re in a car accident and the other driver is uninsured or has too little coverage to pay your damages.

Uninsured and Underinsured Motorist Coverage: Key Takeaways

• If you’re hurt in an accident by someone driving without car insurance, uninsured motorist coverage may pay for medical bills, lost wages, and even property damage such as auto repairs.
• Drivers in most states must carry liability coverage by law, but do not have adequate insurance for serious car accidents.
• No matter what kind of car accident you’re in, you may potentially get up to 3.5x more money working with an auto accident lawyer.
• Purchasing UM/UIM coverage ensures you don’t have to lose money to cover your costs if the person who caused the accident has too little or no car insurance.

What is Uninsured Motorist Coverage?

Uninsured motorist (UM) coverage can help cover your medical expenses when the other driver has no car insurance. However, in some states, it only covers your medical bills, not your vehicle repair or replacement costs. That’s because there are two types of coverage offered under the UM insurance policy category:

• Uninsured motorist bodily injury (UBMI), which pays money towards medical bills in accidents caused by uninsured drivers
• Uninsured motorist property damage (UMPD), which helps cover the cost of vehicle repairs if you’re not at fault for accidents with an uninsured driver

The amount each policy covers can vary significantly by state and individual driver. In addition, it’s possible in many states to purchase both UMPD and collision coverage under the same insurance policy.

If you’re in a hit-and-run accident, UM/UIM coverage can also help with your medical and property damage costs in most states. Next, we’ll explain how UM differs from UIM coverage in your auto insurance policy.

Uninsured vs. Underinsured Motorist Coverage: What’s the Difference?

Underinsured motorist (UIM) coverage applies when the at-fault driver’s insurance pays too little to cover your losses. Not every state requires underinsured motorist coverage, but some do. So what is the difference between UM and UIM coverage, exactly? Here’s why you may wish to purchase UIM coverage on your vehicle, regardless of whether your state requires it:

• UIMBI coverage can help pay down medical bills for both you and your passengers caused by an underinsured driver’s negligence
• UIMPD coverage can cover property damage losses incurred by underinsured drivers that are greater than their liability policy limits

If you’re in a bad accident with an insured driver and your costs exceed the other person’s policy limitations, underinsured motorist coverage can help cover the difference.

What Does UI/UIM Coverage Typically Cover?

Drivers with UI/UIM bodily injury or property damage policies can receive money from their own insurance provider for:

• Medical bills, including hospital stays, doctor appointments, prescriptions, physical therapy, crutches, etc.
• Lost wages from taking unpaid time off work to recover from your injuries
• Pain and suffering, a form of non-economic damages attorneys might calculate by multiplying your medical bills 3x-5x
• Other related expenses, such as funeral and burial costs, long-term nursing care, hotel stays, or rental car fees

Underinsured motorist can also help you recoup the cost of copays, health insurance deductibles, and future earning capacity losses.

How Much Uninsured Motorist Coverage Do I Actually Need?

Each state’s individual statute governing UI/UIM policy limits may change as often as every calendar year. However, most states allow you to choose the coverage limits on your auto insurance policy. The amount you should aim to purchase in UMBI coverage should equal your bodily injury liability coverage for your state, such as Virginia.

To see those recommended UM/UIM coverage amounts for your own state, scroll down to our handy table below.

When purchasing UMPD coverage, we recommend choosing an amount based on your vehicle’s true replacement cost. Here’s an example: Let’s say your state’s minimum liability property damage coverage amount is $10,000. However, you drive a year-old Lexus SUV. Even for approved claims, $10k won’t go very far towards replacing your vehicle if an uninsured driver totals it.

How Uninsured and Underinsured Coverage Protects You In an Accident That’s Not Your Fault

If you haven’t been in an accident or filed a car insurance claim before, the reality may surprise you. Let’s say you’re stopped at a red light when another car rear-ends you. Unfortunately, momentum from that crash pushes you into the vehicle directly ahead, causing a three-car pileup. Surely the at-fault driver’s insurance will pay to fix your car and the one that it pushed you into, right?

Not so fast.

If you’re in a state with a low liability coverage requirement ($10,000), it’s unlikely to cover both repair bills.

Now, imagine that driver coming up behind you was going 50 mph when the collision occurred. You the scene in an ambulance, and now, you have a serious case of whiplash. In 2023, the National Safety Council estimated the cost of an evident injury ranging between $44,000 and $242,000.

However, for that same year, iii.org found car insurance providers paid an average of $26,178. That would leave you, the injured driver, with at least $17,822 and up to $215,822 to cover out of your own pocket! That’s when you really see the benefits of purchasing additional UM/UIM coverage, even if it’s not required.

Additional Car Insurance Coverage Options to Consider

Your state’s individual car accident laws determine what types of insurance you need to purchase and your coverage limits. However, there’s nothing stopping you from buying uninsured motorist coverage to protect yourself from underinsured drivers. Below are some examples you may wish to consider adding to your own car insurance policy.

Collision Coverage

If you’re financing or leasing your vehicle, you may have to purchase insurance with collision coverage. It’s not legally required in any U.S. state, but lenders can require it in order to protect their investment. Auto insurance collision policies can pay for property damage losses and vehicle repair costs from:

• Single-car accidents if you accidentally hit a parked car, street sign, or spin out on black ice
• Wrecks that involve colliding with other vehicles, regardless of which driver is at fault
• Underinsured or uninsured driver accidents as long as you’re not legally liable, minus your auto insurance deductible

Important: Collision doesn't pay for medical expenses or property damage from accidents that occur when you aren't driving. That includes things like striking a wild animal, hail damage, theft, or vandalism that damages or totals your car.

Liability Insurance Coverage

Licensed drivers in every state must carry liability insurance except for New Hampshire. In that state, you must show proof of financial responsibility according to Title 21, Ch. 264, §264:15 equal to:

• $25,000 in bodily injury coverage per person, or $50,000 per car accident
• $25,000 in property damage coverage per accident

Otherwise, liability insurance policies in every state set minimum coverage limits for two specific things. Those are bodily injury coverage, and property damage coverage.

Liability insurance protects you financially if you’re found liable for another person’s damages after a car accident. For bodily injury claims, the minimum fixed coverage amount in any state is $15,000 per person in PA. The highest required liability coverage amounts for bodily injury claims in any state is $50,000 (for AK and ME).

Personal Injury Protection (PIP) Coverage

PIP coverage is no-fault insurance that covers medical expenses and lost wages for anyone injured inside your vehicle during an accident. That means not just you, but also your passengers, even if they’re not insured themselves (either for health or auto). It can also pay for funeral and burial costs in the event of a fatal collision.

All no-fault states require drivers to carry PIP auto insurance in the event of a bodily injury claim liability dispute. The 16 no-fault states where you must purchase PIP coverage according to state law are:

• Delaware
• Florida
• Hawaii
• Kansas
• Kentucky*
• Maryland*
• Massachusetts
• Michigan
• Minnesota
• New Jersey
• New York
• North Dakota
• Oregon
• Texas*
• Utah
• Washington*

*These four states allow you to submit a written request to the insurance company waiving your right to PIP coverage when purchasing a policy.

Pro Tip: PIP insurance doesn't cover costs related property damage, injuries to others incurred while committing a crime (i.e., drunk driving), or medical expenses that fall outside the policy's dollar amount limits.

Comprehensive Coverage

This is optional coverage designed to protect your vehicle from damage due to non-collision events. Here are some examples of accidents where you’d need comprehensive auto insurance coverage to pay your damages:

• Bad weather knocks down a tree in your yard, damaging the roof of your truck
• You accidentally strike a deer who runs out into the road, shattering your windshield
• Your car’s stolen and wrecked by some teenagers who decided to go joyriding
• Area wildfires total your truck while you’re out of town
• Flash flooding damages your vehicle so much that your insurance provider says it’s totaled

Important: No state requires comprehensive insurance coverage by law. However, lenders may require this type of coverage for leased or financed vehicles you're still paying off.

Which States Require UI/UIM Coverage on All Vehicles?

In 2026, more than 20 states and the District of Columbia require uninsured motorist coverage, UIM coverage, or both:

State	UM/UIM Bodily Injury Minimum Coverage Limits	UM/UIM Property Damage Minimum Coverage Limits
Connecticut	$25,000 per person, or $50,000 per accident	$25,000
Illinois	$25,000 per person, or $50,000 per accident	$20,000
Indiana	$25,000 per person, or $50,000 per accident	$25,000
Kansas	$25,000 per person, or $50,000 per accident	optional, but not required
Maine	$50,000 per person, or $100,000 per accident	optional, but not required
Maryland	$30,000 per person, or $60,000 per accident	$15,000
Massachusetts	$25,000 per person, or $50,000 per accident	$30,000
Minnesota	$25,000 per person, or $50,000 per accident	$10,000
Missouri	$25,000 per person, or $50,000 per accident	$25,000
Nebraska	$25,000 per person, or $50,000 per accident	$25,000
New Jersey	$35,000 per person, or $70,000 per accident	$25,000
New York	$25,000 per person, or $50,000 per accident	$10,000
North Carolina	$50,000 per person, or $100,000 per accident	$50,000
Oregon	$25,000 per person, or $50,000 per accident	$20,000
Rhode Island	$25,000 per person, or $50,000 per accident	$25,000
South Carolina	$25,000 per person, or $50,000 per accident	$25,000
South Dakota	$25,000 per person, or $50,000 per accident	$25,000
Vermont	$50,000 per person, or $100,000 per accident	$10,000
Virginia*	$30,000 per person, or $60,000 per accident	$20,000
West Virginia	$25,000 per person, or $50,000 per accident	$25,000
Wisconsin	$25,000 per person, or $50,000 per accident	$10,000
Washington, D.C.	$25,000 per person, or $50,000 per accident	$10,000

*According to Virginia Code 46.2, Ch. 3, § 46.2-472, you must carry uninsured motorist coverage by law unless you explicitly reject it in writing.

Other states require insurance providers to offer this type of coverage, but don’t make purchasing it mandatory for drivers.

Important: NH drivers that choose to purchase car insurance must include UM/UIM coverage on their auto policies.

Talk to a Car Accident Lawyer About Maximizing Your Settlement Offer

In nearly every case, if you’re hurt in an accident that isn’t your fault, an attorney can get you a higher settlement. In fact, car insurance industry reports show you’re likely to get 350% more money with attorney involvement.

LegalASAP can connect you with an experienced auto lawyer in your state who understands how to maximize your payout.

Submit a free short evaluation form here to see if you qualify for free auto accident claim assistance. You’ve got nothing to lose and a lot more money to potentially keep afterwards!

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