Most drivers assume that if they’re in an accident, the other person’s insurance will take care of
everything. Unfortunately, that’s not always how it works. In fact, a surprising number of drivers
on the road either have no insurance at all or carry only the minimum coverage required by
law—which may not be enough to cover serious damages.
That’s where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage come in.
These two types of protection can quietly save you from major financial stress after a crash.

What Is Uninsured Motorist Coverage?
Uninsured Motorist coverage helps pay for your expenses if you’re hit by a driver who has no
insurance at all.
It typically covers:

• Medical bills for you and your passengers
• Lost wages due to injury
• Pain and suffering (in many states)
• Sometimes hit-and-run accidents, depending on your policy
  Without UM coverage, you may be left trying to recover costs directly from the at-fault driver—
  which is often difficult or impossible if they don’t have insurance.

What Is Underinsured Motorist Coverage?
Underinsured Motorist coverage applies when the at-fault driver does have insurance—but not
enough to cover your total damages.
For example:

• Your medical bills: $50,000
• Other driver’s liability coverage: $25,000
  Without UIM coverage, you could be stuck paying the remaining $25,000 out of pocket. With it,
  your policy helps cover the gap (up to your limits).

Why This Coverage Matters More Than You Think
Even though auto insurance is required in most states, not everyone follows the rules. Studies
consistently show that a significant percentage of drivers are uninsured or underinsured.
That means:

• You can do everything right and still get hit by someone with no coverage
• Serious injuries can quickly exceed basic liability limits
• Your health insurance may not cover all accident-related costs
• You could face long-term financial strain after a crash
  UM/UIM coverage acts like a financial backup plan when the other driver can’t pay.

Is It Required?
In some states, UM coverage is required. In others, it’s optional—but insurance companies often
include it automatically unless you reject it in writing.
Even when it’s optional, many insurance professionals recommend keeping it. It’s usually
relatively affordable compared to the protection it provides.

How Much Coverage Should You Have?
There’s no universal answer, but a good rule of thumb is:

• Match your UM/UIM limits to your liability coverage
• Consider higher limits if you have:
  o A long commute
  o High medical expenses or dependents
  o Limited emergency savings
  o A newer or financed vehicle
  Your insurance agent can help you decide what fits your situation.

How to Check Your Policy
If you’re not sure whether you have UM/UIM coverage, here’s what to look for:

• Your declarations page (often called the “dec page”)
• Policy sections labeled “Uninsured Motorist” or “Underinsured Motorist”
• Coverage limits listed in dollar amounts (e.g., 50/100, 100/300)
  If it’s not listed, you may not have it—or it may have been waived.

The Bottom Line
Uninsured and underinsured motorist coverage is one of those protections you hope you never
need—but can be extremely valuable when you do.
It won’t prevent accidents, but it can prevent a bad situation from becoming a financial disaster.
If you’re unsure whether you have it, reviewing your policy or calling your insurance provider is
a quick step that could make a big difference later.