Do I Need Uninsured Motorist Coverage?

Uninsured motorist (UM) coverage is one of the most important — yet often overlooked — components of a car insurance policy. Many drivers decline it to save a few dollars, only to discover after a crash that they’re stuck paying out-of-pocket because the at-fault driver didn’t carry insurance.

In this article, we’ll explain what uninsured motorist coverage is, how it works, and why having it could save you from financial disaster. If you’re asking, “Do I really need uninsured motorist coverage?” — the short answer is yes. Here’s why:

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage protects you when you’re injured by an uninsured motorist in a crash caused by a driver who has no auto insurance. Even though most states require drivers to carry liability insurance, many people drive uninsured. If they cause a crash, they won’t have insurance to cover your injuries or damages — and that’s where UM coverage comes in.

UM coverage typically includes two types:

• Uninsured Motorist Bodily Injury (UMBI): Covers medical expenses, lost wages, pain and suffering, and funeral costs.
• Uninsured Motorist Property Damage (UMPD): Pays to repair or replace your vehicle when hit by an uninsured driver (availability and rules vary by state).

How Common Are Uninsured Drivers?

According to the Insurance Research Council, approximately 1 in 8 drivers in the U.S. is uninsured. In some states, like Mississippi, Michigan, and Tennessee, that number is significantly higher. Even in states with stricter laws, uninsured driving remains a serious risk.

In California, for example, the estimated uninsured motorist rate is around 16%, meaning there’s a 1 in 6 chance the driver who hits you won’t have insurance.

What If the At-Fault Driver Has No Insurance?

If you’re in a crash caused by an uninsured driver and you don’t have UM coverage, you may be left with:

• Emergency room bills
• Follow-up care expenses
• Lost income from time off work
• Long-term disability costs
• Out-of-pocket repair or replacement costs for your vehicle

Without UM, your only options are:

1. Sue the driver personally — unlikely to result in meaningful compensation, as uninsured drivers often lack assets and the means to pay your claim.
2. Pay the expenses yourself — which can bankrupt victims of serious injuries.

Uninsured motorist coverage protects you from this situation. It steps in and acts as if the other driver had insurance, covering your damages up to your policy limits.

Uninsured vs. Underinsured Motorist Coverage

While similar, underinsured motorist (UIM) coverage is distinct. It applies when the at-fault driver has liability insurance, but not enough to cover all your losses. UIM fills the gap between their policy limits and your actual damages.

Example:

• At-fault driver has $15,000 in liability coverage.
• Your medical bills are $75,000.
• Your UIM coverage can pay the remaining $60,000 (up to your policy limits) along with pain and suffering damages.

Most insurance companies offer UM/UIM together as a combined endorsement. You should carry both.

What Does UM Coverage Typically Include?

Uninsured motorist coverage generally pays for:

• Medical expenses for you and your passengers
• Lost income if you’re unable to work
• Pain and suffering damages
• Disability and rehabilitation costs
• Funeral expenses (in fatal accidents)
• Vehicle repairs (if you have UMPD or collision coverage)

Unlike health insurance, UM/UIM doesn’t require you to meet a deductible for medical expenses, and it covers losses that health insurance won’t — like pain and suffering or wage loss.

Why Liability Insurance Alone Isn’t Enough

Your auto liability coverage protects other people if you’re at fault. But it doesn’t pay your own medical bills if an uninsured driver hits you. You might assume your health insurance will cover everything, but:

• Health insurance has deductibles, co-pays, and exclusions.
• It doesn’t cover lost income or non-economic damages such as pain, suffering, and emotional distress.
• You’ll be responsible for repayment if you recover funds through a lawsuit (subrogation).

UM coverage fills those gaps, often at a low cost compared to the protection it provides.

What Happens During a UM Claim?

If you’re hit by an uninsured driver and you file a UM claim:

1. You notify your own insurance company.
2. They investigate liability and damages, just like a third-party claim.
3. You provide documentation: medical bills, income loss, car repair estimates, etc.
4. They offer a settlement, or your lawyer negotiates or files a lawsuit.
5. If needed, arbitration or litigation resolves disputes over fault or value.

Importantly, your insurance company becomes your adversary during a UM claim. They may try to minimize your payout — which is why many claimants hire personal injury lawyers to protect their rights.

What Limits Should I Choose for UM Coverage?

In most states, your UM coverage limits must match your liability coverage limits unless you sign a waiver. Experts recommend:

• Minimum: Match your liability limits (e.g., $100,000 per person / $300,000 per accident)
• Better: Higher limits if you drive frequently or live in a state with high uninsured rates
• Best: Add umbrella coverage if your assets or earning potential are substantial

The cost difference between low and high UM limits is usually modest — often just a few dollars more per month — and well worth it for the added protection.

Is Uninsured Motorist Coverage Required?

Requirements vary by state:

• Required: In states like Connecticut, Illinois, Maryland, and New York, UM is mandatory.
• Optional: In states like California and Texas, you must be offered UM, but you can decline it in writing.
• Not offered: A few states do not require insurers to offer UMPD, or they allow policyholders to reject it.

Regardless of legal requirements, you should carry it. The risk of being hit by an uninsured driver far outweighs the minimal cost of coverage.

Common Myths About Uninsured Motorist Coverage

Myth 1: I Have Health Insurance, So I Don’t Need UM

Fact: Health insurance doesn’t cover wage loss, pain and suffering, or vehicle damage. UM does.

Myth 2: It’s Too Expensive

Fact: UM/UIM coverage is generally inexpensive. It can cost under $100/year for significant limits.

Myth 3: It Only Applies If I’m Driving

Fact: UM covers you as a driver, passenger, pedestrian, or cyclist—even if you’re not in your own vehicle.

Why You Shouldn’t Decline UM Coverage

If you’re ever hit by someone who:

• Has no insurance,
• Flees the scene (hit-and-run),
• Carries only the bare minimum limits,

…your uninsured/underinsured motorist coverage is what will protect you.

Without it, you may be on the hook for thousands—or even hundreds of thousands—of dollars in medical bills and lost income. For a small increase in your premium, you gain peace of mind, financial protection, and legal leverage.

Final Thoughts: Yes, You Absolutely Need Uninsured Motorist Coverage

The roads are filled with risks—and uninsured drivers are one of the biggest. You can’t control what kind of insurance the other driver has, but you can protect yourself with the right coverage.

Uninsured motorist coverage is not just a smart financial decision—it’s essential for anyone who wants full protection after a car accident. Review your policy today and talk to your insurance agent or personal injury attorney about the right level of coverage.

Don’t wait until it’s too late.

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