Uninsured motorist coverage (UM) pays for your injuries — and in some states, your vehicle damage — when an at-fault driver has no auto insurance at all, or when you're the victim of a hit-and-run. It essentially stands in for the liability insurance the other driver should have had. Many states require it or require insurers to offer it, and it protects you, your passengers, and household family members.
How it works
If an uninsured driver injures you, you file a claim under your own uninsured motorist coverage instead of against the other driver's nonexistent policy. Your insurer then compensates you for medical bills, lost wages, and related damages up to your UM limits, much as the at-fault driver's bodily injury liability would have. Hit-and-run crashes are typically handled the same way when the driver can't be identified.
Example: you're stopped at a red light when a driver rear-ends you and it turns out he carries no insurance. Your injuries result in $30,000 in medical bills and lost wages. With uninsured motorist coverage of $100,000 per person, your own insurer pays the $30,000 claim. Without UM coverage, your only recourse would be suing an uninsured driver personally — who, statistically, rarely has assets worth pursuing.
UM coverage is usually written with per-person and per-accident limits mirroring bodily injury liability, and in some states you can also buy uninsured motorist property damage (UMPD) for your vehicle.
Why it matters for your policy
Despite insurance being legally required, some drivers on the road carry none — and you can't control which one hits you. UM coverage is the only piece of your policy specifically built for that scenario, and it's typically inexpensive relative to what it protects.
A sensible practice is matching your UM limits to your bodily injury liability limits: if you think $100,000/$300,000 is the right amount to protect others from you, the same amount is reasonable protection for you from an uninsured stranger. The common mistake is signing the state's UM rejection or reduction form to shave a small amount off the premium — often without realizing what was waived until after a hit-and-run.
Related terms
- Underinsured motorist coverage — The companion coverage for when the at-fault driver has some insurance, but not enough.
- Bodily injury liability — The coverage the other driver was supposed to carry — UM replaces it when they didn't.
- Medical payments coverage — Smaller no-fault medical coverage that can pair with UM.
- Personal injury protection — Broader no-fault injury coverage required in some states.
- Full coverage — What most people mean by a well-rounded auto policy — UM belongs in it.
Want a second set of eyes on your policy? Better Choice Insurance Group is an independent agency in St. Charles, Illinois, licensed in 14 states. We'll explain your coverage in plain English and compare quotes across our carriers — free, no obligation.
Frequently asked questions
Does uninsured motorist coverage pay for my car, too?
It depends on your state and policy. Uninsured motorist bodily injury (UMBI) covers injuries; some states also offer uninsured motorist property damage (UMPD) for your vehicle. If UMPD isn't available or isn't purchased, collision coverage is what fixes your car after an uninsured driver hits it.
Does uninsured motorist coverage apply to hit-and-run accidents?
In most states, yes — a hit-and-run driver who can't be identified is generally treated as uninsured for injury claims. Rules vary on property damage and some states require physical contact with your vehicle, so report any hit-and-run to the police and your insurer promptly.
Will using my uninsured motorist coverage raise my rates?
A UM claim is a not-at-fault claim, and many states restrict insurers from surcharging you for accidents you didn't cause. Practices vary by carrier and state, but fear of a rate increase is a poor reason to leave an injury from an uninsured driver uncompensated.
Last reviewed: August 2026 · Reviewed by Evan Larson, Licensed Insurance Agent