What Uninsured Motorist Coverage Should I Get
Match your uninsured and underinsured motorist limits to your bodily injury liability limits, and don't settle for less.
It exists because the other driver's promise to pay may be empty
Liability insurance only works if the person who hits you actually carries it, and carries enough of it. Uninsured motorist coverage is the part of your own policy that steps in when theirs doesn't exist or doesn't stretch far enough. It flips the protection around so your recovery depends on your choices, not a stranger's.
The reasoning for matching it to your liability limits is simple. You already decided how much injury liability protection feels right for your situation, your assets, your risk tolerance. There's no logic in protecting others at that level while protecting yourself and the people in your car at a lower one. The crash doesn't care whose fault it was.
Underinsured motorist coverage works the same way but covers the gap when the other driver has some insurance, just not enough. This matters more than people expect, because many drivers carry only the minimum their state requires, and a serious injury can cost far more than that minimum covers. Your policy makes up the difference up to your own limit.
Where this varies is state rules. Some states require you to carry this coverage, some make insurers offer it and let you decline in writing, and some treat it as fully optional. Whether it stacks with other vehicles on your policy, and whether it covers hit-and-run or property damage, also depends on your state and sometimes your insurer. Check your state's specific rule before you decide, rather than assuming it works the way a friend in another state described it.
Does uninsured motorist coverage cover my car, or just injuries?
In most states, standard uninsured motorist coverage pays for injuries to you and your passengers, not damage to your car. Your car damage in that situation is typically handled by your own collision coverage, if you carry it, regardless of who caused the crash.
Some states offer a separate uninsured motorist property damage coverage that fills that specific gap, especially useful if you don't carry collision coverage or have a high deductible on it. Whether this option exists, and what it costs to add, depends on your state and insurer. Check your state's offerings directly rather than assuming your policy includes it automatically.
Now that you know what level of protection you need, compare quotes to see what matching it actually costs.
What to decide before you set your limit
- Match your liability limit Set uninsured and underinsured motorist limits equal to your bodily injury liability limits. There's little reason to protect others more than you protect yourself.
- Check if it's required Some states require this coverage or require insurers to offer it. Confirm your state's rule so you know whether declining it needs a signed waiver.
- Decide on property damage Find out if your state offers uninsured motorist property damage coverage separately. If you don't carry collision coverage, this fills a real gap.
- Ask about stacking If you have more than one car on the policy, ask whether your state allows stacking limits across vehicles. This can meaningfully raise your available protection.
- Reconsider after the move Your new state may handle this coverage differently than your old one. Review it specifically, rather than assuming your old policy's structure carried over.
A hit-and-run at a red light
One driver in the couple was stopped at a red light when another car rear-ended them and drove off before anyone could get a plate number. There was no other insurance to file against. Because their policy had uninsured motorist coverage, and their state's version of it included hit-and-run situations, the claim went through their own insurer instead of stalling out with no path forward.
They had set their uninsured motorist limit equal to their liability limit when they first bought the policy, without thinking much about why. That decision ended up mattering, because the injuries took longer to resolve than expected and the costs climbed past what a lower limit would have covered. The claim paid out fully, and the only adjustment they made afterward was checking that the same limit carried over correctly when they updated their address after the move.
Do I need uninsured motorist coverage if I already have health insurance?
Health insurance covers your medical bills but not lost wages, pain and suffering, or a passenger's injuries, so uninsured motorist coverage still fills gaps health insurance doesn't touch. Health insurance may also expect reimbursement later from any settlement you receive. Check your health plan's rules on this before assuming the two overlap completely.
Is uninsured motorist coverage the same as collision coverage?
No, they cover different things and work independently. Uninsured motorist coverage generally pays for injuries when the other driver lacks enough insurance, while collision coverage pays for damage to your own car regardless of fault. You may want both, and whether either is required or optional depends on your state and your lender if you have a loan.
Can I decline uninsured motorist coverage to lower my payment?
In states where it's optional, yes, you can usually decline it or lower the limit, often by signing a written waiver. Whether that's wise depends on how much savings it actually produces versus the protection you'd lose. Check what declining actually costs you in premium before deciding, since the amount varies by insurer and by your other coverage choices.
