Uninsured Motorist Coverage Explained: What It Is and How It Works

By Laurel C. Yazzie | Last reviewed: August 2026

Every driver on the road makes a silent assumption: if someone else causes an accident, their insurance will cover the damage. The reality is more complicated. Millions of drivers operate without valid coverage, and if one of them hits you, you could be left paying out of pocket for medical care and repairs that were never your responsibility. That is where uninsured motorist coverage comes in.

Uninsured Motorist Coverage: Uninsured motorist coverage (UM) is an auto insurance add-on that pays for your medical bills, lost wages, and car repairs when the driver who hit you has no insurance or too little insurance to cover your costs. It also covers hit-and-run accidents. Some states require it; others make it optional.

Having worked directly with clients on auto claims involving uninsured drivers, the most common misconception I encountered was that personal health insurance alone would handle everything after such an accident. It does not cover lost wages or pain and suffering, and those gaps can become a serious financial burden.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage is the part of your auto policy that protects you when the at-fault driver in an accident has no insurance. It steps into the role that the other driver’s liability insurance should have played but didn’t.

According to the National Association of Insurance Commissioners (NAIC), 15.4% of motorists, or roughly one in seven drivers, were uninsured in 2023. That means every time you drive, there is a meaningful chance that the person who could hit you has no coverage at all.

Uninsured motorist coverage typically comes in two forms:

• Uninsured Motorist Bodily Injury (UMBI): Pays for medical expenses, lost wages, and pain and suffering for you and your passengers after an accident with an uninsured at-fault driver.
• Uninsured Motorist Property Damage (UMPD): Pays to repair or replace your vehicle if an uninsured driver damages it. Not available in all states.

Uninsured Motorist Coverage vs. Underinsured Motorist Coverage

These two terms are closely related but describe different situations. Understanding which one applies can help you know exactly what protection you carry.

Uninsured motorist (UM) coverage applies when the at-fault driver has no insurance at all. In most states, it also applies when you are the victim of a hit-and-run and cannot identify the other driver.

Underinsured motorist (UIM) coverage applies when the at-fault driver has some insurance, but their policy limits are not high enough to pay for all your losses. For example: a driver with a $25,000 bodily injury limit causes $60,000 in medical bills. UIM coverage bridges that gap, up to your own policy limit.

In many states, UM and UIM are sold together as a bundled coverage. In others, you may need to add them separately. Check your declarations page or contact your insurer to confirm which you carry.

What Does Uninsured Motorist Coverage Pay For?

From a practical standpoint, UM coverage is designed to replicate what the at-fault driver’s liability insurance would have paid. That includes a broader range of expenses than most people expect.

UMBI typically covers:

• Medical bills and hospital expenses for you and your passengers
• Follow-up care, physical therapy, and rehabilitation
• Lost wages if your injuries prevent you from working
• Pain and suffering compensation
• Funeral expenses in cases of wrongful death

UMPD covers repair or replacement costs for your vehicle when an uninsured driver damages it, up to your selected limit. UMPD is not available in every state and may carry its own deductible. If you already carry collision coverage, you may not need UMPD, since collision pays for vehicle damage regardless of whether the other driver was insured.

Does UM Coverage Apply If You Are Hit as a Pedestrian or Cyclist?

This is one of the most overlooked aspects of uninsured motorist coverage, and the answer surprises many people. In most states, UMBI extends to you as a person, not just as a vehicle occupant. If an uninsured driver strikes you while you are walking, jogging, or riding a bicycle, your own UM bodily injury coverage can still apply.

The reason is straightforward: UM coverage is designed to replace the liability protection the at-fault driver should have carried. If that driver would owe you damages whether you were in a car or on foot, your UM coverage generally steps in the same way. Coverage rules vary by state and by policy, however, so review your declarations page or contact your insurer to confirm how your specific plan handles pedestrian and cyclist injuries.

Is Uninsured Motorist Coverage Required in Your State?

As the NAIC explains, some states require both UM and UIM coverage, others require only one, and some leave the decision entirely to the driver. State laws change, so always confirm current requirements with your state’s department of insurance.

States that currently mandate UM coverage include Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, Wisconsin, and Washington, D.C., among others. Some of these also require UIM coverage.

Even where UM coverage is optional, passing on it carries real risk. When reviewing policies for clients in states without a mandate, the situations that left drivers most exposed were almost always the ones where they had waived UM to reduce their premium and then faced an accident with an uninsured driver.

A Simple Decision Framework

Use these rules to decide whether to add UM coverage to your policy:

• If you carry liability insurance only, with no collision coverage: UMPD is essential. Without it, you have no way to pay for vehicle damage caused by an uninsured driver.
• If you already carry collision and comprehensive coverage: Your collision policy covers vehicle damage regardless of who was at fault. But UMBI is still worth adding, because health insurance does not cover lost wages or pain and suffering.
• If you want maximum protection: Carry both UMBI and UMPD at limits that match or exceed your liability limits, regardless of what your state requires.

For a closer look at how your base policy is structured, see our comparison of liability vs full coverage options. Understanding what you already carry is the first step toward identifying the gaps UM coverage is designed to fill. You can also review what your auto policy covers across all standard coverage types.

How to File an Uninsured Motorist Claim

Filing a UM or UIM claim works differently from a standard at-fault accident, since you are working with your own insurance company rather than the other driver’s. Here is the general process:

1. Report the accident to the police immediately. A police report is often required for a UM claim, especially after a hit-and-run. Get the report number before you leave the scene.
2. Document everything at the scene. Photograph the damage, your vehicle, and any visible injuries. Collect contact information from witnesses.
3. Notify your insurer as soon as possible. Most policies require you to report a potential UM claim within a specific time window. Delays can complicate or jeopardize your claim.
4. Confirm the other driver is uninsured. Your insurer may request written proof that the at-fault driver had no coverage or insufficient coverage, such as a denial letter from the other driver’s insurer.
5. Keep records of all losses. Save every medical bill, repair estimate, and documentation of missed work. These records support your claim value during the adjustment process.

For a complete overview of how all coverage types work together, see our auto insurance guide.