Uninsured motorist coverage pays for your medical bills and vehicle damage if you’re hit by a driver without insurance, while underinsured motorist coverage helps pay if you’re hit by a driver without adequate coverage. Both auto insurance coverages can provide important financial protection against unexpected out-of-pocket costs, and may even be required by your state.
Difference Between Uninsured and Underinsured Motorist Coverage
While they serve similar purposes, uninsured and underinsured motorist coverage apply in different situations.
- Uninsured motorist coverage applies if you’re in an accident with an at-fault driver who doesn’t have a current auto insurance policy. It may also step in if you’re a victim of a hit-and-run accident.
- Underinsured motorist coverage applies if the at-fault driver has car insurance, but not enough to cover your damages.
Together, these coverages can offer a safeguard against the financial impact of an auto accident, regardless of the insurance status of the at-fault driver.
What is underinsured motorist coverage?
Underinsured motorist coverage is a critical component of a comprehensive auto insurance policy. This coverage protects you when an at-fault driver carries insufficient insurance to cover your damages. It kicks in to bridge the gap between the at-fault driver’s policy limits and the actual costs of your injuries and property damage, helping to ensure that you’re not left to shoulder the financial burden alone.
What is uninsured motorist coverage?
Uninsured motorist coverage is designed to protect you if you’re involved in an accident with an at-fault driver who lacks auto insurance. Despite most states requiring auto insurance for drivers, according to the Insurance Information Institute, one in seven drivers are uninsured, and this number is even higher in certain states – for example, in New Mexico, nearly one in four motorists are uninsured.
With the large number of uninsured drivers on the road, uninsured motorist coverage is important to help ensure you’re not left financially vulnerable if the at-fault driver lacks auto insurance.
Types of Uninsured Motorist Coverage
Uninsured motorist coverage provides protection in two main forms: Uninsured Motorist Bodily Injury (UMBI), which covers medical costs associated with the accident, and Uninsured Motorist Property Damage (UMPD), which covers damage to your vehicle.
Uninsured Motorist Bodily Injury
Uninsured Motorist Bodily Injury (UMBI) coverage is designed to protect you from the financial burden of medical expenses if you or your passengers are injured in an accident in which an uninsured driver is at fault. If this does happen, without UMBI coverage, you could find yourself responsible for covering your own medical bills, which can quickly add up and create significant financial strain. UMBI can help pay for medical treatments, rehabilitation and even lost wages if your injuries prevent you from working.
Uninsured Motorist Property Damage
Uninsured Motorist Property Damage (UMPD) coverage can help cover the costs of repairing or replacing your vehicle after an accident with an at-fault uninsured driver. This coverage is designed to help you avoid hefty out-of-pocket expenses for vehicle repairs and the hassle of making a claim against an at-fault driver who can’t afford to pay for the damages. It’s important to note that auto policies may require the insured to pay a deductible before this coverage kicks in.
Importance of Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage and underinsured motorist coverage are both indispensable for road protection, particularly in states with higher-than-average uninsured driver rates like New Mexico, Mississippi, Tennessee, Kentucky and Georgia.
While these two coverages protect against different risks, both provide essential financial safeguards against accidents with at-fault uninsured or underinsured drivers by helping to cover medical expenses and vehicle repairs.
Uninsured motorist coverage is required for drivers in many states, with requirements for limits varying by state. While you should check your state’s insurance code or consult with your insurance broker to verify the most up-to-date coverage requirements, as of 2025, states that require uninsured motorist coverage include:
- Connecticut
- Illinois
- Kansas
- Maine
- Maryland
- Massachusetts
- Minnesota
- Missouri
- Nebraska
- New Jersey
- New Hampshire*
- New York
- North Carolina
- North Dakota
- Oregon
- Rhode Island**
- South Carolina
- South Dakota
- Vermont
- Virginia*
- Washington, D.C.
- West Virginia
- Wisconsin
*While New Hampshire and Virginia do not require auto insurance for drivers, if it is purchased, it must include uninsured motorist coverage.
**Uninsured motorist coverage is not required in Rhode Island if a driver carries the state minimum limits; if a driver does not, they must purchase uninsured motorist coverage.
Is your auto insurance sufficient?
By choosing the right coverage limits and consulting with insurance professionals like those at Higginbotham, you can drive with greater peace of mind. To learn more about Higginbotham’s personalized service model and to get a free quote, talk to one of our personal auto insurance specialists today.
