Uninsured or under-insured motorists can be a problem. For example, if you get in an accident, and the other driver doesn’t have enough insurance coverage to pay for your repairs and medical bills, you could face extremely high costs and/or lengthy court battles. However, by purchasing stand-alone uninsured (UM) or underinsured (UIM) motorist coverage—or by adding the coverage as an endorsement to your umbrella policy—you can be more fully protected on the road.

Why Isn’t There Coverage?

Auto insurance is required in most states because all drivers on the road essentially put their trust in one another to not get into an accident. But not every driver has insurance, and some don’t have enough coverage. If another driver doesn’t have enough coverage to fully pay for the damage of an accident, you could be left to pay the bills yourself.

  • Uninsured motorists simply don’t purchase an auto insurance policy. As a result, if they cause an accident, there isn’t a policy in place to reimburse you for medical bills. According to the Insurance Research Council, approximately 1 in 7 drivers in the United States are completely uninsured.
  • Underinsured motorists have an insurance policy, but don’t have a high enough coverage limit to pay for all of the expenses of an accident. Some states only require a small amount of coverage, which won’t be enough to pay all of your medical expenses.

It’s also important to know that hit-and-run accidents—those in which a driver flees—fall into the same category as uninsured motorists, as there is no insurance policy in place to cover the other driver’s liability.

Coverage Specifics

Although uninsured and underinsured drivers are all too common, many people believe that they’re already covered if someone else causes an accident. And that’s not true. Without UM or UIM coverage, you’re essentially paying more for the protection of strangers than you are for yourself and your family.

Additionally, depending on the state, you may only be required to purchase a small amount of UM or UIM coverage. However, since these policies will protect you and your family in the event of an accident, it’s generally a good idea to purchase the same amount of coverage as your regular auto policy.