Uninsured motorist coverage provides safety when crashes happen with drivers without or very little insurance, and it helps pay medical bills and the liability gap.

This coverage helps close the gap if you have an accident with a driver who doesn’t have enough insurance, keeping your finances safe. Some plans mix uninsured and underinsured protection for complete safety, but others let you change them depending on the common risks in your state.

With one out of eight drivers without insurance, this critical coverage protects you from surprises, giving you calmness after a crash. Make smarter choices with a practical guide for understanding car insurance insights. Avoid expensive premiums by using our free comparison tool to find the lowest rates possible.

What You Should Know

• Uninsured motorist coverage shields against 12.6% uninsured drivers
• Covers medical and property costs from uninsured motorists
• Protects when underinsured drivers can’t cover full accident costs

Underinsured and Uninsured Motorist Coverage Defined

An uninsured motorist is a driver who despite the requirement to carry vehicle insurance, does not have it. The definition of an underinsured motorist can vary from state to state, but is commonly considered to be one who carries insurance, but his or her coverage has liability limits that are too low to meet the costs associated with an accident.

The minimum coverage limits for liability insurance differ from one state to the next, and can be quite low — especially when considering any medical expenses in an accident.

Accidents with uninsured drivers cause big money problems, affecting people who have insurance and the whole economy. The table below shows significant numbers about costs, how often claims happen, and trends in coverage all over the U.S.

Uninsured Motorist Statistics and Costs

The table shows uninsured drivers causing a yearly economic loss of $28 billion. The average claim cost is about $20,000, and medical bills are around $30,000 per accident. Adding coverage for uninsured motorists often costs just $5-$15 each month, giving financial safety against these high costs.

Even with these expenses, 12.6% of drivers nationwide still need insurance. This problem is worse in Mississippi because 29.4% of drivers are uninsured, which is higher than in New Jersey, where only 3.1% lack insurance – the lowest rate in the nation.

Across America, one claim involves an uninsured motorist for every seven accidents. This situation causes premiums to go up by about 10-15% for those who do have car insurance.

Read more: Is uninsured motorist coverage worth it?

Bundled or Separate Motorist Coverage Options

Some insurers will “bundle” uninsured and underinsured driver coverage together as one addition to your policy, while others may offer them separately. Talk to your carrier or agent about what the risks are in your state — if there are a high number of uninsured drivers and the state’s liability limits are low, your agent might recommend coverage for both.

A number of states require uninsured motorist coverage, and a few even require drivers to carry underinsured motorist coverage as well. Discover essential steps to handling an accident with an uninsured driver effectively.

Insurance companies generally offer uninsured motorist bodily injury coverage, and uninsured motorist property damage coverage. Underinsured motorist policies cover the shortage between what the at-fault motorist’s liability limits are, and the cost of the damage.

Understanding How Coverage Works in an Accident

When you are in an accident and you are not at fault, the other driver’s insurance coverage pays for the damage and injuries that resulted. If you are in an accident and the other driver is at fault, but he or she is uninsured, if you have uninsured motorist coverage, your insurance company will pay for the damages and injuries, up to your policy’s limits.

Nearly 1 in 8 drivers is not insured. Uninsured motorist coverage helps protect you financially from these drivers https://t.co/mtyWMwB5cF pic.twitter.com/LAhjMWDrqM

— Clearsurance (@clearsurance) September 27, 2017

If you are in an accident caused by another driver and the damages exceed the limits of the liability coverage of the other driver, your insurance company will cover the difference, if you are carrying underinsured motorist coverage.

Learn more by checking out our guide: [What is the penalty for driving without insurance?](https://clearsurance.com/blog/penalty-for-driving-without-insurance)

In essence, uninsured and underinsured coverage is a protection against being responsible for paying the bills of an accident that wasn’t your fault. See which companies have the cheapest rates for you by entering your ZIP code in our free comparison tool.

## Frequently Asked Questions

### What does “uninsured” mean?
An “uninsured” driver operates a vehicle without the required liability insurance, leaving others at risk of financial losses in case of an accident. Discover [what kind of car insurance you really need](https://clearsurance.com/blog/what-kind-of-car-insurance-do-you-really-need) to stay protected.

### What are uninsured costs?
Uninsured costs are expenses you must pay after an accident with an uninsured driver, including medical bills, vehicle repairs, and lost wages.

### What does comprehensive coverage mean?
Comprehensive coverage pays for non-collision-related damages to your vehicle, such as theft, vandalism, weather damage, or hitting an animal. Enter your ZIP code to get personalized insurance quotes tailored to your needs and budget.

### Who is insured in an insurance policy?
In an insurance policy, the insured typically includes the policyholder, listed drivers, and sometimes household members, depending on the coverage terms.

### How does uninsured motorist coverage work in Maryland?
In Maryland, uninsured motorist coverage pays for medical bills and property damage if you’re in an accident caused by a driver without adequate insurance up to your policy limits. Learn about [what Medical Payments (MedPay) insurance is and what it covers](https://clearsurance.com/blog/what-is-medical-payments-medpay-insurance), including medical bills after an accident.

### Do you need uninsured motorist coverage if you have collision and comprehensive in Colorado?
Yes, uninsured motorist coverage is recommended in Colorado because it covers medical costs and lost wages when an uninsured driver causes an accident, which collision and comprehensive do not.

### Do you need uninsured motorist coverage if you have collision and comprehensive in Texas?
Yes, uninsured motorist coverage in Texas protects medical expenses and underinsured drivers, which collision and comprehensive do not cover.

### How does an uninsured motorist work in Virginia?
In Virginia, uninsured motorist coverage compensates for injuries and property damage caused by drivers without insurance, protecting you from financial losses.

### Can you waive uninsured motorist coverage in Maryland?
Yes, uninsured motorist coverage can be waived in Maryland, but doing so leaves you financially exposed if you’re in an accident with an uninsured driver. Find the [best and cheapest car insurance in Maryland](https://clearsurance.com/best-car-insurance/MD) tailored to your needs and budget.

### How does an uninsured motorist work in Michigan?
In Michigan, uninsured motorist coverage helps pay for injuries caused by an uninsured driver, supplementing the state’s no-fault system for better protection.

### Do you need uninsured motorist coverage if you have collision and comprehensive in Louisiana?
Yes, uninsured motorist coverage is vital in Louisiana to cover medical expenses and gaps not addressed by collision and comprehensive coverage.

### Do you need uninsured motorist coverage if you have collision and comprehensive in Illinois?
In Illinois, uninsured motorist coverage protects injuries and lost wages caused by uninsured drivers, which collision and comprehensive do not.

### Why do you need uninsured motorist coverage in Florida?
Uninsured motorist coverage in Florida is crucial because 20% of drivers lack insurance, and this coverage protects you from medical and financial hardships in accidents. Compare plans for the [best and cheapest car insurance in Florida](https://clearsurance.com/best-car-insurance/FL) and maximize your savings.

### How do you reject uninsured motorist coverage in Colorado?
To reject uninsured motorist coverage in Colorado, you must provide a written request to your insurer, acknowledging the risks of opting out.

### Can you reject uninsured motorist coverage in Texas?
Yes, you can reject uninsured motorist coverage in Texas by signing a waiver, but this leaves you vulnerable to significant out-of-pocket costs.

### How does collision coverage work?
Collision coverage pays for repairs or replacement of your vehicle after an accident, regardless of fault, up to your policy limits.

### Can you reject uninsured motorist coverage in Virginia?
Yes, uninsured motorist coverage can be rejected in Virginia, but it’s risky as you’ll bear all costs if an uninsured driver causes an accident. Explore the [best and cheapest car insurance in Virginia](https://clearsurance.com/best-car-insurance/VA) to save money and stay protected.

### What is the deductible for uninsured motorists in Maryland?
The deductible for uninsured motorist coverage in Maryland varies but is typically set by your policy terms. Check your agreement for specific details.

### What happens if an uninsured driver hits you in Michigan?
If hit by a Michigan driver, your uninsured motorist coverage can pay for injuries and supplement the state’s no-fault benefits.

### Is uninsured motorist insurance required by the law in Virginia?
Virginia law mandates uninsured motorist coverage unless the driver pays a $500 uninsured motorist fee, which offers no financial protection after an accident.

### How much uninsured motorist coverage do you need in California?
In California, carrying enough uninsured motorist coverage to match your liability limits is recommended, ensuring protection for medical and repair costs. Start comparing affordable insurance options by entering your ZIP code into our free quote comparison tool today.