Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage steps in when the driver who caused your accident has no liability insurance. Underinsured motorist coverage activates when their liability limits are too low to cover your medical bills, lost wages, or vehicle damage. Both coverages pay through your own carrier, even though the other driver caused the crash. You file the claim with your insurer, and they pursue reimbursement from the at-fault driver separately.
- A driver runs a red light and totals your car. You have $8,000 in vehicle damage and $4,500 in medical bills. The at-fault driver has no insurance. If you carry uninsured motorist property damage and bodily injury coverage, your carrier pays both claims minus your deductible. Without it, you pay the full $12,500 out of pocket and pursue the driver in small claims court with no guarantee of recovery.
- You're rear-ended by a driver carrying Virginia's minimum $25,000 bodily injury limit. Your medical bills total $40,000 after surgery and physical therapy. Their liability pays the first $25,000. If you carry underinsured motorist coverage with a $50,000 limit, your policy pays the remaining $15,000. Without underinsured coverage, you absorb that $15,000 gap yourself.
- A driver sideswiped your parked car and fled. You have $3,200 in body panel and paint damage. Uninsured motorist property damage covers hit-and-run losses in most states, treating the phantom driver as uninsured. Your carrier pays the repair cost minus your deductible. Collision coverage also pays this claim, but uninsured motorist property damage typically carries a lower deductible.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry this coverage if you live in a state where more than 10 percent of drivers are uninsured, if you cannot afford to replace your vehicle out of pocket, or if your health insurance has high deductibles that would leave you exposed after a crash. Drivers financing a vehicle often find lenders require uninsured motorist coverage as a condition of the loan.
Compare the annual premium for uninsured motorist coverage to your out-of-pocket maximum under your health insurance plus your vehicle's replacement cost. If the coverage costs $150 per year and your vehicle is worth $12,000 with a $5,000 health deductible, the math favors carrying it. If your vehicle is worth $2,000 and you have comprehensive health coverage, the premium may exceed the realistic exposure.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured motorist coverage typically adds $8 to $18 per month to your premium, or $96 to $216 annually, depending on your coverage limits and location.
- Coverage limits you select — higher limits for bodily injury and property damage increase the monthly cost proportionally.
- Local uninsured driver rate — counties with higher percentages of uninsured motorists see higher premiums for this coverage.
- Your liability limits — carriers often cap uninsured motorist limits at your liability coverage amounts, so raising liability raises uninsured motorist cost.
- Deductible choice for property damage — uninsured motorist property damage may carry a deductible separate from collision, typically $200 to $500.
- Claim history — prior uninsured motorist claims can raise renewal rates even though you were not at fault.
- Stacking option — some states allow you to stack uninsured motorist limits across multiple vehicles on one policy, doubling or tripling the premium for that coverage.