Uninsured motorist coverage and underinsured motorist coverage are two of the more confusing types of car insurance coverage. In some states these coverages are required, so you have no choice but to add them to your car insurance policy.
In other states the coverage is optional, but it doesn’t cost very much, and it’s generally worthwhile.
Here’s what you need to know to decide whether to buy this protection.
What is uninsured motorist coverage?
Uninsured motorist coverage helps pay for any injuries caused to you or your passengers in an accident involving an uninsured driver, or a hit and run. Underinsured motorist coverage kicks in when you’re hit by a driver who has some insurance, but not enough to cover your medical costs.
Uninsured and underinsured motorist property damage coverage does the same for damage to your car and other property. This coverage is not available in all states.
Shopping for coverage? Compare car insurance quotes with NerdWallet’s car insurance comparison tool.
Who needs uninsured motorist insurance?
Uninsured motorist insurance is required in 19 states and the District of Columbia. Most of those states also mandate underinsured motorist coverage.
| State | Requires Uninsured Motorist Coverage | Requires Underinsured Motorist Coverage |
|---|---|---|
| * For those who choose to buy insurance. ** For policies with uninsured motorist coverage limits above $30,000 per person and $60,000 per accident. |
||
| Connecticut | X | X |
| Illinois | X | X |
| Kansas | X | |
| Maine | X | X |
| Maryland | X | X |
| Massachusetts | X | X |
| Minnesota | X | X |
| Missouri | X | |
| Nebraska | X | X |
| New Hampshire* | X | X |
| New Jersey | X | X |
| New York | X | |
| North Carolina | X | X** |
| North Dakota | X | X |
| Oregon | X | X |
| South Carolina | X | |
| South Dakota | X | X |
| Vermont | X | X |
| Virginia | X | X |
| Washington, D.C. | X | |
| West Virginia | X | |
| Wisconsin | X | |
Some states not listed in the table above require auto insurance companies to include uninsured and underinsured motorist coverage in policies unless drivers specifically decline it.
One in eight drivers has no insurance
Even if uninsured motorist coverage is not required where you live, remember that the odds of getting hit by an uninsured driver might be greater than you think. About 12.6% of drivers nationally — or one in eight — did not have coverage in 2012, according to the latest data from the Insurance Research Council. In Oklahoma, Florida and Mississippi, roughly one in four drivers lacked coverage. Adding uninsured motorist coverage can be an easy way to strengthen your car insurance policy and provide long-term security against irresponsible motorists.
The map below shows which states have the highest and lowest percentages of uninsured drivers.
How much is uninsured motorist coverage?
To gauge how much uninsured and underinsured motorist coverage adds to your premium, NerdWallet sampled rates in three states. Here is how much it cost to add this coverage:
| State | Coverage choice | Avg. annual premium | Cost of adding coverage |
|---|---|---|---|
| California | Policy with no uninsured motorist coverage | $1,181 | |
| Policy with 100/300 uninsured motorist coverage | $1,288 | $107 | |
| Policy with 100/300 uninsured motorist coverage and underinsured motorist coverage | $1,288 | $107 | |
| Illinois | Policy with no uninsured motorist coverage | $1,216 | |
| Policy with 100/300 uninsured motorist coverage | $1,235 | $19 | |
| Policy with 100/300 uninsured motorist coverage and underinsured motorist coverage | $1,241 | $25 | |
| Pennsylvania | Policy with no uninsured motorist coverage | $953 | |
| Policy with 100/300 uninsured motorist coverage | $975 | $22 | |
| Policy with 100/300 uninsured motorist coverage and underinsured motorist coverage | $1,008 | $55 |
The cost of adding uninsured motorist coverage ranged from an average of less than $2 a month in Illinois and Pennsylvania to about $9 a month in California. The cost of adding underinsured motorist protection to uninsured motorist coverage was negligible in Illinois and California and about $3 a month more in Pennsylvania.
Uninsured motorist coverage is typically worth it
The average car-crash-related trip to the emergency room costs about $3,300, according to the Centers for Disease Control and Prevention. Without uninsured motorist coverage on your policy, you (and your passengers) could be on the hook for your own medical treatment if hit by an uninsured driver. Even with health insurance, you could be stuck paying high out-of-pocket deductibles and coinsurance. Plus, uninsured motorist coverage can cover certain things that health insurance won’t, such as wage reimbursement if an injury forces you miss work.
For most drivers, the potential benefit of this type of coverage is well worth the relatively low cost.
Check out NerdWallet’s quote comparison tool for help getting full coverage auto insurance at the best possible price.
Methodology
NerdWallet researched car insurance rates for 30-year-old men and women in 10 ZIP codes in each of the three states above for the largest insurers, with policy limits of 100/300/50 and collision and comprehensive coverage, 100/300 in uninsured motorist bodily injury coverage and PIP (except in Illinois). We used a 2012 Toyota Camry and averaged the four lowest rates. Your own rates will be different. Data on state requirements is from the Insurance Information Institute.
This post was updated. It was originally published on June 16, 2015.
Alex Glenn is a staff writer for Nerdwallet, a consumer finance website. Email: aglenn@nerdwallet.com. NerdWallet staff writer Aubrey Cohen contributed to this story.
Image via iStock.
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