Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when another driver causes a crash but can't pay for the damage. UM applies when the at-fault driver has no insurance at all. UIM applies when they have insurance, but their liability limits are too low to cover your medical bills or vehicle repairs. Both coverages pay out from your own policy, not the other driver's, and you file the claim with your own carrier.
- You're stopped at a red light. The driver behind you doesn't brake in time and hits you at 35 mph. You have $8,000 in medical bills and $6,500 in vehicle damage. The other driver has no insurance. Your UM coverage pays both the medical bills and the vehicle damage up to your policy limits, minus your deductible if your policy includes one for property damage UM.
- Another driver runs a stop sign and T-bones your car. You suffer a broken collarbone and need surgery. Your medical bills total $42,000. The at-fault driver carries Rhode Island's minimum liability limit of $25,000 per person. Their insurer pays the $25,000 maximum. Your UIM coverage pays the remaining $17,000, bringing you to full recovery of your documented costs.
- A car swerves into your lane on the highway, forcing you off the road into a guardrail. The other driver leaves the scene. You have $11,000 in vehicle damage and no witnesses. Most UM policies require physical contact between vehicles for hit-and-run claims. Without proof of contact—paint transfer, collision damage to both vehicles—your UM coverage likely won't pay, and you'd file under collision coverage instead if you carry it.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
Carry UM/UIM if you drive frequently in areas with high uninsured driver rates, if you don't have health insurance that covers car accident injuries without subrogation, or if your vehicle is worth more than a few thousand dollars and you can't afford to replace it out of pocket. It's also critical if you carry passengers regularly—your liability coverage protects others when you're at fault, but UM protects you and your passengers when someone else is.
Compare your UM/UIM limits to your liability limits and your health insurance deductible. If the at-fault driver has no coverage and you have no UM, you're left suing an uninsured driver for a judgment they likely can't pay. If your health insurance has a $5,000 deductible and UM coverage costs $12 a month, you're paying $144 a year to avoid a potential $5,000 to $50,000 out-of-pocket loss. Most drivers in states where it's optional should carry it at limits matching their liability coverage.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM/UIM coverage typically adds $8 to $18 per month to your premium, or roughly $95 to $215 annually, depending on the limits you select and your driving record.
- Coverage limits—higher UM/UIM limits cost more, and stacking coverage across multiple vehicles on the same policy increases the premium further.
- Your liability limits—most carriers require UM/UIM limits to match or stay below your liability limits, so raising liability raises the cost ceiling for UM/UIM.
- Claim history—prior UM claims, even when you weren't at fault, can increase your premium at renewal because the insurer paid out on your policy.
- Vehicle value—some carriers price UM property damage coverage based on your car's actual cash value, so insuring a newer or higher-value vehicle costs more.
- State uninsured driver rate—carriers price UM/UIM higher in states where a larger percentage of drivers carry no insurance or minimum-only policies.