What Is Uninsured and Underinsured Motorist Coverage?
Uninsured motorist (UM) coverage pays you when you are hurt, or your car is damaged, by an at-fault driver who has no insurance; underinsured motorist (UIM) coverage pays when the at-fault driver's insurance is not enough to cover your losses. Some states require drivers to carry it, while others require insurers to offer it and let you turn it down, usually in writing. Whether it covers property damage as well as injuries, and the limits available, vary by state.
What the law says
- The California Department of Insurance says uninsured/underinsured motorist coverage covers you if you are in an accident with a driver who does not have any liability insurance or is underinsured; uninsured motorist bodily injury (UMBI) pays for injuries to you and anyone in your car when an uninsured driver is at fault. California Department of Insurance, Automobile Insurance consumer guide (Form 901, February 2025)
- In California, underinsured motorist (UIM) coverage covers limited bodily injury costs when the other driver does not have enough insurance to pay for damages. UMBI limits can be the same as or lower than your liability limits. California Department of Insurance, Automobile Insurance consumer guide (Form 901, February 2025)
- California's uninsured motorist property damage (UMPD) coverage pays for damage to your car from an accident with an at-fault uninsured driver if you do not have collision coverage; the limit is $3,500, and it pays only if the uninsured driver is identified. California Department of Insurance, Automobile Insurance consumer guide (Form 901, February 2025)
- California says the insurance company must offer UM/UIM coverage; if you choose not to buy it, you must sign a waiver form stating you were offered the coverage and turned it down. California Department of Insurance, Automobile Insurance consumer guide (Form 901, February 2025)
- The Texas Department of Insurance says UM/UIM pays if you are hit by someone who didn't have insurance or didn't have enough to pay your medical and car repair bills, and also pays in a hit-and-run accident. Insurers must offer it, and if you don't want it you must tell the company in writing. Texas Department of Insurance, Auto insurance guide
- Texas says you must pay a deductible for collision, comprehensive, and uninsured/underinsured motorist claims. Texas Department of Insurance, Auto insurance guide
- New York requires uninsured motorists coverage to register a car. It covers injuries to you, your family, or your passengers in a hit-and-run accident or an accident with an uninsured vehicle, up to $25,000 for one person and $50,000 for two or more people in one accident. Supplementary uninsured motorist coverage, which also covers underinsured drivers, is optional. New York State Department of Financial Services, Purchasing Automobile Insurance
- New Jersey's Standard Policy requires a minimum amount of uninsured/underinsured motorist coverage; you can buy higher limits, but not more than your liability limits. The Basic Policy does not include it. New Jersey Department of Banking and Insurance, Everything Auto Insurance (2026)
- In New Jersey, uninsured and underinsured motorist coverage pay for property damage or bodily injury, and claims paid under either exclude the first $500 in damages. Underinsured coverage pays the difference when damages exceed the other driver's policy limits. New Jersey Department of Banking and Insurance, Everything Auto Insurance (2026)
- Florida's Department of Financial Services says Florida law requires uninsured motorist coverage to be stacked unless rejected in writing; to choose non-stacked limits, an Uninsured/Underinsured Motorist Rejection form must be completed and given to the insurer. Florida Department of Financial Services, Personal Automobile Insurance Overview
FAQ
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage applies when the at-fault driver has no insurance. Underinsured motorist coverage applies when the at-fault driver is insured but has less coverage than your losses; in New Jersey, it pays the difference above the other driver's policy limits, up to your own UIM limit.
Is uninsured motorist coverage required?
It depends on the state. New York requires it to register a car, and New Jersey's Standard Policy requires a minimum amount. In California and Texas, insurers must offer it, but you can turn it down.
How do I turn down uninsured motorist coverage?
In Texas, you must tell the insurance company in writing. In California, you must sign a waiver form saying you were offered the coverage and turned it down.
Does uninsured motorist coverage pay for damage to my car?
In some states. California offers uninsured motorist property damage coverage up to $3,500 for drivers without collision coverage, and says you may not need it if you have collision coverage.
Does it cover hit-and-run accidents?
The Texas Department of Insurance says UM/UIM coverage also pays if you're in a hit-and-run accident. New York's required uninsured motorists coverage also covers hit-and-run injuries.
How much uninsured motorist coverage can I buy?
It varies by state. In New Jersey, UM/UIM coverage is sold together and is available up to the liability limits you select.
Related
- What Is an SR-22?
- What Does Full Coverage Car Insurance Mean?
- What Is No-Fault Car Insurance?
- Car Insurance & Vehicle Laws by state
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.