Is having uninsured motorist insurance worth it?

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Yes, uninsured motorist (UM) coverage is widely considered worth the cost because it protects you from paying out of pocket if an at-fault driver has no insurance or is a hit-and-run driver.

Why Uninsured Motorist Coverage Is Worth It

  • High Uninsured Rates: Over 15% of drivers in the U.S. drive without any car insurance.
  • Covers Medical Bills: It pays for your medical expenses, rehabilitation, and funeral costs if an uninsured driver hits you.
  • Fills Gaps in Other Insurance: Standard health insurance or personal injury protection (PIP) may not cover lost wages, non-economic damages, or pain and suffering.
  • Protects Against Hit-and-Runs: It usually applies if you are the victim of a hit-and-run driver who cannot be identified.
  • Low Cost: This coverage is typically inexpensive relative to the massive financial protection it provides after a serious crash.

When You Might Not Need It (Or When It Varies)

  • State Requirements: It is legally mandatory in some states (like Maryland or Illinois), but optional in others.
  • Strong Personal Assets/Savings: If you have robust personal savings or an extensive personal umbrella policy, you might theoretically absorb risks, though a major accident can still drain funds quickly.
  • Property Damage vs. Bodily Injury: Make sure to check whether your state offers Uninsured Motorist Bodily Injury (UMBI) or Uninsured Motorist Property Damage (UMPD), as rules and deductibles differ. Many insurance experts like State Farm and Texas Department of Insurance recommend matching your UM limits to your standard liability limits.

What is the disadvantage of uninsured motorist coverage?

The main disadvantage of uninsured motorist coverage is that it increases your regular auto insurance premium.

Key Disadvantages

  • Higher Costs: Adding uninsured motorist (UM) or underinsured motorist (UIM) coverage raises your monthly or annual insurance bill.
  • Strict Policy Limits: Your payout is capped by the maximum limit you choose on your policy, meaning severe accidents with massive medical bills can still leave you paying out of pocket if costs exceed that limit.
  • Potential Claim Disputes: Even though you are filing a claim with your own insurance company, disagreements can still happen regarding who was at fault or what your injuries and damages are truly worth.
  • Deductibles: Some types of uninsured motorist property damage coverage may require you to pay a deductible before your vehicle repairs are covered.

You can check out State Farm for more details on how coverage risks work.

Is it good to reject uninsured motorist coverage?

Rejecting uninsured motorist (UM) coverage is generally not recommended because roughly 1 in 8 drivers in the U.S. carry no insurance at all, leaving you personally responsible for medical bills and repair costs if they hit you.

Why People Reject UM Coverage

  • Lower premiums: Skipping this option saves a small amount on your recurring auto insurance bill.
  • Perceived redundancy: Some drivers assume their own health insurance or collision coverage is enough.

Risks of Rejecting UM Coverage

  • Out-of-pocket medical bills: Standard health insurance may not cover lost wages, pain and suffering, or high deductibles, and health insurers often demand repayment out of any settlement.
  • No vehicle protection: Without uninsured motorist property damage or collision coverage, you pay for your own car repairs after a crash caused by an uninsured driver.
  • State mandates: Many states require UM coverage by law, meaning you cannot reject it even if you want to.

What happens if an uninsured driver gets hit by an insured driver?

An uninsured driver who gets hit by an insured driver (who is at fault) can file a claim against the insured driver's liability insurance, but they will also face severe legal penalties for driving without insurance.

Claims and Payouts

  • Property Damage: The uninsured driver can file a claim with the at-fault insured driver's property damage liability coverage to fix their car, though payouts are restricted by the policy limits.
  • Medical Bills: In at-fault states, the uninsured driver can file a claim against the insured driver's bodily injury liability. In no-fault states, uninsured drivers are typically expected to pay their own medical costs out of pocket if they lack required Personal Injury Protection (PIP).
  • Lawsuits: If damages exceed policy limits, the uninsured driver can try to sue the insured driver, but state laws and comparative fault rules may limit their ability to recover compensation.

Legal and Personal Consequences for the Uninsured Driver

  • Traffic Citations: Police will be called, and the uninsured driver will likely receive hefty fines, tickets, or a citation for driving without proof of insurance.
  • License and Registration Suspension: Most states will suspend the uninsured driver's driver's license and vehicle registration.
  • Vehicle Impoundment: The police may have the uninsured driver's car towed and impounded at the scene.

How much should uninsured motorist coverage cost?

Uninsured motorist (UM) coverage costs an average of about $5 to $11 a month, or roughly $67 to $136 per year for bodily injury protection.

Average Costs by Coverage Type

According to data analyzed by Forbes Advisor, average annual rates typically break down as follows:

  • Uninsured Motorist Bodily Injury (UMBI): $136 per year
  • Underinsured Motorist Bodily Injury (UIMBI): $90 per year
  • Uninsured Motorist Property Damage (UMPD): $36 per year
  • Underinsured Motorist Property Damage (UIMPD): $46 per year

How Much Coverage You Need

  • Match your limits: Experts recommend carrying the same amount of uninsured motorist coverage as your standard bodily injury liability limits (for example, $100,000 per person and $300,000 per accident).
  • Total percentage: UM/UIM coverage usually adds only about 3% to 5% to your total auto insurance bill, making it an affordable way to cover medical bills, lost wages, and car repairs if you are hit by an uninsured driver.
  • Opinions on Reddit are mixed; while some drivers rely strictly on personal health insurance, others emphasize that health insurance does not cover pain, suffering, or lost income the way UM coverage does.

Do You REALLY Need Uninsured Motorist Coverage?

9 related questions found

Is it better to have uninsured motorist coverage or collision coverage?

Neither is better because they serve completely different purposes; you ideally need both since Collision Coverage pays to fix your car from any crash, while uninsured motorist coverage pays for your medical bills if an uninsured driver hits you.

Core Differences

  • Collision Coverage: Pays to repair or replace your car after an accident with another car or object (like a fence or tree), no matter who is at fault. It also usually has a deductible.
  • Uninsured Motorist (UM) Coverage: Protects you from financial loss if an at-fault driver has no insurance or not enough insurance. Uninsured Motorist Bodily Injury (UMBI) pays for medical bills, lost wages, and pain and suffering. Uninsured Motorist Property Damage (UMPD) pays for car repairs, but is only available or used in certain states.

Which Should You Choose?

  • If choosing for vehicle damage (UMPD vs. Collision): Opinions on Reddit show a general consensus that Collision Coverage is broader and better because it covers single-car accidents, hit-and-runs, and at-fault crashes, whereas UMPD only applies if an identified driver is uninsured and at fault.
  • If choosing for personal protection: Uninsured motorist bodily injury coverage is critical because collision insurance never pays for your medical bills or lost wages.

What happens if an uninsured driver hits me?

If an uninsured driver hits you, you usually have to rely on your own auto insurance policy or sue the driver directly to pay for your vehicle repairs and medical bills.

Immediate Steps to Take

  • Call 911: Report the crash immediately so police create an official record.
  • Exchange details: Get the driver's name, contact info, driver's license, and license plate number, even if they lack insurance.
  • Document the scene: Take photos of vehicle damage, license plates, and the surrounding location.
  • Avoid roadside deals: Do not accept cash offers or promises to pay later instead of involving the police and insurance.

How Your Insurance Covers the Damage

  • Uninsured Motorist (UM) Coverage: If you bought UM coverage, your own insurance company steps in to pay for your medical bills, lost wages, and sometimes car repairs as if the other driver had liability insurance.
  • Personal Injury Protection (PIP) / No-Fault: In no-fault states, your own PIP coverage pays for your medical costs regardless of who caused the crash.
  • Collision Coverage: If you have collision insurance, it can pay to fix your car, though you still have to pay your deductible.

Suing the At-Fault Driver

  • You have the legal right to file a personal injury or property damage lawsuit against the uninsured driver.
  • The risk: Most drivers who do not carry insurance lack the financial assets or money to pay a court judgment, meaning winning a lawsuit might not result in you collecting any cash.

Do you need uninsured motorist coverage if you have full coverage?

Yes, you need uninsured motorist coverage even if you have "full coverage," because standard full coverage does not include it.

Why Full Coverage is Not Enough

  • Medical Bills: "Full coverage" typically means comprehensive and collision insurance. Collision pays to fix your car, but it does not pay for your medical bills if an uninsured driver hits you.
  • Bodily Injury: Uninsured motorist bodily injury (UMBI) coverage pays for your hospital visits, medical care, and lost wages.
  • Property Damage: While collision overlaps with uninsured motorist property damage (UMPD) for car repairs, UMBI for people is completely separate.

When You Still Need It

  • No Health Insurance: If you do not have health insurance, uninsured motorist coverage pays for your injuries after a crash.
  • Hit-and-Run: It protects you if a driver hits your car and flees the scene before you can get their name or insurance.
  • Underinsured Drivers: Many drivers carry only the state minimum limit. If their limit is too low for your total bills, underinsured motorist coverage pays the rest.
  • State Rules: Read your policy details or check resources like Allstate to see what your state requires.

What not to tell your insurance company?

Never admit fault, apologize, or downplay your injuries when speaking to an insurance adjuster after an accident.

Statements to Avoid

  • "I'm sorry" or "It was my fault": Insurers treat apologies as a legal admission of liability, which can reduce or eliminate your compensation.
  • "I'm fine" or "I'm not hurt": Adrenaline can mask severe conditions like internal bleeding or traumatic brain injuries that appear days later. Early statements that you are fine are used to deny later claims.
  • Guesses or speculation: Never estimate speeds, distances, or timing. Stick strictly to objective facts you know for certain.
  • Recorded statements: You can decline requests for a recorded interview until you consult legal counsel, as adjusters use these recordings to trap you in inconsistencies.

Safe Communication Guidelines

  • Provide only basic facts like the date, time, location, and your contact or policy details.
  • Refer the adjuster to a qualified Car Accident Lawyer to manage further discussions and protect your rights.

Is it worth suing an uninsured motorist?

Suing an uninsured motorist is usually not worth it unless that driver has significant personal assets or property.

When Suing Makes Sense

  • The driver has assets: If the person owns a home, has a high-paying job, or holds valuable investments, you can place a lien or garnish wages.
  • Damages are very high: If your costs exceed your own policy limits and the defendant can pay.

Why Suing Often Fails

  • Judgment-proof defendants: Most drivers without insurance have no money or property to collect ("you cannot squeeze water from a stone").
  • Wasted time and legal fees: Winning a court judgment does not guarantee you will get paid if there is no cash behind it.

Better Alternatives

  • Uninsured Motorist (UM) Coverage: File a claim through your own insurance policy first, which is faster and more reliable. You can check out details on Mayfield Law Firm for more on handling these options.
  • Other liable parties: An attorney can check if an employer, vehicle owner, or mechanic shares blame and has insurance. Read more insights on Gregory Yates regarding personal injury claims.