Uninsured Motorist Coverage by State

Uninsured Motorist Coverage by State: Complete Guide

Uninsured and underinsured motorist coverage (UM/UIM) is your safety net when the at-fault driver can't pay for your damages. Understanding how UM/UIM works in your state could be the difference between full compensation and financial disaster.

Understanding UM/UIM Coverage

What Is Uninsured Motorist Coverage?

UM coverage protects you when:

• An at-fault driver has no insurance
• A hit-and-run driver can't be identified
• The at-fault driver's insurer is insolvent

What Is Underinsured Motorist Coverage?

UIM coverage applies when:

• The at-fault driver has insurance
• But their coverage is insufficient for your damages
• Your UIM fills the gap

What UM/UIM Covers

Depending on your policy:

• UM Bodily Injury (UMBI): Your injuries from uninsured driver
• UM Property Damage (UMPD): Your vehicle damage
• UIM Bodily Injury: Injuries exceeding at-fault coverage
• UIM Property Damage: Property damage exceeding at-fault coverage

States That Require UM Coverage

Mandatory UM States

These states require uninsured motorist coverage:

States Where UM Must Be Offered

Many states require insurers to offer UM even if not mandatory:

How UM/UIM Works

Filing a UM Claim

When to file:

1. At-fault driver has no insurance
2. At-fault driver fled (hit-and-run)
3. At-fault insurer is insolvent
4. Your damages exceed their coverage (UIM)

The Claims Process

1. Report accident to your insurer
2. Notify of UM claim (may be same notification)
3. Provide documentation (medical bills, damages)
4. Insurer investigates fault and damages
5. Negotiate settlement with your own insurer
6. Arbitration if you can't agree (in many states)

UM Claim Considerations

Important points:

• You're claiming against your own insurer
• They still investigate fault and damages
• May feel adversarial despite being your company
• Attorney may help with disputes

Stacking vs. Non-Stacking

What Is Stacking?

Stacking means combining UM coverage from:

• Multiple vehicles on your policy
• Multiple policies you hold
• Household members' policies

Example of Stacking:

• Two cars with $100,000 UM each
• Stacked: $200,000 available coverage
• Non-stacked: $100,000 maximum

States Allowing Stacking

States Prohibiting Stacking

Underinsured Motorist Coverage

When UIM Applies

UIM kicks in when:

• At-fault driver has insurance
• Their limits are less than your damages
• Example: They have 25/50, your damages are $100,000

Trigger Methods

States use different triggers:

Damages trigger:

• UIM applies when damages exceed at-fault coverage
• More common and favorable to consumers

Limits trigger:

• UIM applies only if at-fault limits are lower than your UIM limits
• Less favorable to consumers

Reducing vs. Non-Reducing UIM

Reducing (offset):

• Your UIM reduced by amount collected from at-fault
• Example: $100K UIM - $25K collected = $75K available

Non-reducing (true excess):

• Your UIM pays on top of at-fault coverage
• Example: $100K UIM + $25K from at-fault = $125K total

Hit-and-Run Coverage

UM and Hit-and-Runs

Most UM policies cover hit-and-runs:

• Driver flees and can't be identified
• No license plate or witness identification
• Vehicle damage from unidentified vehicle

Hit-and-Run Requirements

Some states require:

• Physical contact with the fleeing vehicle
• Police report within specific timeframe
• Witness corroboration
• Diligent effort to identify driver

States with Physical Contact Requirement

UM Coverage Recommendations

How Much UM to Carry

General recommendations:

• Match your liability limits at minimum
• Consider $100,000/$300,000 or higher
• Maximum available if you have significant assets
• Umbrella policy may extend UM

Cost Considerations

UM coverage typically:

• Costs $20-$50 per 6-month term
• Relatively inexpensive protection
• Worth far more than the premium
• Best value coverage available

Common UM Issues

Disputes with Your Insurer

Even though it's your own company:

• They may dispute fault
• They may undervalue your claim
• Arbitration may be required
• Consider attorney for serious injuries

Consent to Settle

Many policies require:

• You notify insurer before settling with at-fault
• Insurer must consent to the amount
• Preserves subrogation rights
• Failure to follow may void UIM coverage

Subrogation Rights

After paying your UM claim:

• Insurer may pursue the uninsured driver
• If successful, may recover what they paid
• You may share in recovery (for deductible, etc.)

State-Specific Issues

Florida UM

• Not required but must be offered
• Can be stacked (inter-policy)
• UMPD has $500 deductible
• Must offer bodily injury and property damage separately

California UM

• Must be offered; can reject in writing
• Covers economic damages primarily
• Arbitration for disputes
• No stacking allowed

Texas UM

• Must be offered; UM/UIM combined
• Can reject in writing
• UIM uses difference method (reducing)
• PIP separate from UM

New York UM

• Mandatory 25/50 minimum
• Supplementary UM (SUM) available for higher limits
• No-fault rules affect when UM applies
• Must meet serious injury threshold for pain and suffering

Key Takeaways

• About 12.6% of drivers nationwide are uninsured
• 20+ states require UM coverage; most others require it be offered
• UM covers you when hit by uninsured drivers or hit-and-runs
• UIM covers the gap when at-fault driver's coverage is insufficient
• Stacking can multiply your available coverage in some states
• UM/UIM is typically the best value coverage—don't skip it
• Consider matching UM/UIM to your liability limits

For more on insurance, see our guides on Minimum Coverage by State and At-Fault vs No-Fault States.