HomeAuto InsuranceAffordable Uninsured or Underinsured Auto Insurance Coverage (2024)

Affordable Uninsured or Underinsured Auto Insurance Coverage (2024)

What You Should Know

  • Uninsured or underinsured motorist (UM/UIM) insurance can be purchased for as low as $30 per month
  • UM/UIM insurance covers collisions with uninsured or underinsured drivers
  • In most states, UM/UIM insurance is a requirement for drivers to drive legally

Wondering how to find affordable uninsured or underinsured auto insurance coverage? UM/UIM insurance coverages are required in most states, along with minimum auto insurance coverage,  and are practical to have even if not required. The majority of companies will offer cheap UM/UIM insurance as an add-on to your policy, and comparing rates can help you save even more.

Read on to learn about UM/UIM coverage requirements, how to find affordable rates, and more. Then, once you are ready to start shopping for affordable UM/UIM coverage, check out our free quote comparison tool.

Comparing Affordable Uninsured and Underinsured Auto Insurance Rates

There are a number of companies that offer Uninsured/Underinsured motorist coverage, but the rates you pay won’t be the same at every company. Take a look at the most popular companies’ average rates for UM/UIM insurance below.

While USAA is one of the cheapest companies, it is only for military and veterans, which makes Geico the cheapest company for most drivers. You can read our Geico auto insurance review for more information about the company.

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How Uninsured or Underinsured Auto Insurance Coverage Works

There are many different types of auto insurance coverage, and understanding how auto insurance works will ensure you get the best coverage for your needs. Uninsured or underinsured auto insurance coverages protect you if you are hit by a driver who either doesn’t have insurance or doesn’t have enough insurance to cover your bills.

You will have to file a claim after a UM/UIM qualifying accident with your insurance company, and it will handle the rest. You can read our guide on State Farm uninsured/underinsured motorist claims for an idea of how claims for UM/UIM coverage work.

If you live in a state where drivers are prone to driving without insurance or carrying minimum insurance only, UM/UIM coverage can be a great add-on to your policy.

The Difference Between Uninsured/Underinsured Auto Insurance Coverage

Uninsured and underinsured auto insurance coverage are sold separately, but most drivers often carry them together. The difference between uninsured and underinsured coverages is that underinsured motorist insurance is for when the driver that hits you doesn’t have great coverage.

An underinsured motorist coverage example would be if the driver has only a $10,000 limit of property damage liability insurance, but your car repairs cost $15,000. In this case, underinsured motorist coverage will pay the difference.

On the other hand, uninsured motorist insurance is for when the driver that hits you doesn’t have insurance, like with hit-and-run accidents. In this case, uninsured motorist insurance will cover your bills up to the policy limit. Without uninsured motorist insurance, your
average uninsured motorist settlement may not be enough to pay off your accident bills.

Learn more: What happens if you get into an accident without insurance?

Two Types of Uninsured/Underinsured Auto Insurance Coverage

There are two components to UM/UIM coverage: Uninsured/Underinsured motorist bodily injury and Uninsured/Underinsured motorist property damage. The bodily injury part of the coverage will help pay for your medical bills if you are injured in an accident caused by another driver who is uninsured or underinsured.

Read more: What happens if you hit an uninsured driver? 

On the other hand, the property damage part of the coverage will help pay for your vehicle repairs if your vehicle is damaged by an uninsured or underinsured driver.

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Uninsured/Underinsured Coverage vs. Full Coverage Auto Insurance

Full coverage auto insurance will cover your accident costs if you are hit by another driver. It will also cover other parties’ accident costs if you hit them. However, it will usually not cover you if the driver can’t afford to pay all of your accident bills or doesn’t have insurance, as this is covered under uninsured or underinsured motorist coverage.

UM/UIM insurance provides additional protection in states that have low coverage requirements or a high amount of uninsured drivers.

Daniel Walker
Licensed Insurance Agent

We do recommend that drivers purchase affordable full coverage auto insurance, as it provides the best protection in a variety of situations, whether you hit a deer or back into another car in a parking lot.

Why You May Not Need Uninsured or Underinsured Auto Insurance Coverage

You do not always need to carry uninsured or underinsured auto insurance, as it may not be required in your state. Below, you can see the uninsured/underinsured motorist insurance requirements by state.

As you can see, there are a handful of states, like California and Florida, that do not require drivers to have UM/UIM insurance.

How to Find Affordable Uninsured or Underinsured Auto Insurance Coverage

If you want to add UM/UIM coverage to your auto insurance policy, there are plenty of ways to find affordable uninsured or underinsured auto insurance coverage. The best way is to shop around and compare UM/UIM rates at different auto insurance companies to find the best deal.

If you want to find the best UM/UIM coverage rates today, you can use our free quote comparison tool to get started.

Frequently Asked Questions

What happens when an uninsured or underinsured driver hits you?

If the driver is uninsured, such as with hit-and-run accidents, then you will have to make a claim with your auto insurance company under UM. Likewise, if the driver is underinsured, you will receive what they can pay and then file to have your insurance company pay the rest.

What is uninsured vs. underinsured auto insurance?

Uninsured auto insurance covers your bills if the driver who hit you doesn’t have insurance. Underinsured auto insurance helps cover the remainder of your bills if the driver who hit you has poor insurance coverage.

How do I file an uninsured motorist auto insurance claim?

You will have to contact your auto insurance company and follow its steps for filing an uninsured motorist claim.

Is there a statute of limitations on uninsured or underinsured auto insurance claims in my state?

Yes, most states have statutes of limitations on how long you have to file, usually a few years.

Will an uninsured motorist claim raise my auto insurance rates?

A no-fault uninsured motorist claim may raise your rates slightly depending on the company.

Do I need uninsured or underinsured auto insurance coverage if I have collision and comprehensive insurance?

You may need these coverages if they are required by your state, but in most cases, they are optional.

Is uninsured or underinsured auto insurance coverage required in my state?

Uninsured and underinsured auto insurance may be required in your state.

What does uninsured or underinsured auto insurance coverage pay for?

UM and UIM insurance pay for your medical bills and vehicle repair costs.

What does it mean to be underinsured?

Underinsured drivers are those who don’t have adequate coverage to pay for damages and injuries they cause in an accident.

What is the difference between stacked and unstacked car insurance?

Stacked car insurance allows you to combine your UM/UIM limits for more coverage if you have coverage on more than one vehicle. Unstacked car insurance will not allow you to raise your limits, even if you have more than one vehicle on your policy.

Do I need uninsured motorist coverage in Texas?

Texas does not require drivers to carry uninsured motorist coverage.

What happens if the person at fault in an accident has no insurance in Florida?

If you have uninsured motorist insurance, it will cover the cost of your accident bills. Otherwise, you may have to file a lawsuit against the driver to receive money for your injuries and property damages.

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Rachel Bodine

Insurance Feature Writer

Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All…

Brandon Frady

Licensed Insurance Agent

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi…

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