What is uninsured and underinsured motorist coverage?

Car insurance is required by state law, unlike homeowners insurance. But according to Michael Dietry, assistant vice president of personal line products and services at Dairyland Insurance, in 2017, 13% of motorists (or 1 in 7 drivers) were uninsured.

To protect yourself from uninsured drivers, some states require uninsured and underinsured motorist coverage, which falls under liability car insurance.

There are four main types of car insurance: comprehensive, collision, and liability. Full coverage is a combination of the three.

Most states require liability car insurance. However, if you lease or finance your vehicle, your lender may also require both comprehensive and collision coverage.

What is uninsured and underinsured liability car insurance
Liability insurance covers damage you cause to the other vehicle, driver, and its passengers. It also includes uninsured motorist (UM) and underinsured motorist (UIM) coverage — to protect you when an at-fault driver with no coverage or not enough coverage hits you .

Dietry said uninsured and underinsured coverage is required in 22 states, meaning you can’t reject the coverage. Minimum coverage requirements for liability insurance vary by state.

Liability Type Coverage Provided
Bodily Injury (BI) Injury you cause to others, including medical expenses, lost wages, and funeral expenses
Property Damage (PD) Damage you cause to others’ vehicle or property
Uninsured Motorist (UM) Protects you when an at-fault driver hits you with no insurance
Underinsured Motorist (UIM) Protects you when an at-fault driver hits you with not enough coverage


What does uninsured and underinsured insurance cover
Uninsured and underinsured liability insurance covers damage to you or your vehicle caused by someone who doesn’t have insurance, or who doesn’t have enough insurance.

Damage Comprehensive Collision Liability* Full
Theft Yes No No Yes
Vandalism Yes No No Yes
Fire Yes No No Yes
Natural Disaster Yes No No Yes
Falling objects (tree) Yes No No Yes
Animal damage Yes No No Yes
Collision/accident No Yes No Yes
Rollover No Yes No Yes
Bodily injury (BI)/medical bills No No Yes Yes
Physical damage No No Yes Yes
Property damage (PD) No No Yes Yes
Uninsured motorist (UM/UIM) No No Yes Yes

*Most states require some type of liability coverage







Ronda Lee
Founder, Editor-in-Chief
Ronda is an attorney, writer, and entrepreneur. She is a contributing writer for the Huffington Post. Originally from Chicago, she has lived in Los Angeles and New York. She loves to travel and is passionate about education equity, especially for first generation college students.