Uninsured motorist coverage basics

Full transcript

This transcript covers uninsured motorist coverage—often abbreviated UM on auto policies.

Liability coverage pays others when you are at fault. Uninsured motorist coverage is designed to help you when the other driver has no insurance, or in some policies when a hit-and-run driver cannot be identified—subject to state law and policy wording.

UM is not a substitute for liability. You still need liability limits that match your assets and state requirements.

Many states require carriers to offer UM; some require you to reject it in writing if you do not want it. Keep any signed rejection with your records.

UM limits may mirror your bodily injury limits or appear on separate lines. Read the declarations page instead of assuming they match.

Underinsured motorist coverage—UIM—is related but triggers when the at-fault driver has insurance that is too low for the damages. Some states bundle UM and UIM; others separate them.

Stacking rules, if your state allows them, can increase available UM limits when you insure multiple vehicles. Non-stacked policies pay up to the limit on the vehicle you were driving. Confirm your election.

UM generally does not fix your car—that is often collision’s role. UM focuses on injuries to you and passengers, and sometimes property damage depending on the state form.

Use the liability waterfall tool to see how limits pay in sequence after a crash. It is educational, not a claim prediction.

Verify current requirements with your state Department of Insurance before you bind or waive coverage.

Production script (for editors)