At Crain Insurance Group, we believe your protection shouldn’t stop where another driver’s
responsibility ends.
That’s where Uninsured and Underinsured Motorist (UM/UIM) coverage steps in. These two
often-overlooked parts of your auto policy can make the di erence between financial
stability and serious setbacks after a car accident, especially if the other driver doesn’t
have enough (or any) insurance.
Let’s break it down—what exactly is UM/UIM, why does it matter, and how do you make
sure you’re covered?
What is Uninsured Motorist (UM) Coverage?
Uninsured Motorist coverage protects you when the at-fault driver in an accident has no
auto insurance at all.
Despite state laws requiring insurance, millions of drivers are still on the road uninsured. In
fact, according to the Insurance Research Council, about 1 in 8 drivers in the U.S. is
uninsured. That means every time you hit the road, there’s a real risk that if someone
crashes into you, they might not have the financial means to pay for your injuries or
property damage.
With UM coverage, your own insurance steps in to pay for your medical bills, lost wages,
and other costs that would have been the responsibility of the other driver.
What is Underinsured Motorist (UIM) Coverage?
Underinsured Motorist coverage helps when the at-fault driver has insurance, but not
enough to cover the full extent of your injuries or losses.
Let’s say you’re hit by someone who carries the state minimum liability coverage—maybe
$25,000 in bodily injury liability. But your hospital bills and lost wages total $75,000.
Without UIM, you’d be on the hook for the di erence. With it, your insurance can bridge that
financial gap.
Types of UM/UIM Coverage
There are two key categories within Uninsured and Underinsured Motorist coverage:
1. Bodily Injury (UMBI/UIMBI)
Covers:
- Medical expenses
- Lost wages
- Pain and su ering
- Funeral costs, if applicable
This applies to you, your passengers, and in some states even if you’re a pedestrian or
bicyclist hit by an uninsured or underinsured driver.
2. Property Damage (UMPD/UIMPD)
Covers:
- Repairs to your vehicle or property caused by an uninsured driver
However, not all states allow or o er UMPD, and in many cases, drivers rely on collision
coverage instead.
Why You Need UM/UIM Coverage
- Medical costs can pile up fast.
An ER visit, ambulance ride, surgery, or physical therapy can easily total tens of thousands
of dollars. - State minimum liability isn’t enough.
Many states have low required limits that wouldn’t even begin to cover a serious accident. - Legal options are limited.
If the other driver has no money or assets, suing them may not get you the compensation you need—even if you win in court. - UM/UIM is relatively a ordable.
Compared to the coverage it provides, UM/UIM is often one of the most cost-e ective add-ons to your policy.
Real-Life Scenario: Why It Matters
Picture this: You’re driving home from work, stopped at a red light, when another vehicle
plows into the back of your car. Your neck and back are seriously injured. After a trip to the
hospital, imaging, and physical therapy, the total cost of your treatment hits $60,000.
The driver at fault? They have no insurance.
If you don’t have UM coverage, you’re paying out of pocket or relying on your health
insurance (which may not cover everything and may require reimbursement later). But with
UM, your auto policy steps up to cover those bills, up to your policy limits of course.
UM/UIM vs. Other Coverages
Sometimes people assume they’re covered by other parts of their policy—but that’s not
always the case. Here’s how UM/UIM compares:
| Coverage Type | Covers You When… | Pays For… |
|---|---|---|
| Liability | You’re at fault | Injuries & damage to others |
| Collision | Your car is damaged regardless of fault | Your vehicle repairs |
| Medical Payments (Med Pay) | Anyone is at fault | Limited medical bills |
| UM/UIM | Other driver is at fault & has no/inadequate insurance | Your injuries (and sometimes damage) |
Think of UM/UIM as a backup plan to protect you when the other driver can’t.
What Limits Should You Choose?
Most insurance companies o er UM/UIM limits that mirror your liability limits. So, if you
carry 100/300 liability coverage (that’s $100,000 per person and $300,000 per accident),
you can usually match that in UM/UIM.
We recommend carrying limits equal to your liability coverage—especially if:
- You don’t have strong health insurance
- You have dependents or others riding with you often
- You can’t a ord to pay out-of-pocket after a major accident
Is UM/UIM Coverage Required?
That depends on where you live:
- Required in some states: For example, Illinois, New York, and North Carolina
require at least minimum limits of UM. - Optional but recommended in others: Even where it’s not mandated, most
insurance professionals (including us!) urge drivers to carry it. - UIM may be optional even if UM is required: Some states separate the two.
Not sure what your state requires? That’s where we come in. We’ll walk you through your
state laws, your current policy, and what’s best for your situation.
Common Myths About UM/UIM Coverage
- “I don’t need it—I have health insurance.”
Health insurance may not cover lost wages, long-term care, or pain and su ering. UM/UIM fills those gaps. - “The other driver will just pay.”
Not likely. If they didn’t carry insurance in the first place, they probably don’t have the
financial means to pay out of pocket. - “It’s too expensive.”
In most cases, adding UM/UIM costs far less than you’d expect—and certainly less than thefinancial hit of a serious accident.
How Do I Add It to My Policy?
If you already have an auto policy with Crain Insurance Group, give us a call. We’ll review
your current limits and help you decide whether UM/UIM should be added or increased.
If you’re not yet a client, let’s change that. Our team shops multiple carriers to find the best
combination of coverage and savings—because peace of mind shouldn’t come with a
premium price tag.
Final Thoughts: Don’t Let Someone Else’s Mistake Become Your Burden
Uninsured and Underinsured Motorist coverage is one of those things you hope you never
need—but when you do, it can be a lifesaver. You don’t get to choose who hits you on the
road, but you can choose to protect yourself in advance.
At Crain Insurance Group, we believe in planning ahead. We help you build a policy that not
only meets state requirements but shields you from the unknown.
Crain Tip:
If you’re not sure whether you have UM or UIM coverage—or if you’re worried you don’t have
enough—give us a call. We’ll give it a quick review at no cost.
Disclaimer: The information provided in this post is for general recommendation purposes only. Please consult with your own licensed insurance agent for advice specific to your situation. Insurance can vary by state. If you don’t have a trusted agent, we’re happy to assist with quotes and guidance.