Uninsured Motorist Coverage: What Happens When the At-Fault Driver Has No Insurance
Approximately 1 in 8 drivers — 13% of all motorists — carries no car insurance, according to the Insurance Research Council's 2023 report. In states like Mississippi, Michigan, and Tennessee, the rate exceeds 20%. Uninsured and underinsured motorist (UM/UIM) coverage is the only reliable protection when the at-fault driver cannot pay your damages.
First Responder Insight: Hit-and-run crashes are among the most frustrating scenes to work — a seriously injured person, an unknown at-fault driver, and no one to hold responsible. UM coverage exists precisely for this situation. If you do not have it, a hit-and-run can leave you with six-figure medical bills and no recourse.
The Uninsured Driver Problem by the Numbers
| State | Estimated Uninsured Rate |
|---|---|
| Mississippi | 29.4% |
| Michigan | 25.5% |
| Tennessee | 23.7% |
| New Mexico | 21.8% |
| Washington | 21.7% |
| Florida | 20.4% |
| Arkansas | 19.3% |
| California | 16.6% |
| Texas | 14.1% |
| National Average | 13.0% |
Source: Insurance Research Council, Uninsured Motorists, 2023 Edition.
UM vs. UIM: Understanding the Difference
Uninsured Motorist (UM)
Applies when the at-fault driver has zero insurance — or in hit-and-run scenarios where the driver flees and cannot be identified.
UM pays: Your medical bills, lost wages, pain and suffering — up to your policy limit.
Underinsured Motorist (UIM)
Applies when the at-fault driver has insurance, but their limits are not enough to cover your full damages.
UIM pays: The gap between the at-fault driver's limit and your actual damages, up to your UIM limit.
UIM Example
Your damages: $120,000
At-fault driver's liability limit: $25,000
Your UIM limit: $100,000
UIM pays: $95,000 (your damages minus the $25,000 already paid by the at-fault driver's insurer)
What UM/UIM Covers
- Medical expenses: Hospital, surgery, rehab, ongoing care
- Lost wages: Income lost while recovering
- Pain and suffering: Non-economic damages (unlike PIP)
- Wrongful death: Surviving family members' damages
- Hit-and-run: Covered in most states
UMPD — Uninsured Motorist Property Damage
Separate from UM bodily injury, UMPD covers damage to your vehicle when an uninsured driver is at fault. It is available in most states and is typically cheaper than collision coverage — with a lower or no deductible in some states. If you do not have collision coverage, UMPD fills a critical gap.
States That Require UM Coverage (2026)
The following states require uninsured motorist bodily injury coverage: Connecticut, Illinois, Kansas, Maine, Maryland, Massachusetts, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Vermont, Virginia, West Virginia, and Wisconsin. Limits and stacking rules vary by state.
How to File a UM Claim
- Report the accident to police — a police report is required for most UM claims, particularly hit-and-run
- Notify your own insurer promptly — UM claims are filed with your own insurance company, not the at-fault driver's (who has none)
- Document everything — same as any claim: medical records, photos, lost wage documentation
- Your insurer steps into the at-fault driver's shoes — they may negotiate or dispute the claim as if they were the adverse party
- Arbitration if disputed — most UM policies require binding arbitration rather than litigation to resolve disputes
Important: Your Insurer Is Now the Adversary
When you file a UM claim, your own insurance company evaluates and may dispute your claim just as a third-party insurer would. They have a financial interest in paying as little as possible. Treat your UM claim with the same preparation and documentation discipline as any third-party claim — and consider hiring an attorney for significant injuries.
How Much UM/UIM Coverage Do You Need?
Minimum required coverage is rarely enough. Consider your assets, income, and medical costs:
- Minimum ($25,000/50,000): Covers minor injuries. One hospitalization can exceed this.
- Recommended ($100,000/300,000): Adequate for moderate injuries requiring surgery or extended treatment.
- High-income earners or high-assets: Consider $250,000/500,000 or umbrella policy coverage on top of UM.
UM/UIM coverage is inexpensive relative to the protection it provides — typically $50–$150 per year for $100,000 in coverage. It is among the best value additions to any auto policy.
Key Takeaway
With 1 in 8 drivers uninsured and millions more severely underinsured, UM/UIM coverage is not optional — it is essential. The minimum liability coverage required by most states ($25,000) is exhausted by a single ambulance ride and a few days in the hospital. Carry enough UM/UIM to match your liability limits, and make sure it covers hit-and-run scenarios in your state.