Is Uninsured Motorist Really Worth It
For most drivers it's worth keeping, because the other driver's insurance is the one thing you can't control.
Yes, for most drivers it's worth having
Uninsured motorist coverage pays for your injuries and sometimes your car when the driver who hit you has no insurance or doesn't have enough to cover what happened. Your own insurer pays that claim, the same way it would any other, so you're not left waiting on someone who can't pay.
It matters because you can't see what insurance the other driver carries until after the accident. A clean record and a careful driving history don't protect you from someone else running a light with no policy behind them. The value of this coverage has nothing to do with how you drive and everything to do with who else is on the road.
How many drivers around you are uninsured
The number of uninsured drivers varies a lot by state, and that's the main thing that changes whether this coverage pays off. Some states have far more uninsured drivers than others, and your insurer or your state's insurance department can tell you the rate where you live.
In a state with a lot of uninsured drivers, the odds that you'll eventually need this coverage go up. In a state where it's rare, the coverage still protects you, it just gets used less often.
A related gap is the underinsured driver, someone who has a policy but not enough to cover a serious injury. This happens more often than having no insurance at all, and uninsured motorist coverage in most states also covers that gap. Ask your insurer whether your policy includes both, since some policies separate them.
What your health insurance and other coverage already pay for
If you already have strong health insurance and enough savings to cover a lost car, the case for uninsured motorist coverage looks different than if you don't. Health insurance pays medical bills regardless of who caused the accident, so some of what uninsured motorist coverage would pay for is already covered another way.
What health insurance doesn't touch is lost wages, pain and suffering, or the gap between what your health plan paid and what you still owe. Uninsured motorist coverage can pay for those directly, and in some states it's the only coverage that will.
The other coverage to check is your own collision coverage. If you carry collision, your car gets repaired or replaced regardless of who's at fault, so the vehicle side of uninsured motorist coverage matters less to you than the medical side does.
Questions people ask about this
Is uninsured motorist coverage required by law?
It depends on the state. Some states require it, some require insurers to offer it and let you decline in writing, and some leave it entirely optional. Check with your state's insurance department or your insurer to find out which applies where you live.
Does uninsured motorist coverage cover hit and run accidents?
In most states, yes, because a driver who flees is treated the same as one who has no insurance. The details of how a hit and run claim gets handled vary by insurer, so ask what evidence or police report they'll need.
Will my premium go up if I file an uninsured motorist claim?
This depends on your insurer and your state. Because the accident wasn't your fault, some insurers won't raise your rate for this type of claim, but that isn't guaranteed everywhere. Ask your insurer directly how they handle not-at-fault claims before you file.
Can I drop uninsured motorist coverage if I already have health insurance?
You can in states where it's optional, but health insurance won't cover lost wages, pain and suffering, or damage to your car. Think about what you'd still be on the hook for before deciding to drop it.
Does uninsured motorist coverage apply if I'm a passenger in someone else's car?
In most cases yes, your own uninsured motorist coverage can follow you as a passenger, not just when you're driving your own car. Confirm this with your insurer since the exact terms are written into your policy.
See what it would cost to add or keep this coverage before you decide to drop it.
Pull out your current policy and find the uninsured and underinsured motorist section, or call your insurer and ask them to read it to you. Ask whether your state requires this coverage or lets you decline it, and ask what the uninsured driver rate looks like in your state. Compare what your health insurance and collision coverage already handle against what would be left uncovered. If you're thinking about dropping it to save money, get a quote with it included and one without, so you're comparing the actual difference rather than guessing. Make the decision based on what you'd owe out of pocket, not just what the renewal notice says.
