The Coverage You Didn’t Know You Needed: Uninsured & Underinsured Motorist Insurance

When it comes to car insurance, most drivers focus on covering damage to their own vehicle or meeting state liability requirements. But what happens if someone else causes an accident and they don’t have enough insurance — or any at all? That’s where Uninsured and Underinsured Motorist (UM/UIM) coverage comes in.
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It’s one of the most important — and often overlooked — parts of your auto policy. If you're ever in a collision caused by a driver who lacks adequate insurance, this coverage can be the financial safety net that keeps you from paying out of pocket.

What Is Uninsured & Underinsured Motorist Coverage?
Uninsured Motorist (UM) Coverage protects you if you’re hit by a driver who doesn’t have car insurance at all.

Underinsured Motorist (UIM) Coverage helps when the at-fault driver has insurance, but not enough to cover all your damages.

UM/UIM coverage typically applies to:

• Medical bills for you and your passengers
• Lost wages due to injury
• Pain and suffering
• In some states, property damage (varies by policy)

Example: You’re rear-ended at a stoplight. The other driver is at fault, but they don’t carry insurance. Your UM coverage would help pay your medical bills and repair costs — without needing to sue the other driver.

Why This Coverage Is So Important
According to the Insurance Research Council, 1 in 8 drivers in the U.S. is uninsured. In some states, that number is even higher. And even among insured drivers, minimum coverage limits are often too low to cover the full cost of serious accidents.

Here’s why UM/UIM coverage is a smart (and sometimes essential) choice:
✅ Covers You When Others Can’t (or Won’t) Pay
If you're injured in a hit-and-run or by an uninsured driver, you could be left with massive medical bills and repair costs — unless you have UM/UIM protection.

✅ Protects You from Legal Battles
Instead of trying to sue an uninsured driver (who likely doesn’t have the means to pay), your insurance steps in to cover your losses.

✅ Often Affordable to Add
Compared to other types of auto insurance, UM/UIM coverage is generally inexpensive — especially considering the financial risk it protects you from.

How Does It Work in a Claim?
If you’re injured in a crash caused by an uninsured or underinsured driver:

• You file a claim with your own insurance under your UM or UIM coverage.
• Your insurer investigates the accident and confirms the other driver’s lack of coverage.
• You receive payment (up to your policy limits) to cover medical bills, lost wages, and other damages.

This coverage typically applies whether you're driving, walking, or even riding a bike when struck by a vehicle.

What Coverage Limits Should You Choose?
Most insurers allow you to choose UM/UIM limits that match your liability coverage — and that’s a smart baseline. If you carry $100,000 in liability protection, consider matching that with $100,000 in UM/UIM.

Factors to consider when choosing limits:

• Your health insurance coverage (and deductible)
• How much you rely on your vehicle for work or mobility
• Whether you frequently drive in areas with high rates of uninsured drivers

Tip: Higher UM/UIM limits offer greater peace of mind, and the cost to increase them is usually minimal.

Is UM/UIM Required?
It depends on where you live:

• Some states require UM/UIM coverage as part of your auto policy.
• Others offer it as optional, but you must decline in writing if you don’t want it.

Even if it’s optional in your state, most insurance professionals recommend adding it — especially in areas with high uninsured driver rates or heavy traffic.

Final Thoughts: Coverage You Can’t Afford to Skip
Accidents are unpredictable — and unfortunately, not every driver on the road is responsibly insured. Uninsured and underinsured motorist coverage fills in the gaps and ensures that you don’t suffer financially because of someone else’s bad choices.

If your current auto policy doesn’t include UM/UIM protection — or you’re unsure — now is the perfect time to review it. A quick conversation with your insurance agent could save you thousands in the future.

At Family Auto Insurance Agency, we strive to provide our clients with affordable and comprehensive policies. We will always go all out to satisfy your demands. To learn more about how we can assist you, don't hesitate to contact us at (313) 285-9042 or CLICK HERE ​to request a free quote.

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​