When it comes to auto insurance, each state in the U.S. has its own set of requirements regarding coverage. One of the most critical types of coverage that many drivers overlook is Uninsured/Underinsured Motorist Coverage (UM/UIM). This type of insurance is designed to protect you if you’re involved in an accident caused by a driver who either doesn’t have insurance or doesn’t have enough insurance to cover the damage. UM/UIM coverage can be a lifesaver, but many drivers may not know whether it’s required by law in their state or if it’s something they should choose voluntarily.
In this article, we will explore whether Uninsured/Underinsured Motorist Coverage is required by law in your state. We’ll also cover the specific laws surrounding this coverage, along with some insights into how it works, so you can make informed decisions about your auto insurance policy.
What Is Uninsured/Underinsured Motorist Coverage?
Before diving into the state-specific requirements, it’s important to understand exactly what Uninsured/Underinsured Motorist Coverage (UM/UIM) is and why it’s so vital.
- Uninsured Motorist Coverage (UM) protects you if the at-fault driver in an accident does not have any insurance. This is particularly useful when the other driver is unable or unwilling to pay for your medical bills and property damage.
- Underinsured Motorist Coverage (UIM) is designed for situations where the at-fault driver has insurance, but their policy limits are insufficient to cover all of the damages. For example, if the driver has only the minimum required insurance, which might not be enough to cover your medical expenses or property damage, UIM coverage helps make up the difference.
In many states, having UM/UIM coverage can provide significant peace of mind, ensuring that you are protected against the financial fallout of an accident caused by someone who isn’t properly insured.
States That Require UM/UIM Coverage
While Uninsured/Underinsured Motorist Coverage is crucial, not all states require drivers to carry it. Some states mandate this coverage as part of the minimum auto insurance requirements, while others make it optional. Let’s take a closer look at the state-by-state requirements for UM/UIM coverage.
1. States Where UM/UIM Coverage Is Required by Law
Some states have laws that require Uninsured/Underinsured Motorist Coverage as part of the minimum auto insurance coverage that drivers must maintain. In these states, it’s mandatory to carry a certain level of UM/UIM coverage, but the specific requirements may vary, such as the minimum limits for coverage.
- Florida: In Florida, Uninsured/Underinsured Motorist Coverage is not required by law, but drivers are automatically offered it when they purchase car insurance. You can choose to reject it in writing, but it’s highly recommended to keep this coverage, given the high rate of uninsured drivers in the state.
- Michigan: In Michigan, UM/UIM coverage is mandatory. Drivers in Michigan are required to carry this coverage as part of their no-fault insurance, which covers personal injuries regardless of who is at fault.
- New York: New York is another state where Uninsured/Underinsured Motorist Coverage is required. It is part of the state’s minimum liability insurance requirements. This ensures that if you’re involved in an accident with a driver who has insufficient insurance, you are still covered.
- Minnesota: Minnesota also requires UM/UIM coverage as part of its mandatory auto insurance. The coverage ensures that you are protected against drivers who either have no insurance or too little insurance to cover your costs.
- New Jersey: New Jersey law mandates UM/UIM coverage as part of the standard auto insurance policy. This coverage protects you in cases where the other driver does not have enough insurance to cover your medical bills or property damage.
- Connecticut: Connecticut requires Uninsured/Underinsured Motorist Coverage for all drivers. The state mandates a minimum amount of UM/UIM coverage, but drivers can opt for higher limits based on their needs.
- Georgia: Georgia also requires Uninsured/Underinsured Motorist Coverage to be included in an auto insurance policy unless the driver actively rejects it.
These states have recognized the importance of UM/UIM coverage and have made it mandatory to ensure that drivers are protected from the financial strain caused by accidents with uninsured or underinsured motorists.
2. States Where UM/UIM Coverage Is Optional
In many other states, UM/UIM coverage is not required by law, but it is still an optional coverage that you can choose to include in your policy. While the coverage is not mandatory in these states, it’s often strongly recommended to ensure adequate protection.
- California: In California, UM/UIM coverage is not required, but drivers are given the option to add it to their policy. However, your insurance provider is required to offer you UM/UIM coverage when you purchase insurance, and you must reject it in writing if you decide not to have it.
- Texas: Similarly, in Texas, UM/UIM coverage is not required, but drivers can opt for it. Insurance companies must offer it as an option when you purchase auto insurance, but you have the right to reject it in writing.
- Illinois: Illinois offers UM/UIM coverage as an optional add-on to your auto insurance. While not mandatory, Illinois law requires that insurance companies offer this coverage, and you must provide a written rejection if you choose not to carry it.
- Ohio: Ohio, like many other states, allows UM/UIM coverage to be optional. It is not part of the required auto insurance policy, but drivers are encouraged to consider purchasing it for added protection.
- Nevada: In Nevada, UM/UIM coverage is optional, but you must actively reject it if you do not wish to include it in your policy. If you do not reject it in writing, it may be automatically included in your policy.
- North Carolina: North Carolina is another state where UM/UIM coverage is optional. It is recommended for all drivers, but it is not legally required.
While UM/UIM coverage is optional in these states, it’s important to assess your personal circumstances, such as the rate of uninsured drivers in your area, your risk of being involved in an accident, and your financial situation. Adding this coverage to your policy could save you from significant out-of-pocket expenses in case of an accident with an uninsured or underinsured driver.
3. States Where UM/UIM Coverage Is Not Available
A handful of states have no provisions for UM/UIM coverage, or they have severely limited options for this type of protection. Drivers in these states may need to rely more heavily on their own liability coverage or may have to pursue other legal remedies if they are involved in an accident with an uninsured or underinsured driver.
The Benefits of UM/UIM Coverage
Even if you live in a state where Uninsured/Underinsured Motorist Coverage is not mandatory, it’s important to consider the benefits of adding this coverage to your policy. Here are a few key advantages:
- Protection Against Uninsured Drivers: Accidents with uninsured drivers can be financially devastating, especially if the damages are extensive. UM coverage helps ensure that you don’t end up paying for someone else’s lack of insurance.
- Protection When Limits Are Insufficient: UIM coverage steps in when the at-fault driver’s insurance policy is insufficient to cover your medical bills and property damage. This is particularly important in accidents where medical expenses are high.
- Peace of Mind: Knowing that you’re protected against uninsured or underinsured drivers provides peace of mind, especially in states where there are many drivers without adequate insurance coverage.
Conclusion
Uninsured/Underinsured Motorist Coverage is a crucial component of any auto insurance policy, offering protection against uninsured and underinsured drivers. While some states require it by law, others make it optional. Regardless of whether it’s mandatory in your state, it’s important to assess your risks and consider adding this coverage to your policy. By doing so, you’ll safeguard your medical costs, property damage, and overall financial wellbeing in the event of an accident.
If you’re unsure about your state’s requirements, consult with your insurance agent to determine the best course of action. UM/UIM coverage can offer invaluable protection, and understanding your state’s laws is the first step in ensuring that you have the right coverage in place.