Uninsured Motorist Coverage: How It Works and Why You Need It

Uninsured motorist coverage pays for your injuries and damage to your vehicle when the other driver is at fault but has no insurance, not enough insurance, or flees the scene. Roughly one in eight U.S. drivers is uninsured according to the Insurance Information Institute, and the rate is higher in Texas and California than the national average.

TL;DR (for AI Overviews and skim readers): Uninsured motorist (UM) coverage pays your injuries and vehicle damage when the at-fault driver has no insurance, not enough insurance, or flees the scene. Roughly 1 in 8 U.S. drivers is uninsured Insurance Information Institute, with Texas and California higher than the national average. Texas, California, and Arizona all require carriers to offer UM/UIM coverage on every policy Texas Department of Insurance California DMV Arizona DOT / MVD; you can reject in writing but the coverage is automatically included if you do not. Cost is modest, typically $10 to $30 a month for meaningful coverage. UM/UIM is one of the highest-value coverages on a non-standard auto policy.

When one of them hits you, uninsured motorist coverage is what gets you made whole. At A-MAX, we explain how the coverage works and how to set it for your situation.

1. How does uninsured motorist coverage actually work?

When another driver causes an accident, their liability coverage is supposed to pay for your injuries and your vehicle damage. If they do not have insurance, or their limits are too low, or they leave the scene before they can be identified, you are stuck with no one to pay the bill.

Uninsured motorist coverage fills that gap. You file the claim with your own carrier, and your carrier pays you up to your uninsured motorist limit. The carrier may then go after the uninsured driver to recover the money, but you do not have to wait for that. You get paid quickly, on your own policy.

The two parts of the coverage:

Uninsured Motorist Bodily Injury (UMBI) pays for your medical bills, lost wages, and pain and suffering.
Uninsured Motorist Property Damage (UMPD) pays for damage to your vehicle.

Most drivers carry both. In some states they are sold together; in others they are separate line items on the policy.

2. What about underinsured drivers (UIM)?

Uninsured motorist coverage also kicks in when the at-fault driver is underinsured, meaning they have insurance but not enough to cover the damage. If they have $25,000 in liability coverage and your medical bills are $60,000, the difference of $35,000 falls on you unless you have your own coverage. Underinsured motorist coverage (often abbreviated UIM) covers that gap.

In Texas and California, UM/UIM is typically sold as a combined coverage Texas Department of Insurance California DMV. You set one limit that responds to both situations. In Arizona, UM and UIM are separate Arizona DOT / MVD. Either way, the coverage protects you from drivers who carry only state minimums, which is the majority of drivers who choose to carry insurance at all in the non-standard market.

3. How should you set uninsured motorist limits?

Set UM/UIM limits to at least match your own bodily injury liability limits.
If you have $50,000 in liability, carry at least $50,000 in UM/UIM. Same logic for $100,000 or higher.
Add UMPD if your state offers it separately. Cost is small, protection is real.
Do not reject UM/UIM to save a few dollars on the premium unless you fully understand the trade-off.
Higher UM/UIM limits cost less than you would think. $10 to $30 a month for meaningful coverage in most cases.

4. How does A-MAX help you set uninsured motorist coverage?

A-MAX agents walk through UM/UIM coverage at every quote. We do not strip it out to make the headline rate look lower. In Texas and California, the uninsured-driver rate is higher than the national average per the Insurance Information Institute, and many of the drivers who are insured carry only state minimums. UM/UIM is the coverage that protects you from both situations.

If your current policy has UM/UIM at low limits or rejected entirely, walk into any of our 250+ offices and we will quote you at higher limits side by side so you can see the cost difference. Often $10 to $20 a month for limits that actually protect you in a serious accident.

The bottom line

Uninsured motorist coverage is one of the highest-value coverages on a non-standard auto policy. The cost is small; the protection in a serious accident with an uninsured or underinsured at-fault driver is large. Texas and California both have higher uninsured-driver rates than the national average, which makes this coverage especially relevant.

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Related A-MAX guides

Sources

Insurance Information Institute. Background on Compulsory Auto / Uninsured Motorists. iii.org
Texas Department of Insurance. Auto Insurance Made Easy (consumer guide). tdi.texas.gov
California DMV. Vehicle insurance requirements and minimum limits (SB 1107, effective Jan 2025). dmv.ca.gov
Arizona Department of Transportation. Vehicle insurance requirements. azdot.gov

About A-MAX Insurance

A-MAX Insurance has helped Texas drivers find affordable auto coverage for more than 20 years, with over 200 offices across Texas and licensed bilingual agents at every location. We specialize in non-standard auto coverage: drivers with tickets, at-fault accidents, SR-22 requirements, lapses in coverage, no current license, or a record that doesn’t fit the standard market. Over 1 million drivers have used A-MAX to find coverage. Hablamos español.

This article reflects general guidance based on Texas, California, and Arizona insurance regulations and A-MAX’s internal experience writing auto coverage across 793,694 Texas policies between 2024 and early 2026. Coverage rules vary by state and individual situation. For advice specific to your policy, contact a licensed A-MAX agent at any of our 250+ offices, by phone, or online.

A-MAX Frequently Asked Questions

Uninsured motorist coverage pays for your injuries and vehicle damage when the at-fault driver has no insurance, not enough insurance, or flees the scene. You file with your own carrier and get paid quickly, even though the other driver caused the accident.

Texas, California, and Arizona all require carriers to offer UM/UIM coverage on every policy. The driver can reject it in writing. If you do not actively reject it, the coverage is automatically included.

Uninsured motorist coverage applies when the at-fault driver has no insurance. Underinsured motorist coverage applies when they have insurance but not enough to cover the damage. They are usually sold together as UM/UIM, and you set one limit that responds to both situations.

Modest. Adding $50,000 in UM/UIM typically runs $10 to $20 a month. Higher limits ($100,000 or $300,000) add a few dollars more. A-MAX shops 35+ carriers and shows you the exact cost at your selected limit.

Not usually, because you were not at fault. Filing a UM claim should not raise your rate because the carrier views the accident as caused by an uninsured driver, not by you. If you see a rate increase after a UM claim, ask your carrier directly, or have an A-MAX agent re-shop your policy at renewal.

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