Uninsured Motorist Coverage: How It Works and Why You Need It
A-MAX Editorial Team
Reviewed by Rajesh Sankaran, Licensed Insurance Agent
Short answer
Uninsured motorist coverage (UM) pays for your injuries, and in many policies damage to your car, when another driver causes the accident but has no insurance or leaves the scene. Underinsured motorist coverage (UIM) pays when that driver's insurance is too small to cover your costs. You claim on your own policy, not theirs.
When one of those drivers hits you, UM/UIM is what keeps the bill from landing on you. At A-MAX, we explain how the coverage works in your state and help you set limits that fit 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 to be paid 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.
How the two parts are packaged, and whether property damage is offered as part of UM, depends on your state and your carrier, so ask to see both on your quote.
2. What about underinsured drivers (UIM)?
Underinsured motorist coverage kicks in when the at-fault driver has insurance but not enough to cover the damage.
As a simple example: if they carry $25,000 in bodily injury liability and your medical bills are $60,000, the $35,000 difference falls on you unless you have your own coverage. Underinsured motorist coverage (UIM) covers that gap, up to your limit.
This matters because many drivers carry only their state's minimum liability limits: 30/60/25 in Texas, 30/60/15 in California (effective January 2025 under SB 1107), and 25/50/15 in Arizona. A serious injury can cost far more than those limits pay.
3. Is uninsured motorist coverage required in Texas, California and Arizona?
In all three states, insurers must offer it, and you can turn it down. How that works differs by state:
| STATE | THE RULE | WHERE TO CONFIRM IT |
|---|---|---|
| Texas | Insurers must offer UM/UIM. Declining it requires a written rejection. | Texas Department of Insurance (TDI) |
| California | Insurers must offer UM/UIM. Declining it requires a written rejection. | California Department of Insurance (CDI) |
| Arizona | Insurers must offer UM and UIM by written notice on an approved form. UM and UIM are separate coverages. | Arizona Department of Insurance and Financial Institutions (DIFI) |
For the rest of each state's rules, see our Texas, California and Arizona pages.
4. 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.
Ask about property damage coverage for your car if your state and carrier offer it with UM.
Do not reject UM/UIM to save on the premium unless you fully understand the trade-off.
Compare the price of higher UM/UIM limits side by side before you decide. The difference is often smaller than people expect, but it depends on your carrier, your state and your record.
If you already carry full coverage, your collision coverage can also pay for your own car after a crash with an uninsured driver, minus your deductible. If you carry liability only, your policy does not pay for your own car, so UM/UIM is what steps in for your losses when the at-fault driver cannot pay.
5. How does A-MAX help you set uninsured motorist coverage?
A-MAX walks through UM/UIM coverage at every quote. We do not strip it out to make the headline rate look lower. Many insured drivers carry only state minimums, and some drivers carry no insurance at all. UM/UIM is the coverage that protects you from both situations.
If your current policy has UM/UIM at low limits or rejected entirely, we will quote you at higher limits side by side so you can see the exact cost difference before you decide.
The bottom line
Uninsured motorist coverage is one of the highest-value coverages on a non-standard auto policy. The cost is usually modest; the protection in a serious accident with an uninsured or underinsured at-fault driver is large. If you have been in an accident already, start with what to do after a car accident.
Ready to check your UM/UIM limits? Get a quote or call 1-800-921-AMAX.
Related A-MAX guides
Sources
- 1. Texas Department of Insurance. Auto insurance consumer information. tdi.texas.gov
- 2. Texas Department of Public Safety. Financial responsibility and minimum liability limits. dps.texas.gov
- 3. California DMV. Vehicle insurance requirements and minimum limits (SB 1107, effective Jan 2025). dmv.ca.gov
- 4. Arizona Department of Insurance and Financial Institutions. Minimum auto coverage. difi.az.gov
About A-MAX Insurance
A-MAX Insurance has helped drivers find affordable auto coverage since 2002, with offices across Texas, California and Arizona. 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.
Trusted by over 3 million drivers. Hablamos español.
This article is general guidance based on Texas, California, and Arizona insurance rules. Coverage rules vary by state, carrier and individual situation. For advice specific to your policy, call 1-800-921-AMAX or visit an A-MAX office.
About this page
Written by the A-MAX Editorial Team. Reviewed by Rajesh Sankaran, Licensed Insurance Agent. We review and update it as state rules and carrier availability change.
Last updated October 29, 2026
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FREQUENTLY ASKED QUESTIONS
Uninsured motorist coverage pays for your injuries, and often your vehicle damage, when the at-fault driver has no insurance, not enough insurance, or flees the scene. You file with your own carrier, even though the other driver caused the accident.
Insurers in all three states must offer UM/UIM coverage, and you can decline it. In Texas and California, declining requires a written rejection. In Arizona, insurers must offer UM and UIM by written notice on an approved form, and they are separate coverages.
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. In Texas and California you will usually see them together as UM/UIM; in Arizona they are separate coverages.
It depends on your state, your carrier, your record and the limit you pick. The only way to know is to price it: A-MAX shows you the exact cost at your selected limit, side by side with higher and lower limits, so you can decide.
Rate changes after a claim are set by your carrier, and they usually turn on who was at fault. Because a UM claim involves another driver causing the accident, it is treated differently from an at-fault claim, but ask your carrier how it handles UM claims. If your rate rises at renewal, A-MAX can re-shop your policy.
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