Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage pays when a driver with no insurance causes an accident that injures you or damages your vehicle. Underinsured motorist coverage applies when the at-fault driver carries liability insurance, but their policy limits are too low to cover your full claim. Both coverages step in after the at-fault driver's insurance is exhausted or confirmed absent, covering medical bills, lost wages, vehicle repair, and in some states pain and suffering up to your selected limits.
- A driver with no insurance rear-ends you at a stoplight. You sustain $22,000 in medical bills and $8,000 in vehicle damage. The at-fault driver has no liability coverage to pay your claim. Your uninsured motorist bodily injury coverage pays the $22,000 in medical costs up to your policy limit, and uninsured motorist property damage pays the $8,000 vehicle repair. Without this coverage, you file a lawsuit against the driver personally and attempt to collect from someone who likely has no assets.
- A driver carrying Indiana's minimum $25,000 per person bodily injury limit causes an accident that results in $60,000 in medical bills for you. Their liability insurance pays the $25,000 policy maximum and stops. If you carry $100,000 in underinsured motorist coverage, your policy pays the remaining $35,000. If you carry no underinsured motorist coverage, you are responsible for the $35,000 gap unless you sue the driver and win a judgment you can actually collect.
- A driver runs a red light, hits your car, and flees the scene. Police identify the driver, who has no insurance. Your uninsured motorist coverage treats this the same as any uninsured driver accident and pays your medical bills and vehicle damage up to your limits. If the driver is never identified, some states allow uninsured motorist coverage to apply and others do not — Indiana allows it under uninsured motorist property damage if you carry that optional coverage.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry uninsured and underinsured motorist coverage if you live in a state or county with a high percentage of uninsured drivers, if you cannot afford to pay out of pocket for medical bills or vehicle damage after an accident caused by someone else, or if you carry liability limits higher than your state's minimum and want protection against drivers who carry only the minimum. This coverage is the only financial protection you have when the at-fault driver has no insurance or inadequate insurance, short of suing someone who likely cannot pay a judgment.
Compare your uninsured motorist limit options to your health insurance out-of-pocket maximum and your ability to replace your vehicle or pay medical bills if the at-fault driver has no insurance. If your health insurance deductible is $5,000 and an uninsured driver causes an accident that injures you, uninsured motorist bodily injury coverage pays that $5,000 and all costs beyond it up to your limit. If you would struggle to pay that $5,000 or cover vehicle damage out of pocket, carry this coverage at limits matching or exceeding your liability limits.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8 to $18 per month to an Indiana auto insurance premium, or approximately $96 to $216 annually, depending on the limits you select and your county.
- Coverage limits you select — higher uninsured motorist limits cost more, and matching your liability limits is common but raises the premium.
- Whether you add uninsured motorist property damage in addition to bodily injury coverage — property damage protection costs extra and is optional in Indiana.
- Your county's uninsured driver rate — counties with higher percentages of uninsured drivers see higher premiums for this coverage.
- Stacking options if you insure multiple vehicles — some carriers allow you to combine limits across vehicles for a higher total payout and higher premium.
- Your liability limits — carriers often price uninsured motorist coverage as a percentage of your liability coverage cost, so higher liability limits increase the uninsured motorist add-on cost.