Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) are two parts of the same protection. UM pays when the at-fault driver has no insurance at all. UIM pays when the at-fault driver's liability limits are too low to cover your medical bills, lost wages, and vehicle damage. Both coverages step in only after you've exhausted the at-fault driver's insurance, and they pay up to your own policy's UM/UIM limits, not beyond.
- You're rear-ended at a stoplight and suffer a concussion and neck injury requiring $18,000 in medical treatment. The at-fault driver has no insurance. Your UM coverage pays the $18,000 in medical bills up to your policy limit. Without UM, you would pay out of pocket or sue the uninsured driver directly, a process that rarely recovers meaningful compensation.
- A driver runs a red light and totals your vehicle, causing $22,000 in property damage and $15,000 in medical expenses. The at-fault driver carries only the New York state minimum of $10,000 property damage and $25,000 bodily injury per person. Their property damage limit pays $10,000 toward your car, leaving $12,000 unpaid. Their bodily injury limit covers your $15,000 in medical costs. Your UIM property damage coverage pays the remaining $12,000 for your vehicle, assuming your UIM limit is high enough.
- Your parked car is sideswiped overnight and the driver flees. Repair costs total $8,500. Because the at-fault driver cannot be identified, your UM property damage coverage treats this as an uninsured motorist claim and pays the $8,500, minus your deductible if your policy includes one for UM property damage. Collision coverage would also pay this claim, but UM property damage often carries a lower or no deductible.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM/UIM coverage if you drive regularly in New York, especially in areas with high traffic density or higher uninsured driver rates. This coverage is critical if you cannot afford to pay medical bills or vehicle repair costs out of pocket after a crash caused by someone else. New York law assumes you need this protection and includes it automatically unless you waive it.
If the cost of replacing your vehicle or covering a serious injury out of pocket would strain your finances, keep UM/UIM coverage at limits matching your liability coverage. If you reject it, you are betting that every driver who hits you will carry sufficient insurance to pay your claim in full, a bet that fails 13% of the time in New York based on uninsured driver estimates.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM/UIM coverage typically adds $8 to $20 per month to a New York auto insurance premium, or roughly $96 to $240 annually, depending on your selected limits and whether you include UM property damage.
- Your UM/UIM bodily injury limits relative to your liability limits — higher limits cost more but provide broader protection.
- Whether you add optional UM property damage coverage, which pays for vehicle damage when the at-fault driver is uninsured or unidentified.
- Your county's uninsured driver rate — areas with higher percentages of uninsured motorists see slightly higher UM premiums due to increased claim frequency.
- Whether you select stacked or unstacked coverage in states that offer stacking — New York does not allow stacking, so this factor does not apply here.
- Your driving record and claims history — a clean record reduces UM premiums just as it reduces liability premiums.