Updated March 2026
What Is Uninsured Motorist Coverage Insurance?
Uninsured Motorist Coverage (UM) has two components: Uninsured Motorist Bodily Injury (UMBI) pays medical expenses, lost wages, and pain and suffering when an uninsured driver injures your teen, while Uninsured Motorist Property Damage (UMPD) covers vehicle repairs when an uninsured driver hits your teen's car. This coverage also applies to hit-and-run accidents where the at-fault driver flees. When a teen is listed on a parent's policy, the parent's UM limits apply to all covered drivers including the teen—if you carry $100,000/$300,000 UMBI limits, your 17-year-old has those same limits when driving your car or their own covered vehicle.
- Your 17-year-old is driving to school when an uninsured driver runs a red light and T-bones their car. Your teen suffers a broken arm requiring $18,000 in medical treatment, and the car sustains $8,500 in damage. The at-fault driver has no insurance. Your $50,000/$100,000 UMBI covers the full $18,000 in medical costs, and your UMPD (if you carry it) covers the $8,500 vehicle repair minus your deductible—typically $250–$500. Without UM coverage, you'd be responsible for all costs out-of-pocket or forced to sue an uninsured driver who likely has no assets.
- Your 18-year-old's car is sideswiped in the high school parking lot while parked, causing $3,200 in damage. The other driver leaves no note. Security footage shows the collision but the license plate isn't visible. Your UMPD coverage pays the $3,200 repair minus your deductible. Without UMPD, you'd file under collision coverage (if you carry it) and pay your collision deductible, or pay out-of-pocket if you dropped collision on an older vehicle.
- Your 19-year-old is rear-ended on the highway by a driver who has only the state minimum $25,000 liability coverage. Your teen suffers severe whiplash requiring $42,000 in medical treatment and rehabilitation. The at-fault driver's insurance pays their $25,000 limit, leaving a $17,000 gap. If you carry Underinsured Motorist Coverage (often bundled with UM), it covers the remaining $17,000. This scenario shows why UM/UIM limits should match or exceed your liability limits—if you carry $100,000/$300,000 liability, carry the same UM/UIM limits to ensure your own family has the protection you're providing to others.
Who Needs Uninsured Motorist Coverage Insurance?
Every parent adding a teen driver should carry Uninsured Motorist Coverage at limits matching their liability coverage—if you carry $100,000/$300,000 liability, carry the same UM limits. Teen drivers have higher accident rates, and when they're the victim of an uninsured driver, UM coverage protects your family from catastrophic medical bills and lost wages. This is especially critical if your teen drives in a state with high uninsured motorist rates (Florida, New Mexico, Mississippi, Michigan all exceed 15%) or in urban areas where hit-and-run accidents are more common.
Match your UM limits to your liability limits as a baseline rule—this ensures your teen has the same protection you're providing to others. If your state has an uninsured motorist rate above 10%, treat UM as essential coverage regardless of cost. For families managing tight budgets, keep UMBI at robust limits ($100,000/$300,000) but consider skipping UMPD if you already carry collision coverage with a reasonable deductible.
How Much Does Uninsured Motorist Coverage Insurance Cost?
Adding Uninsured Motorist Coverage to a policy with a teen driver typically costs $10–$30 per month for $50,000/$100,000 UMBI limits and $25,000 UMPD, representing about 5–8% of your total premium increase when adding the teen.
- Uninsured driver rate in your state — Louisiana (11.7%), Florida (20.4%), and New Mexico (21.8%) have among the highest uninsured rates, making UM coverage more valuable and sometimes more expensive
- Your UM coverage limits — matching your liability limits ($100,000/$300,000) costs more than state minimums but provides substantially better protection for your teen
- Whether you add UMPD or only UMBI — some parents skip Property Damage if they carry collision coverage, saving $5–$10 monthly
- Teen's driving record and location — a teen with a ticket or accident may see higher UM premiums in states where insurers can factor this into UM pricing
- Stacking vs non-stacking in multi-vehicle households — Florida, Pennsylvania, and some other states let you 'stack' UM limits across multiple vehicles for higher premiums, multiplying your coverage when the teen is hit while driving
- Mandatory vs optional status — states requiring UM coverage (like Illinois and Kansas) often have lower per-policy costs due to larger risk pools, while optional states may charge more