Best Underinsured Motorist (UIM) Coverage Auto Insurance Companies (2024)
The best underinsured motorist coverage (UIM) auto insurance companies are GEICO and State Farm. On average, underinsured motorist coverage auto insurance rates cost $55 annually or just an additional $4.50 per month. Required by law in 13 states, you should choose to buy underinsured motorist coverage auto insurance, especially if you live in an area with a high number of uninsured drivers.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
UPDATED: Oct 13, 2023
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 13, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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- The best underinsured motorist coverage (UIM) auto insurance companies are Geico and State Farm
- On average, underinsured motorist coverage costs between $33 and $76 per year or $55 on average
- Underinsured motorist coverage is legally required in 13 states
Currently, 13 states legally require drivers to carry underinsured motorist coverage. The best underinsured motorist coverage (UIM) auto insurance companies are Geico and State Farm.
Driving without insurance is illegal in most states, but an estimated 13% of people are uninsured or underinsured. Fortunately, underinsured motorist coverage pays for your damages if you’re ever involved in an accident with one of those drivers.
Keep reading to determine if you need this coverage, compare rates, and discover tips for securing cheap auto insurance.
After learning about affordable underinsured motorist coverage auto insurance, remember to enter your ZIP code into our free rate tool above to receive quotes from the best companies near you.
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What are the best underinsured motorist coverage auto insurance companies?
Underinsured motorist coverage is legally required in 14 states but is recommended in states where it’s available for anyone who can reasonably afford it.
How much does underinsured motorist coverage cost? Typically, underinsured motorist coverage auto insurance rates average $55 annually or $4.50 per month.
However, that price ranges from $33 to $76 depending on your ZIP code, insurance provider, age, and driving record.
Who are the best underinsured motorist auto insurance companies? Compare average annual rates from some of the top providers in the table below.
Average Annual Auto Insurance Rates by Company
| Auto Insurance Companies | Average Annual Auto Insurance Rates |
|---|---|
| Allstate | $2,722.99 |
| Geico | $1,560.91 |
| Liberty Mutual | $4,331.75 |
| Nationwide | $2,487.58 |
| Progressive | $3,167.91 |
| Safeco | $8,476.85 |
| State Farm | $2,192.80 |
| Travelers | $2,253.96 |
| USAA | $1,690.19 |
Keep in mind that the annual premiums above do not reflect only underinsured motorist coverage prices. Instead, it represents auto insurance policies that also include a portion of underinsured motorist coverage.
The best underinsured motorist coverage auto insurance company is Geico Auto Insurance Company.
Available in all 50 states, Geico offers affordable base quotes to drivers from all walks of life, including teens and younger customers.
Plus, the company provides substantial discounts that stack to lead to even more significant savings.
Another excellent option for underinsured motorist coverage is State Farm Auto Insurance Company. Also available in every state, State Farm is typically one of the most competitive providers in any given ZIP code.
However, this provider does not offer as many discounts as Geico.
Finally, USAA Auto Insurance Company usually provides the cheapest quotes around and is our third recommended company. However, only military personnel and their families are eligible to use its services.
Many different variables influence the cost of auto insurance. For example, your ZIP code, driving record, coverage needs, age, and even car make and model all impact your total premiums.
So if our top three recommendations don’t work out for you, check out our honorable mentions:
- Allstate Auto Insurance Company
- Liberty Mutual Auto Insurance Company
- Nationwide Auto Insurance Company
- Progressive Auto Insurance Company
- Travelers Auto Insurance Company
Ultimately, to secure your cheapest underinsured motorist coverage auto insurance quotes, compare rates online from multiple providers.
What is underinsured motorist coverage?
Underinsured motorist coverage fills the gaps in the other driver’s liability insurance if you’re hit by someone who does not carry large enough insurance limits.
Do you live in a state with a high number of uninsured motorists? Find out in the table below.
Percent of Uninsured Motorists by State
| State | Percent of Uninsured Motorists |
|---|---|
| Alabama | 18% |
| Alaska | 15% |
| Arizona | 12% |
| Arkansas | 17% |
| California | 15% |
| Colorado | 13% |
| Connecticut | 9% |
| Delaware | 11% |
| District of Columbia | 16% |
| Florida | 27% |
| Georgia | 12% |
| Hawaii | 11% |
| Idaho | 8% |
| Illinois | 14% |
| Indiana | 17% |
| Iowa | 9% |
| Kansas | 7% |
| Kentucky | 12% |
| Louisiana | 13% |
| Maine | 5% |
| Maryland | 12% |
| Massachusetts | 6% |
| Michigan | 20% |
| Minnesota | 12% |
| Mississippi | 24% |
| Missouri | 14% |
| Montana | 10% |
| Nebraska | 7% |
| Nevada | 11% |
| New Hampshire | 10% |
| New Jersey | 15% |
| New Mexico | 21% |
| New York | 6% |
| North Carolina | 7% |
| North Dakota | 7% |
| Ohio | 12% |
| Oklahoma | 11% |
| Oregon | 13% |
| Pennsylvania | 8% |
| Rhode Island | 15% |
| South Carolina | 9% |
| South Dakota | 8% |
| Tennessee | 20% |
| Texas | 14% |
| Utah | 8% |
| Vermont | 7% |
| Virginia | 10% |
| Washington | 17% |
| West Virginia | 10% |
| Wisconsin | 14% |
| Wyoming | 8% |
Suppose not all of your medical and property damage needs are covered by the at-fault driver’s insurance policy.
In that case, you can file a claim through your underinsured motorist coverage to avoid out-of-pocket expenses.
Technically, there are two types of underinsured motorist coverage, bodily injury, and property damage.
Bodily injury applies to your medical needs, while property damage applies to your vehicle.
UIM insurance claims cover hospital bills, medical care expenses, lost wages, and replacement services associated with an accident with an underinsured driver.
When does underinsured motorist coverage apply to you? Anytime you’re not at fault for causing an accident, and the other driver doesn’t carry enough liability coverage to pay for your damages.
So what is the difference between underinsured motorist coverage and uninsured motorist coverage?
The two policies are very similar, but uninsured motorist coverage costs a little more because it protects you against drivers with no insurance whatsoever.
According to the Insurance Information Institute (III), up to 13% of drivers do not carry insurance or one and eight people on the roads.
If you’re a victim of a hit-and-run, meaning the driver leaves the scene without exchanging information, some states allow you to use uninsured motorist coverage to pay for those damages.
Can you stack underinsured and uninsured motorist coverage? Underinsured and uninsured motorist coverages sometimes stack depending on your state laws, meaning your protection levels increase.
Similarly, you can typically apply your coverage limits to every driver named on your policy.
How do you file an underinsured motorist claim?
How does underinsured motorist coverage work when you need to file a claim? Fortunately, the process is as simple as traditional insurance claims.
After an accident occurs with a driver carrying insubstantial insurance limits, report it to your own insurance provider in detail. Take photos of the scene if possible. Also, file a police report.
Afterward, wait for the adjuster to investigate your claim and present you with your underinsured motorist coverage settlement.
At this point, it’s crucial you understand the potential payout from an underinsured motorist claim.
In some states, the amount of liability insurance the other driver provides is subtracted from your UIM limits, so you might not get back as much as you assume. So check your local laws for more details.
Finally, accept the payment if you believe it’s fair. Usually, you’ll receive a reimbursement check in the mail from your provider. Filing an uninsured motorist claim works the same way.
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Do you need underinsured motorist coverage?
Some states legally require drivers to carry minimum limits of underinsured motorist coverage.
Other states offer it but allow individuals to waive the coverage.
You’re obligated by law to carry some underinsured motorist protection if you live in:
- Connecticut
- Illinois
- Maine
- Maryland
- Minnesota
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Dakota
- Vermont
- Virginia
However, New Hampshire and Virginia laws allow residents to waive auto insurance by providing proof of financial responsibility.
Below, compare states where underinsured motorist coverage is required or available.
Underinsured Motorist Coverage Limits Required by State
| State | Underinsured Motorist Coverage Requirements |
|---|---|
| Connecticut | Bodily injury coverage $25,000 per person, $50,000 per accident |
| Illinois | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Maine | Bodily injury coverage of at least $50,000 per person, $100,000 per accident |
| Maryland | Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $15,000 per accident |
| Massachusetts | Bodily injury coverage of at least $20,000 per person, $40,000 per accident |
| Minnesota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Nebraska | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| New Hampshire | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| New Jersey | Drivers can choose to add coverage |
| New York | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| North Carolina | Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $25,000 per accident |
| North Dakota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Oregon | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| South Dakota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Vermont | Bodily injury coverage of at least $50,000 per person, $100,000 per accident Property damage coverage of at least $10,000 per accident, subject to a $150 deductible |
| Virginia | Bodily injury coverage of at least $25,000 per person, $50,000 per accident Property damage coverage of at least $20,000 per accident, subject to a $200 deductible |
Even if underinsured motorist protection is not required where you live, know that your liability insurance does not protect you if an uninsured or underinsured driver hits you.
Other insurance options that offer similar safeguards to uninsured and underinsured motorist coverage include personal injury protection (PIP) and collision coverage.
PIP insurance is not available in every state but is usually required in no-fault states. It covers your medical costs after an accident regardless of fault. Medical payments coverage (MedPay) is similar to PIP but is not quite as broad.
In no-fault states with larger PIP limits, or if you carry MedPay, adding underinsured motorist coverage could be unnecessary.
Collision insurance protects your vehicle and property in your car if you’re involved in an accident while in motion. So if an underinsured driver hits you, you can rely on this coverage to replace your damaged property.
So for some drivers who invest in collision insurance, adding underinsured motorist property damage protection may be redundant.
There’s usually a deductible associated with both collision and underinsured motorist coverage that you must pay for out of pocket.
So if UIM insurance is not required in your state, you invest in MedPay or PIP insurance and purchase collision coverage, then you don’t need underinsured motorist coverage.
But underinsured motorist protection typically costs much less than MedPay, PIP, and collision policies.
Plus, if you invest in more than one coverage type, you can sometimes use them in tandem to avoid out-of-pocket expenses.
So the truth about uninsured motorist coverage and underinsured motorist coverage is that, for those who can afford it, it’s worth adding to your policy.
Best Underinsured Motorist Coverage (UIM) Auto Insurance Companies: The Bottom Line
Underinsured motorist coverage is a wise investment and saves you from paying out of pocket after an accident with another driver who is not following the law.
The companies that offer the cheapest average underinsured motorist coverage rates are Geico, State Farm, and USAA.
But, fortunately, UIM policies are usually very affordable through most providers.
Now that you know how to buy underinsured motorist coverage auto insurance, compare quotes and find the best coverage for you by entering your ZIP code into our free rate tool below.
Frequently Asked Questions
What is underinsured motorist (UIM) coverage?
Underinsured motorist (UIM) coverage is an optional add-on to auto insurance policies that provides protection if you’re involved in an accident with a driver who has inadequate insurance coverage to pay for your damages.
Why is underinsured motorist (UIM) coverage important?
UIM coverage is important because it helps protect you financially in case you’re involved in an accident with an underinsured driver. It can cover medical expenses, lost wages, and other damages that exceed the limits of the at-fault driver’s insurance.
What factors should I consider when selecting an auto insurance company for underinsured motorist (UIM) coverage?
When choosing an auto insurance company for UIM coverage, consider the following factors:
- Coverage limits: Ensure the company offers sufficient coverage limits to meet your needs.
- Reputation: Look for companies with a good reputation for customer service and claims handling.
- Cost: Compare premiums across different insurers to find the most affordable option for the coverage you need.
- Financial stability: Check the company’s financial strength ratings to ensure they can fulfill their obligations in case of a claim.
What are the advantages and disadvantages of underinsured motorist (UIM) coverage?
Pros:
- Financial protection: UIM coverage provides an additional layer of financial protection in case you’re involved in an accident with an underinsured driver.
- Peace of mind: Having UIM coverage gives you peace of mind knowing that you’re protected from potential financial burdens resulting from an accident.
- Broad coverage: UIM coverage can help cover medical expenses, lost wages, pain and suffering, and other damages beyond what the at-fault driver’s insurance may cover.
Cons:
- Additional cost: UIM coverage is an optional add-on to your auto insurance policy, so it will increase your premiums.
- Coverage limits: The amount of coverage available through UIM may vary depending on the insurer and the policy. Make sure to review the limits to ensure they meet your needs.
- Not required by law: UIM coverage is not mandatory in all states, so it’s up to you to decide if the added cost is worth the protection it provides.
Can I purchase underinsured motorist (UIM) coverage if I have a minimum coverage auto insurance policy?
Yes, in most cases, you can purchase underinsured motorist (UIM) coverage as an add-on to your minimum coverage auto insurance policy. However, the availability and specific terms may vary depending on your insurance provider and state regulations. It’s recommended to consult with your insurance company to understand the options available to you.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.