Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Oct 28, 2021

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Key Takeaways

  • Some of the best underinsured motorist (UIM) coverage car insurance companies include GEICO, State Farm, Allstate, Nationwide, and Progressive
  • Underinsured motorist (UIM) covers the policyholder’s expenses when the policyholder is in an accident caused by another driver that doesn’t have enough liability insurance
  • Some states require that you carry underinsured motorist (UIM) car insurance

Liability car insurance pays for any damages you cause in an accident. It also protects the other person who was not at fault so they don’t have to pay out of pocket.

However, if the at-fault driver doesn’t have enough liability insurance, the excess expenses will have to be paid by someone.

Fortunately, underinsured motorist (UIM) car insurance ensures that these expenses don’t go unpaid if you’re in an accident with another driver who is at fault.

Scroll down to compare the best underinsured motorist (UIM) coverage car insurance companies and read underinsured motorist coverage examples to learn how UIM coverage works in different situations.

If you’d like to get free underinsured motorist (UIM) car insurance quotes, enter your ZIP code into our quote comparison tool above.

What are the best underinsured motorist (UIM) coverage car insurance companies?

Underinsured motorist (UIM) coverage is offered by most major car insurance companies. Below is a list of the best underinsured motorist (UIM) coverage car insurance companies:

GEICO

GEICO offers some of the cheapest car insurance rates. It is also known for having good customer service. There are multiple ways to file claims, and GEICO’s claims process is fast and straightforward.

State Farm

State Farm also provides affordable underinsured motorist (UIM) car insurance. It also sells a variety of other car insurance options, which makes it easy to customize your policy.

Allstate

Allstate is another major car insurance company that provides UIM coverage. It also offers car insurance discounts that help customers save on their car insurance rates.

Nationwide

Nationwide has UIM coverage and many other types of insurance and financial products, making it easy to keep most of your financial planning in one place.

Progressive

Progressive sells underinsured motorist (UIM) coverage and other car and home insurance products that make bundling simple.

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What is underinsured motorist (UIM) coverage?

How does underinsured motorist coverage work?

Underinsured motorist (UIM) car insurance covers expenses for the policyholder when you are in an accident where the other driver does not have enough liability car insurance to cover damages.

UIM coverage will only cover the policyholder if the accident is not their fault. For example, suppose the at-fault driver’s liability covers the accident’s expenses. In that case, the underinsured motorist coverage does not need to be used.

In some states, UIM coverage can also be used for a hit-and-run.

If the at-fault driver has enough liability coverage, but the insurance company denies the claim or cannot pay the claim for some reason, your UIM coverage may be able to cover your expenses.

An underinsured motorist coverage settlement may pay for your medical expenses, lost wages, pain and suffering, funeral expenses, and possibly damage to your vehicle or home.

Underinsured motorist coverage is broken down into bodily injury (UIM BI) and property damage (UIM PD), similar to liability. Therefore, UIM BI covers medical and rehabilitation expenses, while UIM PD covers damage to your property.

Coverage limits are typically expressed by three numbers. For example, if you have limits of 25/50/25, this means that you have UIM BI of $25,000 per person and $50,000 per accident and UIM PD of $25,000.

How much are underinsured motorist (UIM) coverage car insurance rates?

Underinsured motorist (UIM) car insurance rates are typically much cheaper than liability car insurance. When you comparison shop, you can find UIM coverage for around $30 per year.

Three main factors will determine how much you will pay for UIM coverage:

  1. First, the insurance company that you choose will essentially decide how much to charge for coverage;
  2. Second, your rates will also depend on how much UIM coverage you purchase;
  3. Lastly, a significant determinant of your rates is the percentage of uninsured or underinsured drivers in your state.

UIM car insurance rates are also impacted by the number of uninsured drivers in your state. 

Percentage of Uninsured Drivers by State
StatePercentage of Uninsured Drivers
Alabama19.5%
Alaska16.1%
Arizona11.8%
Arkansas19.3%
California16.6%
Colorado16.3%
Connecticut6.3%
Delaware8.5%
Florida20.4%
Georgia12.4%
Hawaii9.3%
Idaho13.2%
Illinois11.8%
Indiana15.8%
Iowa11.3%
Kansas10.9%
Kentucky13.9%
Louisiana11.7%
Maine4.9%
Maryland14.1%
Massachusetts3.5%
Michigan25.5%
Minnesota9.9%
Mississippi29.4%
Missouri16.4%
Montana8.5%
Nebraska9.3%
Nevada10.4%
New Hampshire6.1%
New Jersey3.1%
New Mexico21.8%
New York4.1%
North Carolina7.4%
North Dakota13.0%
Ohio13.0%
Oklahoma13.4%
Oregon10.7%
Pennsylvania6.0%
Rhode Island16.5%
South Carolina10.9%
South Dakota7.4%
Tennessee23.7%
Texas8.3%
Utah6.5%
Vermont8.8%
Virginia10.5%
Washington21.7%
Washington, D.C.19.1%
West Virginia9.2%
Wisconsin13.3%
Wyoming5.8%
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If more underinsured drivers are in your state, you are more likely to use your UIM insurance, so you will likely end up paying more for coverage.

What is insurance stacking?

Stacking is the process of combining coverage limits to increase the amount you can claim. Depending on which state you live in, you may be able to stack coverage from two different policies or two different vehicles.

You can stack insurance by making claims on two different UIM car insurance policies or the same policy if you have more than one vehicle insured.

For example, if you have two different UIM policies, you would first make a claim with the at-fault driver’s liability policy and then one of your UIM policies.

However, if both of these are not sufficient to cover your expenses, you could make a claim with the second UIM policy.

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Do I need underinsured motorist (UIM) coverage?

Whether or not you buy underinsured motorist (UIM) car insurance will depend primarily on the insurance coverage required by your state. The table below lists the UIM coverage required by law in the following states:

Minimum State Requirements
StateInsurance requiredMinimum liability limits
AlabamaBI & PD Liab25/50/25
AlaskaBI & PD Liab50/100/25
ArizonaBI & PD Liab15/30/10
ArkansasBI & PD Liab, PIP25/50/25
CaliforniaBI & PD Liab15/30/5
ColoradoBI & PD Liab25/50/15
ConnecticutBI & PD Liab, UM, UIM25/50/20
DelawareBI & PD Liab, PIP25/50/10
District of ColumbiaBI & PD Liab, UM25/50/10
FloridaPD Liab, PIP10/20/10
GeorgiaBI & PD Liab25/50/25
HawaiiBI & PD Liab, PIP20/40/10
IdahoBI & PD Liab25/50/15
IllinoisBI & PD Liab, UM, UIM25/50/20
IndianaBI & PD Liab25/50/25
IowaBI & PD Liab20/40/15
KansasBI & PD Liab, PIP25/50/25
KentuckyBI & PD Liab, PIP, UM, UIM25/50/25
LouisianaBI & PD Liab15/30/25
MaineBI & PD Liab, UM, UIM, Medpay50/100/25
MarylandBI & PD Liab, PIP, UM, UIM30/60/15
MassachusettsBI & PD Liab, PIP20/40/5
MichiganBI & PD Liab, PIP20/40/10
MinnesotaBI & PD Liab, PIP, UM, UIM30/60/10
MississippiBI & PD Liab25/50/25
MissouriBI & PD Liab, UM25/50/25
MontanaBI & PD Liab25/50/20
NebraskaBI & PD Liab, UM, UIM25/50/25
NevadaBI & PD Liab25/50/20
New HampshireFR only25/50/25
New JerseyBI & PD Liab, PIP, UM, UIM15/30/5
New MexicoBI & PD Liab25/50/10
New YorkBI & PD Liab, PIP, UM, UIM25/50/10
North CarolinaBI & PD Liab, UM, UIM30/60/25
North DakotaBI & PD Liab, PIP, UM, UIM25/50/25
OhioBI & PD Liab25/50/25
OklahomaBI & PD Liab25/50/25
OregonBI & PD Liab, PIP, UM, UIM25/50/20
PennsylvaniaBI & PD Liab, PIP15/30/5
Rhode IslandBI & PD Liab25/50/25
South CarolinaBI & PD Liab, UM, UIM25/50/25
South DakotaBI & PD Liab, UM, UIM25/50/25
TennesseeBI & PD Liab25/50/15
TexasBI & PD Liab, PIP30/60/25
UtahBI & PD Liab, PIP25/65/15
VermontBI & PD Liab, UM, UIM25/50/10
VirginiaBI & PD Liab (9), UM, UIM25/50/20
WashingtonBI & PD Liab25/50/10
West VirginiaBI & PD Liab, UM, UIM25/50/25
WisconsinBI & PD Liab, UM, Medpay25/50/10
WyomingBI & PD Liab25/50/20
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Even if it is not required in your state, there may be some situations in which UIM coverage may be beneficial.

For example, if you don’t have any other type of insurance that would cover your medical bills after an accident with an underinsured driver, UIM may be a good option.

Even if you have good health insurance, you may be able to use UIM insurance to avoid paying a deductible or expensive co-pays. Underinsured motorist coverage may also cover pain and suffering, lost wages, or rehabilitation costs after an accident.

If you have collision or comprehensive coverage, or personal injury protection (PIP) car insurance, UIM may not be necessary since these types of coverage will cover your injuries.

However, UIM may be a good alternative for these coverage types if you’re trying to save on car insurance since UIM car insurance rates are often cheaper.

Enter your ZIP code into our free quote comparison tool below to find an affordable underinsured motorist (UIM) car insurance company near you.