Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when another driver causes a crash but lacks adequate insurance. UM pays when the at-fault driver has zero coverage. UIM kicks in when their liability limits fall short of your actual damages. Both coverages pay through your own carrier, not the other driver's—you file the claim with the company you pay premiums to, even though someone else caused the collision.
- A driver with no insurance rear-ends you at a stoplight. You have $8,000 in medical bills and $4,500 in vehicle damage. Your uninsured motorist bodily injury coverage pays the $8,000 in medical costs. Your uninsured motorist property damage coverage pays the $4,500 repair bill, minus your deductible. Without UM coverage, you'd pay all $12,500 out of pocket or sue the uninsured driver—a process that rarely recovers meaningful money.
- A driver with Delaware's minimum $25,000 bodily injury limit causes a crash that leaves you with $60,000 in medical bills. Their liability policy pays its $25,000 maximum. Your underinsured motorist coverage pays the remaining $35,000. Without UIM, you'd absorb that $35,000 gap yourself. This scenario is common—minimum-limit policies are cheap, and carriers sell millions of them to drivers who don't understand the exposure they're creating for others.
- A vehicle sideswipes you on Route 1 and flees. You never identify the driver. Your uninsured motorist coverage treats this as an uninsured claim and pays for your injuries and vehicle damage. Most policies require you to report the hit-and-run to police within 24 hours and provide a sworn statement. Without UM, you have no collision coverage to fall back on unless you carry separate collision insurance.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry uninsured and underinsured motorist coverage if you cannot afford to pay $20,000–$100,000 in medical bills and vehicle repairs out of pocket after a crash someone else caused. This coverage is especially important in Delaware, where 13% of drivers carry no insurance and many others carry only the $25,000 minimum bodily injury limit—an amount that won't cover a serious injury. If you finance or lease your vehicle, your lender may require UM coverage as part of the loan agreement.
Compare the annual UM premium to your health insurance deductible and out-of-pocket maximum. If your health plan has a $6,000 out-of-pocket max and UM costs $150 per year, you're paying $150 to avoid a $6,000 exposure—plus vehicle damage and any income loss your health plan won't cover. Most drivers find that math compelling. If you carry collision coverage, you already have vehicle protection for at-fault and single-vehicle crashes, but collision won't help if an uninsured driver totals your car and you want to recover your deductible.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8–$18 per month to your premium, or $96–$216 annually.
- Coverage limits you select—higher UM/UIM limits cost more, but the incremental cost from $25,000 to $100,000 is often under $5 per month.
- Your ZIP code's uninsured driver rate—areas with higher percentages of uninsured motorists see slightly higher UM premiums.
- Whether you add uninsured motorist property damage or rely only on bodily injury coverage—UMPD typically adds $3–$6 monthly.
- Stacking versus non-stacking coverage in states that allow it—Delaware does not permit stacking, so this factor doesn't apply here.
- Your liability limits—some carriers price UM as a percentage of your liability coverage, so higher liability limits can push UM premiums up slightly.