Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) pays for your medical bills, lost wages, and vehicle damage when an at-fault driver has no insurance. Underinsured motorist coverage (UIM) kicks in when the at-fault driver's liability limits are too low to cover your full claim. Both coverages protect you from paying out-of-pocket for someone else's mistake when their insurance is absent or inadequate.
- You're rear-ended at a stoplight by a driver with no insurance. You have $8,000 in medical bills and $5,000 in vehicle damage. Your UM coverage pays the full $13,000 because the at-fault driver has zero coverage to tap. Without UM, you'd file through your health insurance for medical costs and pay the vehicle damage yourself or file a lawsuit you're unlikely to collect on.
- A driver runs a red light and hits you, causing $40,000 in injuries and $12,000 in vehicle damage. The at-fault driver carries Louisiana's minimum $15,000 per-person bodily injury limit. Their policy pays $15,000, leaving you $37,000 short. Your UIM coverage pays the remaining $37,000 up to your policy limits, protecting you from a massive out-of-pocket loss.
- You're sideswiped by a driver who flees the scene. You have $6,000 in vehicle damage and $3,000 in medical bills. Your UM coverage treats this as an uninsured driver claim and pays the full $9,000. Without UM, you'd rely on collision coverage for the vehicle damage and health insurance for medical costs, both of which carry deductibles and may not cover everything.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM and UIM coverage if you drive regularly in Louisiana, where one in eight drivers is uninsured. It's especially critical if you don't have health insurance with low out-of-pocket maximums, if you're the primary earner in your household and can't afford weeks of unpaid recovery, or if you drive a vehicle worth more than your collision deductible and want hit-and-run protection.
Match your UM and UIM limits to your liability limits — if you carry $50,000 per person in liability, carry the same in UM. This ensures you're as protected from uninsured drivers as others are protected from you. If you can't afford a $10,000 medical bill or vehicle replacement out-of-pocket, the $10–$15 monthly cost is justified.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM and UIM coverage typically add $8–$18 per month to your premium, or $96–$216 annually, depending on your coverage limits and vehicle value.
- Your selected UM/UIM limits — higher limits cost more, but the incremental cost from $25,000 to $50,000 per person is usually under $5 per month.
- Whether you stack coverage across multiple vehicles on your policy — stacking doubles or triples your available limits but increases premium by 30–50%.
- Your ZIP code's uninsured driver rate — parishes with higher uninsured rates see slightly higher UM premiums to reflect claim frequency.
- Whether you add uninsured motorist property damage (UMPD) — this covers vehicle damage and typically adds $3–$6 per month.
- Your claims history — a prior UM claim may increase your rate at renewal, though less than an at-fault accident would.