What is uninsured motorist coverage and when does it apply?

Uninsured motorist (UM) coverage is a type of auto insurance that compensates you when you are injured by a driver who has no auto insurance or who flees the scene (hit-and-run). Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance but their policy limits are insufficient to fully compensate your damages. Both coverages pay through your own insurance policy. Many states require UM coverage; others make it optional. UIM coverage is particularly important because minimum liability limits in many states (as low as $10,000 or $15,000) can be quickly exhausted by serious injuries. UM/UIM coverage fills this gap and is often the difference between being fully compensated and receiving only a fraction of your damages. If you are injured by an uninsured driver, notify your own insurance company promptly and consult an attorney to navigate the claim process.