Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) pays when an at-fault driver has no insurance. Underinsured motorist coverage (UIM) pays when their liability limit is too low to cover your damages. Both coverages step in after the at-fault driver's insurance is exhausted or confirmed absent, covering medical bills, lost wages, vehicle repair, and in some cases pain and suffering up to your policy limit. You file the claim with your own insurer, not the at-fault driver's.
- You're rear-ended at a stoplight. The at-fault driver has no insurance. Your medical bills total $18,000 and your vehicle repair is $9,000. If you carry $25,000 UM coverage, your insurer pays the full $27,000. Without UM, you sue the driver personally—and most uninsured drivers lack assets to collect against.
- A driver runs a red light and hits you. They carry Kentucky's minimum $25,000 bodily injury liability. Your injuries require $60,000 in treatment. Their insurer pays their $25,000 limit. If you carry $100,000 UIM, your policy pays the remaining $35,000. Without UIM, you're responsible for that $35,000 gap.
- Your parked car is sideswiped overnight. The driver flees. Repair costs $7,500. If your UM property damage coverage limit is $10,000, your insurer pays the full repair minus your deductible. Without it, you file under collision coverage if you have it, or pay out of pocket if you don't.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM/UIM if you drive frequently in areas with high uninsured driver rates, if your health insurance has high deductibles or doesn't cover auto accident injuries fully, or if you're financing a vehicle and can't afford to pay repair costs out of pocket after an uninsured driver hits you. It's also critical if you carry liability-only coverage and have no collision protection—UM property damage becomes your only path to vehicle repair after a not-at-fault crash with an uninsured driver.
Compare your UM cost to your health insurance deductible and the value of your vehicle. If your health plan leaves you with $5,000+ in out-of-pocket costs after a serious accident, and your car is worth more than $3,000, the $8–$18 monthly UM cost is justified. If one in seven drivers is uninsured, you're statistically likely to encounter one every few years of regular driving.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM/UIM coverage typically adds $8–$18 per month to your Kentucky premium, or roughly $95–$215 annually, depending on your selected limits and whether you stack coverage across multiple vehicles.
- Your UM/UIM limit—higher limits cost more, but the cost increase is modest compared to the protection gap it closes.
- Whether you choose stacked or unstacked coverage—stacked UM multiplies your per-vehicle limit by the number of insured vehicles, roughly doubling the cost.
- Your county's uninsured driver rate—areas with higher uninsured motorist populations see slightly higher UM premiums.
- Your liability limits—carriers often require UM limits to match or stay below your liability limits, so higher liability coverage indirectly raises UM cost.
- Claim history on UM coverage—if you've filed UM claims before, some carriers price it higher at renewal.