Best Underinsured Motorist Coverage (UIM) Car Insurance Companies (2021)
You should buy underinsured motorist coverage car insurance if it is available to you and you live somewhere with higher than average rates of uninsured drivers. The best underinsured motorist coverage (UIM) car insurance companies are GEICO and State Farm. Underinsured motorist coverage car insurance rates average just $4.50 per month or $55 annually.
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Written by
D. Gilson, PhD
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Reviewed by
Leslie Kasperowicz
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UPDATED: Dec 14, 2021
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- The best underinsured motorist coverage (UIM) car insurance companies are GEICO and State Farm
- Underinsured motorist car insurance costs $4.50 per month or $55 annually on average
- Underinsured motorist coverage is required by law in 13 states
Whether it’s required where you live or not, the best underinsured motorist coverage (UIM) car insurance companies are GEICO and State Farm.
For an average of $4.50 per month, underinsured motorist coverage protects you if you’re ever involved in an accident with a driver who doesn’t carry enough liability insurance.
Keep reading to compare car insurance companies that offer this coverage and determine if you should add underinsured motorist protection to your car insurance policy.
Find the most affordable underinsured motorist coverage car insurance for you by entering your ZIP code into our free rate tool above and comparing quotes from the top companies in your area.
Table of Contents
What are the best underinsured motorist coverage car insurance companies?
Underinsured motorist coverage protects you if you’re ever hit by a driver who doesn’t carry enough liability car insurance. Currently, it’s required coverage in at least 13 states.
Underinsured motorist coverage costs $4.50 per month or $55 annually on average. But your age, driving record, and ZIP code heavily influence your car insurance rates.
So expect your underinsured motorist coverage car insurance quotes to be between $30 and $80 annually.
But what’s the best underinsured motorist coverage car insurance company?
Compare the average annual car insurance rates that include underinsured motorist coverage from the top providers in the table below.
| Companies | Average Annual Car Insurance Rates |
|---|---|
| Allstate | $2,722.99 |
| GEICO | $1,560.91 |
| Liberty Mutual | $4,331.75 |
| Nationwide | $2,487.58 |
| Progressive | $3,167.91 |
| Safeco | $8,476.85 |
| State Farm | $2,192.80 |
| Travelers | $2,253.96 |
| USAA | $1,690.19 |
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According to our data, the best underinsured motorist coverage car insurance company offering some of the cheapest average rates to drivers is GEICO car insurance company.
GEICO is available to all drivers in every state and often underwrites competitive quotes, even for younger drivers.
State Farm car insurance company also provides cheap underinsured motorist coverage car insurance rates to drivers in most states. However, this company offers fewer car insurance discounts than GEICO.
USAA car insurance company provides the cheapest average car insurance quotes to drivers across the country and offers as many discounts as GEICO. However, only military personnel can use USAA.
Similarly, Allstate car insurance company and Progressive car insurance company are great options for underinsured motorist coverage if you live in an area where these providers are active.
However, Allstate and Progressive are not as competitively priced, nor are they available in every ZIP code.
Because so many different variables impact the cost of car insurance, like ZIP code and age, you may have better luck securing affordable coverage from other providers.
So, check out our honorable mentions for underinsured motorist coverage below.
- American Family car insurance company
- Farmers car insurance company
- Liberty Mutual car insurance company
- Nationwide car insurance company
- Travelers car insurance company
At the end of the day, the best way to find your cheapest underinsured motorist rates is by comparing quotes from multiple providers online.
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What is underinsured motorist coverage?
So, how does underinsured motorist coverage work? Underinsured motorist coverage supplements the at-fault driver’s liability insurance.
This prevents you from being left with any substantial financial burdens after you’ve had a car accident.
There are two types of underinsured motorist coverages, bodily injury, which covers your medical needs, and property damage, which repairs or replaces your vehicle or other personal items.
Drivers can use underinsured motorist coverage benefits for:
- Hospital bills
- Medical care expenses
- Lost wages
- Replacement services required as a result of the accident
Underinsured motorist protection is not the same as uninsured motorist protection.
The primary differences are cost, as UIM coverage tends to be cheaper. Also, uninsured motorist coverage applies specifically if an uninsured driver hits you.
However, underinsured motorist coverage kicks in when the other driver has insurance, but the limits are too low to cover the extent of the damage they caused.
Consider the following underinsured motorist coverage example. You’re hit by a fellow driver carrying only $100,000 in bodily injury liability limits, but your medical damages total $200,000.
With underinsured motorist coverage, you file a claim against your own insurance to fill in the gaps and prevent major out-of-pocket expenses.
According to the Insurance Information Institute (III), one in eight drivers do not carry insurance. Plenty of other drivers don’t have enough insurance to cover a major accident.
How many uninsured drivers are there in your state? Find out in the table below.
| State | Percent of Uninsured Motorists |
|---|---|
| Alabama | 18% |
| Alaska | 15% |
| Arizona | 12% |
| Arkansas | 17% |
| California | 15% |
| Colorado | 13% |
| Connecticut | 9% |
| Delaware | 11% |
| District of Columbia | 16% |
| Florida | 27% |
| Georgia | 12% |
| Hawaii | 11% |
| Idaho | 8% |
| Illinois | 14% |
| Indiana | 17% |
| Iowa | 9% |
| Kansas | 7% |
| Kentucky | 12% |
| Louisiana | 13% |
| Maine | 5% |
| Maryland | 12% |
| Massachusetts | 6% |
| Michigan | 20% |
| Minnesota | 12% |
| Mississippi | 24% |
| Missouri | 14% |
| Montana | 10% |
| Nebraska | 7% |
| Nevada | 11% |
| New Hampshire | 10% |
| New Jersey | 15% |
| New Mexico | 21% |
| New York | 6% |
| North Carolina | 7% |
| North Dakota | 7% |
| Ohio | 12% |
| Oklahoma | 11% |
| Oregon | 13% |
| Pennsylvania | 8% |
| Rhode Island | 15% |
| South Carolina | 9% |
| South Dakota | 8% |
| Tennessee | 20% |
| Texas | 14% |
| Utah | 8% |
| Vermont | 7% |
| Virginia | 10% |
| Washington | 17% |
| West Virginia | 10% |
| Wisconsin | 14% |
| Wyoming | 8% |
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When does underinsured motorist coverage apply to you? It kicks in whenever you’re not at fault in an accident with a driver carrying liability limits that are too low to cover the damage they caused.
In some regions, local laws allow drivers to make claims on two uninsured or underinsured motorist policies.
This is known as stacking your insurance and means you get more money to assist with your medical bills.
However, some providers apply anti-stacking provisions to car insurance policies. Plus, not all states legally allow stacking.
Similarly, some states let you use your underinsured motorist coverage if you’re a victim of a hit-and-run, meaning the at-fault party leaves the scene without exchanging information.
However, you will need to verify your local laws for more details.
How do you file an underinsured motorist claim?
If an underinsured motorist hits you, contact your provider and file a claim specifically under your underinsured motorist policy.
If you or a passenger is injured, you use the bodily injury portion of your underinsured motorist policy. If your property and vehicle were damaged, you would go through the property damage portion.
Typically, with an underinsured motorist claim, the money from the other driver’s liability policy is removed from your benefit amount.
So, you must understand how the payout works for these claims, as you may get less from your underinsured motorist coverage settlement than you expect.
Do I need underinsured motorist coverage?
Currently, 13 states require drivers to carry underinsured motorist coverage to drive on the roads legally.
Most other states offer it but allow drivers to waive the coverage.
If you live in one of the following states, you must buy underinsured motorist coverage car insurance:
- Connecticut
- Illinois
- Maine
- Maryland
- Minnesota
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Oregon
- South Dakota
- Vermont
- Virginia
Technically, according to state laws, New Hampshire and Virginia residents can provide proof of financial responsibility and waive car insurance coverage.
Compare the minimum required levels of underinsured motorist coverage by state in the table below.
| State | Underinsured Motorist Coverage Requirements |
|---|---|
| Connecticut | Bodily injury coverage $25,000 per person, $50,000 per accident |
| Illinois | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Maine | Bodily injury coverage of at least $50,000 per person, $100,000 per accident |
| Maryland | Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $15,000 per accident |
| Massachusetts | Bodily injury coverage of at least $20,000 per person, $40,000 per accident |
| Minnesota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Nebraska | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| New Hampshire | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| New Jersey | Drivers can choose to add coverage |
| New York | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| North Carolina | Bodily injury coverage of at least $30,000 per person, $60,000 per accident Property damage coverage of at least $25,000 per accident |
| North Dakota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Oregon | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| South Dakota | Bodily injury coverage of at least $25,000 per person, $50,000 per accident |
| Vermont | Bodily injury coverage of at least $50,000 per person, $100,000 per accident Property damage coverage of at least $10,000 per accident, subject to a $150 deductible |
| Virginia | Bodily injury coverage of at least $25,000 per person, $50,000 per accident Property damage coverage of at least $20,000 per accident, subject to a $200 deductible |
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Even if UIM coverage is not part of the minimum insurance requirements where you live, it still may be worth adding to your policy.
Your liability insurance does not cover you if you’re hit by another driver, regardless of their insurance status.
However, if you invest in collision insurance, which covers damage to your vehicle, adding property damage underinsured motorist coverage may be necessary.
Similarly, in no-fault states where personal injury protection (PIP) insurance is often required, covering medical costs regardless of fault, adding bodily injury underinsured motorist protection may be redundant.
Medical payments (MedPay) coverage also works hand-in-hand with PIP, so adding bodily injury UIM coverage is likely not needed if you invest in both.
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Best Underinsured Motorist Coverage (UIM) Car Insurance Companies: The Bottom Line
If underinsured motorist coverage is available where you live and you can reasonably afford it, consider adding it to your policy.
In most locations, GEICO and State Farm offer affordable underinsured motorist coverage car insurance rates.
However, you should compare quotes online from different providers to determine the best company for you.
Now that you’re ready to buy underinsured motorist coverage car insurance, enter your ZIP code into our free rate tool below to compare quotes from the top providers near you.