Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage pays your medical bills, lost wages, and vehicle repair costs when another driver causes a crash but has no insurance or flees the scene. Underinsured motorist coverage activates when the at-fault driver's liability limits are too low to cover your damages. Both coverages protect you from paying out-of-pocket for injuries and property damage someone else caused. Maryland law requires insurers to offer both coverages at limits matching your liability policy, but you can reject them or select lower limits in writing.
- A driver runs a red light and hits your car, causing $18,000 in medical bills and $9,000 in vehicle damage, then flees the scene. Your uninsured motorist bodily injury coverage pays the $18,000 in medical costs up to your policy limit. Your uninsured motorist property damage coverage pays the $9,000 vehicle repair after you pay your deductible. Without this coverage, you would file through your health insurance for medical bills and pay the vehicle damage yourself or through collision coverage if you carry it.
- Another driver rear-ends you at a stoplight, causing $45,000 in medical bills and $12,000 in lost wages. The at-fault driver carries Maryland's minimum liability limit of $30,000 per person. Their liability insurance pays the first $30,000. Your underinsured motorist coverage pays the remaining $27,000 in medical bills and lost wages, up to your underinsured motorist limit. If you rejected underinsured motorist coverage or carry limits below $57,000, you pay the difference out-of-pocket.
- An uninsured driver crosses the centerline and totals your vehicle, valued at $22,000. Your uninsured motorist property damage coverage pays the $22,000 actual cash value minus your deductible. If you rejected this coverage or your state does not require it, you would file through collision coverage if you carry it, or absorb the total loss yourself. The at-fault driver is legally liable, but collecting from an uninsured individual through civil court often recovers nothing.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
Drivers who cannot afford to pay medical bills or vehicle repair costs out-of-pocket if an uninsured driver hits them should carry this coverage. Maryland has an uninsured driver rate near 12 percent, meaning roughly one in eight drivers on the road has no liability insurance. If you drive in areas with high uninsured rates, commute in heavy traffic, or carry low health insurance coverage with high deductibles, uninsured motorist coverage protects you from absorbing costs another driver is legally responsible for but cannot pay.
Compare your uninsured motorist premium to your health insurance deductible and out-of-pocket maximum, and to your vehicle's replacement cost. If the annual uninsured motorist premium is less than 5 percent of your potential out-of-pocket medical or vehicle loss, carry it. If you would struggle to pay a $15,000 medical bill or vehicle repair after an uninsured driver hits you, this coverage is worth the cost.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8 to $18 per month to a Maryland auto insurance policy, or $96 to $216 annually, depending on your selected limits and whether you include property damage coverage.
- Your selected uninsured motorist limits — higher limits cost more, and Maryland allows you to choose limits lower than your liability coverage if you reject the matching-limits offer in writing.
- Whether you add uninsured motorist property damage coverage in addition to bodily injury coverage — property damage coverage is optional in Maryland and adds $3 to $7 per month.
- Stacking election — if you insure multiple vehicles on one policy, stacked uninsured motorist coverage combines the limits from all vehicles, increasing your total available coverage and your premium by 15 to 30 percent.
- Your ZIP code and county — areas with higher rates of uninsured drivers, such as Baltimore City, typically have higher uninsured motorist premiums because the risk of filing a claim is greater.
- Your liability limits — because Maryland requires insurers to offer uninsured motorist coverage at limits matching your liability policy, drivers who carry high liability limits pay more for the matching uninsured motorist offer unless they reject it and select lower limits.