DEFINITION of 'Uninsured Motorist Coverage - UM'
An addition to a standard automobile insurance policy that provides coverage in the event the other driver is both legally responsible for the accident and is not insured. Uninsured motorist coverage is required in some states, and optional in most others, and pays for injuries to the policy holder and his or her passengers, and in certain cases for damage to property. It is recommended to have UM coverage.
BREAKING DOWN 'Uninsured Motorist Coverage - UM'
An uninsured motorist is one who has no insurance, does not have insurance that meets state-required minimum liability amounts, or whose insurance company is unwilling or unable to pay the claim. A hit-and-run driver would also be considered an uninsured motorist. Without this coverage, a person holding a regular automobile insurance policy may not receive payments if they are involved in an accident where the other party is at fault and uninsured.