"What is the recommended amount of uninsured motorist coverage I should carry to adequately protect myself financially?"

Uninsured motorist coverage is legally required in 20 states and the District of Columbia, making it mandatory for drivers to carry this coverage.

The Insurance Information Institute recommends purchasing uninsured motorist coverage with limits that are at least equal to bodily injury liability limits.

In 2019, 13.8% of drivers in Mississippi were uninsured, making it the state with the highest rate of uninsured motorists.

The average cost of uninsured motorist coverage is around $15-$30 per year, making it a relatively affordable addition to a policy.

There are two main components of uninsured motorist coverage: Uninsured Motorist Bodily Injury (UMBI) and Uninsured Motorist Property Damage (UMPD).

UMBI coverage typically pays for medical expenses, lost wages, and other damages related to bodily injuries.

In 2019, the five states with the highest rates of uninsured motorists were Mississippi, Michigan, Tennessee, New Mexico, and Washington.

Uninsured motorist coverage can also provide coverage for hit-and-run accidents, where the at-fault driver flees the scene.

Some experts recommend carrying uninsured motorist coverage with limits of $250,000 or more, especially for drivers with high net worth or significant assets.

Uninsured motorist coverage can also cover passengers in the vehicle, not just the driver.

The cost of uninsured motorist coverage depends on many factors, including the insured party's driving history, location, and vehicle type.

In some states, drivers can purchase underinsured motorist coverage, which provides additional coverage if the at-fault driver has insufficient insurance.

Uninsured motorist coverage can also provide coverage for funeral expenses in the event of a fatal accident.

Drivers in urban areas are more likely to be involved in an accident with an uninsured motorist than those in rural areas.

Uninsured motorist coverage can be purchased as an add-on to a liability insurance policy or as a standalone policy.

Related

Sources