Uninsured Motorist Coverage for Teen Drivers
When the driver who hits your teen has no insurance or too little, this is the coverage that pays for your child instead of leaving you stuck.
By Teen Driver Editorial Team. Reviewed by J. Robert Smith, Licensed Insurance Agent, former CIC · NPN 10378680 (verify). Published .
Uninsured motorist coverage for teen drivers is the part of an auto policy that pays for your teen’s injuries, and sometimes vehicle damage, when an at-fault driver has no insurance. Underinsured motorist coverage fills the gap when the other driver’s limits run out. Both protect your family from someone else’s failure to carry enough insurance.
Most parents shop for coverage that protects other people, or that fixes their own car. This is the coverage that protects your teen from the driver who should have paid and cannot. It is easy to overlook and often inexpensive, and for a household with a new driver it fills one of the biggest gaps in a policy.
What is uninsured motorist coverage for teen drivers?
Uninsured motorist coverage pays when an at-fault driver who hits your teen carries no insurance. It usually splits into two parts: uninsured motorist bodily injury, which covers medical bills and lost income, and uninsured motorist property damage, which repairs your teen’s car in the states that offer it. Underinsured motorist coverage works the same way when the other driver’s limits are too low.
Think of it as coverage that follows your teen, not the other driver. When someone with no policy runs a red light and hurts your child, your own uninsured motorist coverage steps in where the at-fault driver’s insurance should have been.
| Coverage | When it pays | What it covers |
|---|---|---|
| Uninsured motorist bodily injury (UMBI) | At-fault driver has no insurance | Your teen’s medical bills, lost income, pain and suffering |
| Uninsured motorist property damage (UMPD) | An uninsured at-fault driver damages the car | Repairs to your teen’s vehicle (offered in some states) |
| Underinsured motorist (UIM) | The at-fault driver’s limits are too low | The gap between their limit and your teen’s costs |
Do teens need uninsured/underinsured motorist coverage?
Most families should carry it. Nationally, 15.4% of drivers, about one in seven, were uninsured in 2023, and another 18% were underinsured, per the Insurance Research Council. Teens log many miles alongside those drivers, so uninsured motorist coverage protects your child’s medical care when the at-fault driver cannot pay.
Young drivers spend a lot of time on the road, often in the after-school and weekend hours. If your teen is hurt by an uninsured driver, your health insurance may cover some care, but uninsured motorist coverage also handles lost income, and pain and suffering that health plans do not. Our guide to what happens to your rates after a teen accident explains the claims side.
How is UM/UIM different from full coverage?
Full coverage protects your own car through collision and comprehensive, no matter who is at fault. Uninsured and underinsured motorist coverage is different: it steps in only when another driver causes the crash and cannot pay, and it covers your teen’s injuries, not just the car. A teen can carry one, both, or neither depending on the policy.
This is the piece parents most often confuse. Collision and comprehensive, the core of full coverage for a teen driver, repair your own car. Uninsured and underinsured motorist coverage protects your teen’s body and finances from someone else’s mistake. You can, and usually should, carry both. See our coverage guide for how the pieces fit.
Which states require uninsured motorist coverage?
Twenty states plus Washington, D.C., require uninsured motorist coverage, while the rest make it optional or let you reject it in writing, according to the Insurance Information Institute. Requirements and minimum limits differ by state and change, so check your state’s department of insurance. Even where it is optional, most agents recommend matching your UM limits to your liability limits.
Because the rules differ so much, the smartest move is to confirm your own state’s requirements and typical limits. Our cost-to-add-a-teen-by-state guide and the state coverage hub can help you start. When you are ready to set limits, talk to an agent who can match your UM/UIM limits to your liability limits.
Match your UM/UIM to your liability limits
A common mistake is buying high liability limits to protect others, then leaving UM/UIM at the state minimum. That leaves your own teen underprotected against uninsured drivers. Most agents suggest setting UM/UIM to match your bodily injury liability limits.
Frequently asked questions
Is uninsured motorist coverage worth it for a teen driver?
For most families, yes. With 15.4% of drivers uninsured and 18% underinsured in 2023, per the Insurance Research Council, the odds a teen shares the road with an unprotected driver are real. Uninsured motorist coverage pays your teen’s medical bills when the at-fault driver cannot, often for a modest premium.
What is the difference between uninsured and underinsured motorist coverage?
Uninsured motorist coverage pays when the at-fault driver has no insurance at all. Underinsured motorist coverage pays when that driver has insurance, but their liability limit is too low to cover your teen’s injuries. Many policies bundle the two as UM/UIM, and several states require you to carry them together.
Does uninsured motorist coverage cover a hit-and-run?
In most states, yes. A hit-and-run driver is treated as uninsured because they cannot be identified, so uninsured motorist bodily injury typically covers your teen’s injuries. Rules for property damage vary, and some states require physical contact or a police report. Check your state’s requirements and your specific policy language with your agent.
Sources
- Insurance Research Council (IRC) — Uninsured and Underinsured Motorists: 2017 to 2023 (retrieved 2026-09-24)
- Insurance Information Institute (III) — Background on: Compulsory auto/uninsured motorists (retrieved 2026-09-24)
- Insurance Information Institute (III) — Facts + Statistics: Uninsured motorists (retrieved 2026-09-24)
Rate examples are illustrative national figures gathered from public filings and industry surveys. They are not quotes. Your actual premium depends on your state, carrier, vehicle, driving record, and eligibility for discounts. Teen Driver is an insurance marketing and referral service, not an insurer or licensed agency. We connect families with licensed independent agents. Questions? Call (855) 706-3520.
Set UM/UIM limits that actually protect your teen
Uninsured and underinsured motorist coverage only helps if the limits are high enough. An independent agent can confirm your state’s rules and match your UM/UIM limits to your liability limits, so your teen is covered when the other driver cannot pay.