Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage pays when a driver with no insurance hits you and causes injury or property damage. Underinsured motorist coverage activates when the at-fault driver has liability insurance, but their limits are too low to cover your medical bills, lost wages, or vehicle repair costs. Both coverages are filed as claims with your own insurance carrier, not the other driver's, and your carrier pursues reimbursement from the at-fault party afterward.
- A driver runs a red light and totals your car. You have $8,000 in vehicle damage and $4,500 in medical bills. The other driver has no insurance. Your uninsured motorist property damage coverage pays the $8,000 vehicle repair after your deductible, and your uninsured motorist bodily injury coverage pays the $4,500 in medical costs. Without this coverage, you pay both out-of-pocket or sue the uninsured driver directly.
- You are rear-ended by a driver with minimum liability limits. You have $22,000 in medical expenses and $6,000 in lost income. The at-fault driver's liability policy pays its maximum of $25,000 for bodily injury per person, leaving you $3,000 short. Your underinsured motorist coverage pays the remaining $3,000. If you do not carry underinsured coverage, the $3,000 is your responsibility.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
Carry this coverage if you drive frequently in areas where uninsured driver rates are high, if you cannot afford to pay medical bills or vehicle repairs out-of-pocket after an accident, or if you have passengers regularly in your vehicle. It is also recommended if you have selected liability-only coverage and do not carry collision or comprehensive, since uninsured motorist property damage becomes your only protection for vehicle repair costs caused by another driver.
Compare the annual cost of uninsured and underinsured motorist coverage to the amount you could afford to pay out-of-pocket if hit by a driver with no insurance or low limits. If the coverage costs $150 per year and you cannot comfortably cover a $10,000 loss, the coverage is justified. If you have accessible savings and low medical exposure, declining it is defensible.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8 to $18 per month to your North Dakota premium, or approximately $96 to $216 annually.
- Coverage limits you select — higher limits for bodily injury and property damage increase the monthly cost.
- Whether you choose stacked or non-stacked coverage — stacking multiplies your limits by the number of vehicles on your policy and raises the premium.
- Your county's uninsured driver rate — areas with higher percentages of uninsured motorists see higher premiums for this coverage.
- Deductible for uninsured motorist property damage — a higher deductible lowers your monthly cost.
- Carrier pricing models — some insurers bundle uninsured and underinsured coverage at a flat rate, others price them separately.