In most locations, at least one out of every 10 drivers has no liability insurance. In other areas, as many as half of the drivers may be uninsured. That is why most states require drivers to have uninsured motorist protection.

        If an uninsured driver is at fault in an accident, uninsured motorist protection covers what the other driver's insurance company would have covered, if that person had carried insurance. It covers both you and your passengers and it pays for medical expenses, lost wages, pain and suffering, and other injury-related losses, but only up to the limits listed on YOUR policy.

        Another type of uninsured motorist protection, available in some states, pays for damages to your vehicle. If you already have collision and comprehensive insurance though, this is a duplicate coverage. Check the policy you have before adding anything else. You should also check your health and disability insurance policies as these could lower the amount on uninsured motorist protection you would need. Also, if you carry a lot of no-fault insurance, you would need less of the uninsured coverage since that pays no matter who's at fault.

        Uninsured motorists protection does, however, offer one major benefit that medical, disability, and no-fault does not. Uninsured coverage will be able to compensate you for your pain and suffering. This is a subjective amount that pays you for non-monetary damages that you may suffer. Again, you have to determine how much of this coverage is appropriate for your policy.

        In most states, when you buy the uninsured portion of the policy, you can also buy underinsured motorist protection to cover bodily injury (in some states, it's automatically included). This coverage pays when you are injured as a result of the negligence of someone whose liability insurance limits are not high enough. The definition of an underinsured motorist varies from state to state and in most cases, property damage is not included.