Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage pays when someone without insurance hits you and causes injury or property damage. Underinsured motorist coverage kicks in when the at-fault driver has insurance, but their liability limits are too low to cover your full losses. Both coverages protect you from paying out-of-pocket for someone else's mistake when their policy can't or won't make you whole. The coverage applies to medical expenses, lost wages, pain and suffering, and in some states, vehicle repair costs.
- You're rear-ended at a stoplight by a driver with no insurance. You have $18,000 in medical bills and $7,500 in vehicle damage. The at-fault driver has no policy to file against. Your uninsured motorist bodily injury coverage pays the $18,000 in medical costs up to your policy limit. If you carry uninsured motorist property damage coverage, it pays the $7,500 repair bill minus your deductible.
- A driver runs a red light and T-bones your car. You suffer $85,000 in medical expenses and lost wages. The at-fault driver carries Arkansas minimum liability of $25,000 per person. Their insurer pays the $25,000 limit. Your underinsured motorist coverage pays the remaining $60,000, assuming your policy limit is high enough to cover the gap.
- Your car is sideswiped on the highway and the other driver flees. You have $12,000 in injuries and $9,000 in vehicle damage. Because the at-fault driver is unknown and unidentified, your uninsured motorist coverage treats this as an uninsured claim. The coverage pays your medical bills and, if you carry property damage coverage, your repair costs after the deductible.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry this coverage if you drive frequently in areas with high uninsured driver rates, if you don't have health insurance that covers auto accident injuries, or if you carry liability-only and have no collision coverage to pay for your own vehicle damage. Drivers who commute daily or transport family members benefit most, because medical bills from serious accidents can exceed minimum liability limits quickly.
Compare the cost of this coverage to your out-of-pocket risk. If you have $50,000 in assets and no health insurance, uninsured motorist bodily injury coverage at $50,000 or $100,000 limits protects you from catastrophic loss for under $20 per month. If you carry collision coverage already, skip the property damage portion and save the extra premium. Stacking makes sense only if you own multiple vehicles and want combined limits available on a single claim.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8 to $18 per month to an Arkansas auto insurance premium, or approximately $96 to $216 annually.
- Coverage limits you select — higher bodily injury limits cost more but protect you from larger gaps in at-fault driver policies.
- Whether you add property damage coverage — many Arkansas drivers skip this and rely on collision coverage instead.
- Stacking elections — stacking uninsured motorist limits across multiple vehicles on one policy increases the total available coverage and raises the premium.
- Your county's uninsured driver rate — areas with higher percentages of uninsured motorists see slightly higher premiums for this coverage.
- Claim history on uninsured motorist coverage — prior claims under this coverage can increase future premiums with some carriers.