Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) and underinsured motorist coverage (UIM) protect you when another driver causes a crash but lacks adequate insurance. UM pays when the at-fault driver has no liability insurance at all. UIM pays when their liability limits are too low to cover your medical bills, lost wages, and vehicle damage. Both coverages step in only after the at-fault driver's insurance is exhausted or confirmed absent — they do not replace your own collision or medical payments coverage.
- You are rear-ended at a stoplight. The at-fault driver has no insurance. Your medical bills total $18,000 and your vehicle repair costs $9,000. Your UM coverage pays both amounts up to your policy limits. Without UM, you would file a lawsuit against the at-fault driver personally — a process that typically takes years and often recovers nothing if the driver has no assets.
- Another driver runs a red light and T-bones your car. They carry Nebraska's minimum liability limit of $25,000 per person. Your medical bills reach $60,000. Their liability insurance pays the $25,000 maximum. If you carry $100,000 in UIM coverage, your policy pays the remaining $35,000. Without UIM, you absorb the $35,000 shortfall or pursue the at-fault driver in court.
- A driver sideswiped your car on the highway and fled. You suffer a concussion and your vehicle sustains $7,500 in damage. Because the at-fault driver cannot be identified, your UM coverage treats this as an uninsured motorist claim and pays for both your injuries and vehicle damage up to your limits. Collision coverage would pay for the vehicle but not your medical costs.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
Carry UM/UIM if you drive regularly in Nebraska, especially in counties with high uninsured driver rates or on high-traffic routes where crash risk is elevated. This coverage is critical if you cannot afford to pay out-of-pocket for medical bills or vehicle repairs after a crash caused by someone else. Drivers who carry only Nebraska's minimum liability limits should prioritize UM/UIM over collision coverage — you are statistically more likely to be hit by an uninsured driver than to cause a crash yourself.
Compare the annual cost of UM/UIM to the amount you could pay out-of-pocket if hit by an uninsured driver. If one emergency room visit or vehicle repair would exceed your savings, carry UM/UIM at limits matching your liability coverage. In Nebraska, where one in seven drivers is uninsured, this coverage pays claims more often than collision coverage in many counties.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
UM/UIM coverage typically adds $8 to $18 per month to a Nebraska auto insurance policy, or approximately $96 to $216 annually.
- Your selected UM/UIM limits — higher limits cost more, but the incremental cost from $25,000 to $100,000 is often under $5 per month.
- Whether you stack coverage across multiple vehicles on the same policy — stacked UM multiplies your per-vehicle limit by the number of insured vehicles, increasing both protection and premium.
- Your county's uninsured driver rate — counties with higher uninsured motorist rates see slightly higher UM premiums due to increased claim frequency.
- Your liability limits — carriers typically require your UM/UIM limits to match or stay below your liability limits, so raising liability also raises UM cost.
- Claim history on your policy — a prior UM claim may increase your premium at renewal, though less severely than an at-fault collision claim.