Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage has two parts: bodily injury and property damage. Bodily injury pays your medical expenses, lost wages, and pain and suffering when an uninsured or underinsured driver causes a crash. Property damage pays to repair or replace your vehicle when the at-fault driver has no insurance. Underinsured motorist coverage kicks in when the other driver's liability limits are too low to cover your full claim — you file against their policy first, then your underinsured coverage pays the difference up to your policy limit.
- You're stopped at a red light in Des Moines. The driver behind you doesn't brake in time and rear-ends your car at 35 mph. You have $18,000 in medical bills and $9,000 in vehicle damage. The other driver has no insurance. If you carry uninsured motorist bodily injury coverage with a $50,000 limit and uninsured motorist property damage with a $25,000 limit, your policy pays the full $27,000. Without it, you sue the driver personally — and most uninsured drivers have no assets to collect against.
- A driver runs a stop sign in Cedar Rapids and T-bones your car. You suffer a broken pelvis and miss three months of work. Your total claim is $85,000 in medical bills and lost income. The at-fault driver carries Iowa's minimum liability limit of $20,000 per person. Their insurer pays the $20,000 maximum. If you carry underinsured motorist coverage with a $100,000 limit, your policy pays the remaining $65,000. Without underinsured coverage, you absorb the $65,000 loss yourself.
- You're sideswiped on I-80 near Iowa City. The other driver flees the scene. You file a police report within two hours and provide the partial plate number you remember. Your uninsured motorist property damage coverage pays the $6,200 repair bill minus your deductible. Most carriers require the police report and proof you attempted to identify the other driver. If you don't file the report immediately, the claim is typically denied.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry uninsured and underinsured motorist coverage if you can't afford to pay your own medical bills and vehicle repairs after a crash caused by someone else. Iowa has no requirement to carry it, but 12.5 percent of Iowa drivers are uninsured — higher in rural counties — and many insured drivers carry only the state minimum $20,000 per person limit, which won't cover a serious injury. If you finance or lease your vehicle, your lender may require uninsured motorist property damage coverage to protect their collateral.
Compare the annual premium to your out-of-pocket risk. Multiply Iowa's 12.5 percent uninsured rate by your estimated crash risk, then estimate your potential loss if hit by an uninsured driver with a serious injury or totaled vehicle. If the premium is less than 10 percent of that potential loss, the coverage is typically worth carrying. Most Iowa drivers choose uninsured motorist limits matching their liability limits to avoid gaps — if you carry $50,000 per person in liability, carry $50,000 per person in uninsured motorist.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Uninsured and underinsured motorist coverage typically adds $8 to $18 per month to an Iowa auto insurance policy, or approximately $96 to $216 per year.
- Your selected coverage limits — higher limits cost more, but Iowa drivers often choose limits matching their liability coverage to avoid gaps.
- Whether you add stacked coverage, which combines limits across multiple vehicles on the same policy and typically increases premiums by 15 to 30 percent.
- Your county's uninsured driver rate — Polk and Linn counties have lower uninsured rates than rural counties, which can reduce premiums slightly.
- Your claims history — prior uninsured motorist claims can increase your rate even though you weren't at fault, because carriers view you as higher risk for future claims.
- Whether you bundle bodily injury and property damage coverage or select only one — most Iowa carriers discount bundled coverage by 5 to 10 percent.