What is Uninsured Motorist Coverage

Posted on May 2, 2025 writen by Jane Paulson in Car Accident

After a car accident in Portland, Oregon, discovering that the at-fault driver doesn’t have insurance can leave you with serious concerns about how to cover medical bills, lost wages, and other damages. In these situations, you may be asking: what is uninsured motorist coverage? Uninsured motorist coverage—also known as UM coverage—provides financial protection when the other driver fails to carry liability insurance or leaves the crash scene. 

At Paulson Coletti Trial Attorneys, our experienced Portland car accident lawyers work with individuals and families facing these exact challenges, helping them recover what they’re legally owed under Oregon law.

Understanding Uninsured Motorist Coverage

Oregon law requires all drivers to carry minimum liability insurance, but not everyone complies. In fact, according to the Oregon State Bar, your own UM coverage pays for things like medical bills, lost income, and other damages when the other driver is uninsured. This type of protection is built into every auto insurance policy in Oregon unless you’ve rejected it in writing.

UM coverage also includes underinsured motorist (UIM) coverage, which applies when the other driver has insurance but their policy limits are too low to cover all your losses. In both cases, this coverage is a lifeline during a stressful time.

Why You Need Uninsured Motorist Coverage

Not every driver on the road carries the coverage the law requires. Even those who do might have only the bare minimum, often insufficient after a serious car accident. This is especially relevant in Portland, where city traffic and unpredictable drivers increase the likelihood of collisions.

Uninsured motorist coverage acts as a safety net

If you’re in an accident caused by someone who lacks proper coverage—or worse, leaves the scene—you won’t be stuck with the financial burden. Without UM/UIM protection, you may have to pay out-of-pocket or pursue a complicated civil lawsuit against someone with no assets to recover.

How Uninsured Motorist Coverage Works

After a collision, your first step is typically to file a claim with the at-fault driver’s insurance. However, when the at-fault driver lacks sufficient insurance, your own uninsured or underinsured motorist (UM/UIM) coverage becomes the primary source of compensation.

This coverage will:

• Pay for medical treatment.
• Reimburse lost wages due to injury.
• Cover pain and suffering up to your policy limits.

According to Oregon Revised Statutes § 742.504, every motor vehicle liability policy issued in the state must include uninsured motorist coverage. This coverage is designed to mirror the terms of the liability section of the policy and is legally required unless properly waived or modified in accordance with state law. 

Key Benefits of Uninsured Motorist Coverage

• Financial Protection: You won’t be left paying for your own injuries if the other driver lacks insurance.
• Hit-and-Run Coverage: UM covers accidents where the other driver flees and is never identified.
• Peace of Mind: You know you’re protected, no matter who causes the accident.
• Covers More Than Just You: In Oregon, UM/UIM coverage extends to family members and passengers in your car.

When Does Uninsured Motorist Coverage Apply?

Uninsured motorist coverage applies in several specific scenarios:

• The at-fault driver has no insurance: Common in hit-and-run cases or with drivers who never purchased insurance.
• You are injured as a pedestrian or cyclist: If struck by an uninsured driver, your policy can still cover you.
• A hit-and-run driver causes the crash: UM coverage kicks in even when the driver isn’t found.

In each of these instances, your own policy becomes the primary source of compensation. This is particularly important for serious injuries, where treatment and recovery may take months or years.

Should You Add Uninsured Motorist Coverage to Your Policy

Yes, absolutely—unless you’ve already opted into it, which is likely if you haven’t signed a waiver. Oregon requires that every insurer include UM/UIM coverage unless you specifically decline it in writing.

Even if you already have coverage, consider increasing the limits. The state minimum might not be enough to cover long-term medical care or lost income following a major car accident. Talk with your insurance provider to understand your options.

Many Portland residents assume that because they have health insurance, they don’t need UM/UIM. But health insurance typically won’t cover non-economic damages like pain and suffering or full wage loss. Uninsured motorist coverage fills in those critical gaps.

Get Legal Help After a Car Accident Involving an Uninsured Driver

Understanding what is uninsured motorist coverage is essential when pursuing compensation after a car accident caused by a driver with no insurance or inadequate policy limits. 

At Paulson Coletti Trial Attorneys, we represent individuals throughout Portland and the broader Oregon area in uninsured and underinsured motorist claims. Contact us at 503-682-8716 to schedule a free consultation.