What does uninsured and underinsured motorist coverage do, and should I carry it?

Uninsured motorist coverage pays for your injuries, and sometimes your car, when an at-fault driver has no insurance. Underinsured motorist coverage kicks in when the at-fault driver's limits are too low to cover your losses. Given how many drivers carry only minimum liability or none at all, this coverage protects you from paying for someone else's mistake out of your own pocket.

It's usually inexpensive relative to the protection. A serious injury can generate hospital bills and lost wages far beyond a minimum-limits policy. Set your uninsured/underinsured limits to match your own liability limits, and if you carry an umbrella policy, ask whether it can extend uninsured-motorist protection, since not all umbrellas do automatically.