Uninsured Motorist Coverage
If the negligent driver that hit you did not have insurance, you may still be entitled to compensation for Third Party Benefits (pain and suffering, excess wage loss, etc.) if there is special insurance coverage on your vehicle, a vehicle in your household or the vehicle that you were in. The special coverage is called Uninsured Motorist Coverage (UM Coverage).
UM Coverage also applies if you are involved in a hit-and-run accident.  If you can not identify the owner or driver of the other vehicle you may file a claim with your UM Carrier depending on the circumstances.
Uninsured Motorist Coverage is inexpensive (a policy for $50,000 worth of coverage can be purchased for as little as $20 per year). You should check your policy and make sure that it provides for Uninsured Motorist Coverage.  You should have at least $100,000.00 of uninsured motorist coverage.
 

Underinsured Motorist Coverage
Another important type of insurance coverage is called Underinsured Motorist Coverage. If a negligent driver/owner causes an accident and has a small insurance policy that does not compensate you for the full extent of your injuries, then you may obtain additional money from your own insurance company.
Example: If you shatter your leg and have surgery but you will limp for the rest of your life, your injury arguably could be worth $100,000.00 in pain and suffering damages.  If the negligent driver/owner only has a $20,000.00 bodily injury liability policy and you purchased $100,000.00 of Underinsured Motorist Coverage, you potentially may recover the $20,000.00 of the negligent driver/owners insurance company and up to an additional $80,000.00 from your insurance company, for a total recovery of $100,000.00.
Not all insurance companies offer Underinsured Motorist Coverage.  Do not assume that you have it, even if your declaration page lists coverage for “UM.”

How to Lower your Auto Insurance Rates:
Use an independent agent:  Many agents are “captive” agents which means they can only sell the insurance policies of the company that they work for.  You can use an Independent Agent to shop for the best price among several different companies. 
Exclude "high risk" drivers from your policy:  Your insurance rates can skyrocket if you have a teenage driver or a driver with a bad driving record on your policy.  One way to reduce your insurance rates is exclude that driver from your more valuable vehicles.  Then, provide that driver with a less valuable vehicle and make sure that it is the only vehicle that he or she uses.