UIM Coverage (Underinsured Motorist)

Underinsured Motorist Coverage is insurance provided by your company, to protect you from an uninsured, or underinsured motorist who injures you or a family member. State law requires that your insurance company offer you the coverage, but you may decline if you sign a written waiver. It is important to have UIM coverage.  Without  UIM  you may find yourself with absolutely no recourse if you are injured by an uninsured, or underinsured driver.

An uninsured driver has no insurance at all. An underinsured driver has insurance, but the liability limits are too low to compensate you for your injuries.

For example:

Mr. Smith runs a red light and injures Mr. Jones. Mr. Jones has $50,000 in medical bills, but Mr. Smith has only $25,000 in liability insurance. That means that Mr. Jones has to pay the other $25,000 in medical bills from his own pocket, unless he has UIM coverage. With UIM coverage, your own insurance company will, in theory, pay the difference between what your case is worth, and the liability insurance of the at-fault driver.

The example above is simple and does not take into account a number of factors which determine the value of the case, such as pain and suffering. It is intended only  to illustrate the importance of UIM coverage.

Many of my clients have thought they had "full coverage", only to learn after being injured by an uninsured driver, they had waived the UIM coverage when they originally purchased their insurance. Read your policy. Look at the declarations page, to see what coverage you have. If you can't find your policy, call your agent.