One type of insurance rider that people either reject or misunderstand is uninsured/underinsured motorist coverage. Yet, this coverage may be vital to many as it can help drivers protect their right to compensation even if the other driver has no insurance or not enough coverage. Below, our friends at Herschensohn Law Firm, PLLC discuss what you should know.

UIM

Underinsured motorist or uninsured motorist (UIM/UM) coverage is a policy rider that helps make sure you get paid for both physical injuries and property damage. This is a required policy in 18 states and the District of Columbia. UIM has many benefits:

  • Payment for medical expenses
  • Payment for lost wages
  • Payment for property damage
  • Payment to cover the insurance gap if necessary to finish repairing your vehicle for previously mentioned benefits

UM Coverage

UM stands for uninsured motorist coverage. For example, if you are in a vehicle accident and the other driver doesn’t have insurance, this part of the rider would help pay for your medical, property damages, and lost pay.

Why Is UIM/UM Important?

UIM/UM coverage is important. Let’s take the underinsured motorist portion as an example. Some pickup trucks now carry a price tag of $40,000 and up. If you are in a wreck in such a vehicle, there may be a gap in the insurance coverage itself, especially if someone is carrying only the state required minimum. If the other vehicle or your vehicle is damaged past the point of your insurance coverage, UIM may then cover the rest up to the UIM policy limits. If you have questions about UIM/UM talk with your insurance agent. They can answer your questions and even assist you in choosing the amount of coverage you truly need.

What About No Fault Coverage?

Is UIM/IM the same as no fault medical payment coverage? No. Some states require drivers to carry a specific rider referred to as no fault coverage. In other states, such as Washington State, a no-fault medical payment rider is optional (“PIP”), but insurance companies must make the coverage available and must obtain a waiver to prove that the coverage has been refused. Here’s how no fault and UIM differ:

  • UIM/UM doesn’t eliminate liability for any party. If someone ran into your vehicle, they may still be liable
  • UIM/UM only kicks in if the other driver is at fault
  • With no fault medical coverage “fault” need not be established to access the coverage.

Insurance Questions

If you’re unsure about the specifics of your current insurance policy or whether you have adequate UIM/UM coverage, it’s essential to seek professional advice. Consulting with a knowledgeable personal injury attorney can help you understand your options and ensure that your coverage aligns with your needs. An attorney can also guide you through the process of making a claim, should the need arise, and advocate on your behalf to secure the compensation you deserve.