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Wednesday, December 6, 2023

Underinsured Motorist Coverage (UIM): Definition, Benefits

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Underinsured Motorist Coverage, or UIM, is like a your friend in the world of car insurance. It’s there to protect you when you get into an accident, and the other driver’s insurance isn’t enough to pay for your bills and car repairs.

What Is Underinsured Motorist Coverage (UIM)?

Underinsured Motorist Coverage (UIM) is a another types of auto insurance that helps you to protect financial when you’re involved in a car accident with a driver who doesn’t have enough insurance coverage to pay for your medical bills and property damage. In simple terms, it’s like a safety net for you and your vehicle when the other driver’s insurance falls short.

How Underinsured Motorist Coverage Works

Imagine you’re driving along, minding your own business, and suddenly, another driver crashes into your car. It turns out that the at-fault driver has insurance, but their policy limits aren’t enough to cover your expenses. This time the UIM cover your extra costs.

When you have Underinsured Motorist Coverage, your insurance company steps in to bridge the gap between the at-fault driver’s coverage and the total cost of your damages. This means that you won’t have to bear the financial burden if the other driver’s insurance isn’t sufficient.

Benefits of Underinsured Motorist Coverage

  1. Financial Protection: UIM ensures that you’re not left with hefty bills due to someone else’s lack of insurance coverage.
  2. Peace of Mind: Knowing you have UIM can provide peace of mind when you’re on the road, knowing you’re protected from underinsured drivers.
  3. Prompt Resolution: UIM claims can be processed more quickly than lawsuits against underinsured drivers, helping you get back on the road faster.

Where Is Underinsured Motorist Coverage Required?

UIM requirements from state to state, so it’s crucial to check your local regulations and consult with your insurance provider to understand what’s mandatory in your area. In some states, UIM is a legal requirement, while in others its optional.

You have to get UIM coverage in certain states, like Connecticut, Kansas, Maine, Maryland, Minnesota, Nebraska, North Carolina, North Dakota, Oregon, South Dakota, and Vermont.

If you decide to buy car insurance in New Hampshire and Virginia, you’ll need it there too. In Rhode Island, if you want more protection than the minimum state required then you’ll also need UIM coverage.


Is UIM the same as uninsured motorist coverage (UM)?

No, both terms are different. In UIM covers you when the at-fault driver has insurance, but it’s not enough, On the other hand, UM covers you when the at-fault driver has no insurance at all.

How much UIM coverage do I need?

The amount of UIM coverage is depends on factors like your state’s requirements, your budget, and your assets. It’s a good idea to consult with your insurance agent to determine the right amount for you.

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Does UIM cover property damage too?

UIM covers bodily injury, but not property damage. For property damage, you may need to rely on collision coverage or other parts of your policy.

Will my premiums go up if I use UIM?

Generally, using your UIM coverage for a claim should not directly increase your premiums. However, it’s best way to check with your insurance provider to understand how it might impact your policy.

Can I use UIM for hit-and-run accidents?

Yes, in some cases, UIM can be used to cover hit-and-run accidents where the at-fault driver cannot be identified or does not have insurance.


Underinsured Motorist Coverage is a valuable addition to your car insurance policy because its offering financial protection and peace of mind in case you encounter a driver with insufficient insurance coverage.

Be sure to understand your state’s requirements and consult with your insurance provider to ensure you have the right level of coverage for your needs.

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