Uninsured and underinsured motorist insurance, often called UM/UIM coverage, is insurance you carry on your own auto policy. It exists to protect you when the driver who causes the accident either has no insurance or does not have enough insurance.
Most people don't fully understand this coverage until they need it. Here's how it works.
What is uninsured motorist (UM) coverage?
Uninsured motorist insurance applies when you are injured in an accident caused by a driver who has no insurance at all. If the at-fault driver does not have insurance, there is no liability policy available to pay for medical bills, lost wages, or pain and suffering.
That's where uninsured motorist coverage steps in. Instead of filing a claim against the other driver's insurance, you file a claim against your own policy. Without uninsured motorist coverage, there may be no insurance money available to compensate you for your injuries.
What is underinsured motorist (UIM) coverage?
Underinsured motorist insurance applies when the driver who caused the accident does have insurance, but their policy limits are too low to fully cover your damages.
For example, if the at-fault driver has a $30,000 policy but your medical bills and damages total $60,000, the other driver's insurance can only pay up to $30,000. If you carry at least $30,000 in underinsured motorist coverage, that coverage can help make up the difference.
Are uninsured and underinsured motorist coverage separate?
In most cases, uninsured and underinsured motorist coverage come together as part of the same section of an auto insurance policy. They are not usually purchased separately. The amount of UM/UIM coverage you have depends on what you selected when you set up your policy.
Do I really need UM/UIM coverage?
Yes. This is one of the most important coverages you can carry. Many drivers either have no insurance, or carry only the minimum required by law. UM/UIM coverage is often the only protection you have in those situations.
The bottom line
Uninsured and underinsured motorist coverage protects you when the other driver cannot fully cover the damage they caused. Without it, your ability to recover compensation after an accident may be severely limited, even when you did nothing wrong.
If you've been in an accident and aren't sure whether UM/UIM coverage applies to your situation, reviewing the policy and understanding your options early can make a meaningful difference.