What Is Uninsured and Underinsured Motorist Coverage?
Uninsured/underinsured motorist (UM/UIM) insurance may help cover car repairs and medical costs for you and your passenger if the driver at fault doesn’t have enough or any auto insurance. Sometimes, these policies are sold as a package or separately.
There are 28 million uninsured drivers in the U.S.
1 in 8 motorists doesn’t have auto insurance.
*Source: Insurance Research Council
Uninsured motorist coverage is used when the at-fault driver can’t pay due to a lack of insurance.
Underinsured motorist coverage is used when the driver’s liability limits are lower than the costs of the accident.
Excess uninsured/underinsured motorist coverage is used when an auto policy’s UM/UIM limits have been exhausted.
UM/UIM coverage may help pay for:
- Medical bills
- Lost wages if a person can’t work due to a car accident
- Pain and suffering compensation
- Funeral expenses
- Repairs to your vehicle
Types of accidents potentially covered by UM/UIM:
- A hit-and-run
- Someone rear-ending you
- Head-on collisions
- A driver backing into you
Tags: Auto Insurance