Uninsured/Underinsured Motorist Coverage.
In plain English
Uninsured/underinsured motorist coverage (often shortened to UM/UIM) is the part of an auto policy that steps in when the driver who caused your crash either carries no insurance or carries less than your costs. Uninsured motorist coverage handles hit-and-run drivers and drivers with no policy at all. Underinsured motorist coverage covers the gap when the other driver has a policy but its limit runs out before your bills are paid. Most of this coverage pays for bodily injury, and some states also offer a property-damage version for your car.
01Why it matters
A serious crash can leave you with tens of thousands in medical bills, and if the other driver is broke or uninsured, this coverage is often the only thing standing between you and paying it yourself.
02The math, step by step
Say another driver runs a red light and your medical bills come to $60,000, but that driver carries only a $25,000 bodily-injury limit. Your underinsured motorist coverage can pay the remaining $35,000 up to your own UIM limit. The minimum bodily-injury limits a driver can legally carry vary by state, so check your state DMV or insurance department.
03What this is NOT
It is not liability coverage. Liability pays other people when you cause a crash. UM/UIM protects you when someone else causes the crash and cannot cover your costs.
04Receipts
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Plain-English answers from our glossary. Receipts included. Never advice.
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