“UM / UIM”: What does Uninsured / Underinsured mean on my Auto Insurance Policy?
Accidents happen in an instant. You are driving along, and then suddenly you hear the screeching of tires or see another vehicle headed for yours. You are injured, your car is wrecked, and you are looking for someone to pay for your damages.
After the accident, one of the initial things that happens is the exchange of insurance information. You ask for the auto insurance carrier of that at-fault driver to make sure they have “liability” insurance. Liability insurance is the amount of coverage the at-fault driver has available to cover the damages to your auto or person. But what if the at-fault driver does not have insurance? What if they do have insurance, but it isn’t enough to pay for all the damages in your claim? This is where obtaining a knowledgeable Attorney to fight for the compensation you deserve, and the “Uninsured” (UM) / “Underinsured Motorist” (UIM) coverage on your own policy steps in.
What is Uninsured Motorist Coverage (UIM)?
Uninsured Motorist (UIM) coverage is exactly what it appears to be. It is the amount of insurance that you carry on your own policy to protect yourself against the many drivers on the road with no auto insurance. In fact, according to the Insurance-Research Council, 14% of drivers (about one in seven) were uninsured in 2023. On July 1, 2024, Virginia passed a law to reduce the number of uninsured motorist on the road, since this was such a big problem. Previously, drivers could drive on the road, uninsured, for a $500 fee. That is no longer an option today, and all drivers are required to carry liability insurance coverage.
If it is now required, why do you still need to carry UM coverage on your policy? Because your UM policy protects you against hit and run drivers, drivers that are still driving on the road uninsured, or drivers that provide lapsed policy information at the scene and were actually uninsured at the time of the accident.
What is Underinsured Motorist Coverage (UIM)?
After your accident, you may be relieved to find out that the at-fault driver does carry liability insurance. However, it may not be all good news. You may discover that driver only carries the minimum liability insurance without enough insurance to cover all the costs of your claim. That means that the rest of your bills will have to be paid by you, out of your own pocket. However, if you have Underinsured Motorist (UIM) coverage on your policy, UIM will help pay for your expenses. It is a great protection against that sizable percentage of the population that are driving on the road today without enough insurance to compensate you for your injuries.
Simply put, Underinsured Motorist coverage is an additional amount of insurance now available to provide compensation for your injuries through your own UIM policy, an amount higher than if you could only count the at-fault driver’s liability insurance alone.
Contact Goss & Fentress for a free consultation
If you are injured in a car accident, please call Goss & Fentress Law Offices for a free phone or in-person consultation. We will make sure you obtain all the insurance that is available to you, including all UM and UIM coverage. We will get you the compensation you deserve. Goss & Fentress has over 130 combined years of trial experience and has recovered millions of dollars from insurance companies.
The Attorneys at Goss & Fentress are licensed and handle personal injury cases in Virginia, North Carolina, Washington DC, and Maryland.
Our next few blog articles will feature stacking of the UM & UIM coverages and actual UIM cases that GOSS & FENTRESS settled as they were able to obtain substantial amounts of coverage despite the at-fault drivers having minimum coverage.
