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What is Uninsured/Underinsured Motorist Insurance Coverage?

Updated: Feb 23

Many times, our clients usually lack a complete understanding regarding the benefits of choosing Uninsured/Underinsured (UIM) coverage as part of their auto insurance policy. However, you never want to be without this coverage, because once you have an accident, it is too late to change your coverages. We highly recommend taking a quick look at your auto insurance policy. Check to make sure you would be covered if an uninsured driver wrecks your vehicle.

What is Uninsured/Underinsured Coverage?

The words uninsured and underinsured are used interchangeably. In Alabama, both allow very helpful coverage to the policyholder and potentially even permanent residents in their household. For instance, if you chose Uninsured/Underinsured coverage through your insurance carrier, it would pay a part or the complete amount of any medical bills you have as a result of injuries stemming from the vehicle accident and treatment you obtained.

Here is the difference between Uninsured and Underinsured Coverage?

Uninsured motorist coverage applies if the at-fault driver lacks auto insurance coverage of their own. Underinsured motorist coverage applies to medical expenses in excess of the liability coverage allotted in the at-fault driver’s insurance if there is not enough coverage.

Read the Fine Print

When purchasing the type of uninsured or underinsured motorist insurance coverage, it is important to remember a small detail that helps tremendously. Be sure to look closely and choose the “excess” or “add on” stipulation. This choice is best as it allows your own auto insurance policy to become “stackable.” For example, if you choose a UIM policy in the amount of 50/100. This will allows access to an extra $50,000.00 to help pay your medical bills in addition to the defendant-driver’s liability coverage.

The Takeaway

Uninsured/Underinsured motorist coverage only applies in the following two scenarios:

  1. The defendant-driver does not have liability insurance coverage.

  2. The defendant-driver’s active policy coverage has been depleted.

Make sure to confirm that you and your loved ones are insured in a worse case situation. Contact your insurance provider to learn more about your coverage allowed under your policy.

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