While most drivers are familiar with standard coverages like liability and collision, Uninsured/Underinsured Motorist (UM/UIM) coverage often gets overlooked. If you have no or low UM/UIM coverage, you may be left undercompensated if you are in an accident you did not cause.

Understanding Liability Coverage vs. UM/UIM Coverage

Liability coverage protects you when you are at fault in an accident. It covers the other party’s property damage and medical expenses up to the limits. For example, if you cause an accident and have liability coverage of $15K/$30K, your insurance will cover up to $15K in damages per person, and up to $30K in damages total.   

UM/UIM coverage is designed to protect you when you are not at fault. It applies when the at fault driver has lower-level coverage or cannot be located (such as in a hit and run). For instance, say you were hit by a driver with baseline liability coverage of $15K/$30K. Oftentimes, the $15K will not cover your damages and medical expenses.  With UM/UIM coverage, you can seek to recover from your own insurance to be made whole. In the scenario just described, having UM/UIM limits of $100K/$300K would allow you to recover an additional $85K (not an additional $100K because your insured gets a credit for the amount received from the at-fault driver, in this case a $15K credit.) Your UM/UIM coverage serves as an added layer of protection.  

Up Your UM/UIM Coverage

Since UM/UIM coverage is directly tied to your liability coverage, you’ll need to increase your liability limits first.  Work with your insurance provider to adjust these limits to a level that aligns with your financial capabilities and risk tolerance. Ask your insurance provider what an increase will mean to your monthly premiums. While upping your limits will cause you to pay more each month for auto insurance, the increase is often minimal (perhaps $10/$15 more each month), and well worth the value. It is prudent to carry liability coverage of at least $100K/$300K, and UM/UIM limits of $100/$300 as well.  

Carter Wolden Curtis, LLP is here to navigate the legal process for you, helping to ease some of the challenges and hardships you may face during this difficult time.

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