What Is Underinsured Motorist Coverage?
Underinsured Motorist Coverage is insurance that may help pay covered injury losses when an at-fault driver has liability limits too low to cover the injured person's damages. The injured person generally seeks payment through their own policy, subject to policy terms, coverage limits, exclusions, and the facts of the accident.
Quick Facts About Underinsured Motorist Coverage
Category
Auto insurance coverage
Used for
Covered losses exceeding another driver's liability coverage
Common confusion
UIM coverage is not the at-fault driver's insurance
Also called
UIM Coverage, Underinsured Motorist Insurance
Often discussed with
Uninsured Motorist Claims
Key Takeaways About Underinsured Motorist Coverage
- UIM coverage comes from your own auto policy.
- Available payment depends on policy language and documented losses.
- UIM coverage is not the same as uninsured motorist coverage.
How Underinsured Motorist Coverage Works
Underinsured Motorist Coverage applies when another driver caused an accident and that driver's liability insurance does not fully address covered injury losses. The injured person's policy may provide another source of payment, subject to its terms, limits, exclusions, and proof supporting the claim.
Related glossary terms: Bodily Injury, Damages, Subrogation.
The claim usually requires identifying the available liability coverage, documenting the injuries and losses, and reviewing the injured person's policy. Liability Coverage from the at-fault driver and Underinsured Motorist Coverage serve different roles. The first responds to the driver's legal responsibility, while the second may respond through the injured person's own policy after the available liability coverage is considered.
From the Atlanta Auto Law team
When we handle an underinsured motorist claim, we review the applicable policy, the at-fault driver's coverage information, and the evidence supporting the injury losses. We also examine notice provisions, consent requirements, exclusions, and coverage disputes before assessing the available claim strategy.
Underinsured Motorist Coverage in Practice: A Real-World Example
A driver causes a crash, but the driver's liability policy does not cover all documented injury losses. The injured person's underinsured motorist coverage may provide additional payment if the policy applies and the claim satisfies its terms.
Related Services
Related Terms
Bodily Injury
Bodily injury is physical harm to a person that may support a claim for losses after…
Damages
Damages are the money a claimant seeks or a court awards to address losses caused by…
Subrogation
Subrogation is the process that allows an insurer or another party that paid for a loss…
Atlanta Auto Law
Have Questions About Underinsured Motorist Coverage?
Contact Atlanta Auto Law for practical guidance on Underinsured Motorist Coverage and related personal injury attorney work in Atlanta.