What Is An Underinsured Motorist?
An Underinsured Motorist is a driver whose liability insurance cannot fully cover the losses caused in a crash. The term also commonly describes underinsured motorist coverage, which may help an injured person recover eligible damages from their own auto insurer after the at-fault driver's available liability limits fall short.
Quick Facts About Underinsured Motorist
Category
Auto insurance coverage
Used for
Unpaid crash-related losses
Common confusion
Insurance exists, but coverage is insufficient
Also called
UIM coverage, UIM
Often discussed with
Uninsured Motorist Claims, Car Accident Claims
Key Takeaways About Underinsured Motorist
- The at-fault driver has insurance, but the limits may be insufficient.
- Your policy may provide another source of recovery.
- Underinsured does not mean uninsured.
How Underinsured Motorist Works
Underinsured Motorist coverage applies when another driver's available liability insurance does not cover the full value of an injured person's eligible losses. The injured person may seek payment under their own policy, subject to the policy's terms, limits, exclusions, and the insurer's review. The claim usually requires proof of fault, medical treatment, financial losses, and the amount already available from the at-fault driver's insurer.
Related glossary terms: Bodily Injury, Damages, Subrogation.
Underinsured motorist coverage does not automatically pay every claimed loss. The insurer may examine the crash facts, medical records, wage information, and other evidence. Policy language also determines whether coverage applies and how prior payments affect the claim. A settlement with the at-fault driver can affect the remaining claim, so the policy and proposed release should be reviewed before resolution.
From the Atlanta Auto Law team
When we review an underinsured motorist claim, we examine the policy, the at-fault driver's available coverage, and the evidence supporting the injured person's losses. We also track communications with each insurer and review proposed releases before our client resolves a related liability claim.
Underinsured Motorist in Practice: A Real-World Example
A driver causes a collision and carries liability insurance that does not cover the injured person's medical treatment, lost income, and other eligible losses. The person's underinsured motorist coverage may provide an additional path to recovery after the liability claim is addressed.
Related Services
Related Terms
Bodily Injury
Bodily Injury is physical harm to a person caused by an accident, wrongful act, or other…
Damages
Damages are the losses or harm that the law may recognize after another person’s wrongful conduct…
Subrogation
Subrogation is a legal process that allows an insurer or other paying party to seek repayment…
Settlement
Settlement is an agreement that resolves a personal injury claim without a trial. In a car…
Atlanta Auto Law
Have Questions About Underinsured Motorist?
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