What is the type of coverage offered by UIM?

Underinsured Motorist Coverage (UIM) is designed to protect drivers when they are involved in an accident with another driver who has insufficient insurance coverage to fully compensate for the damages incurred. In the event of an accident where the at-fault driver’s liability limits are lower than what is required to cover the injury or damage costs, UIM comes into play to bridge that financial gap. This means that if your damages exceed the other party’s coverage limits, your UIM policy can provide additional compensation up to its own policy limits.

Understanding UIM is crucial because it emphasizes the importance of having adequate insurance, as merely having liability coverage may not be sufficient in some circumstances. Uninsured Motorist Coverage, while similar, specifically covers situations where the other driver lacks any insurance at all, highlighting the distinct nature of UIM in situations where the other driver carries minimal coverage. Personal Injury Protection focuses on covering medical expenses regardless of fault, and Comprehensive Coverage typically covers non-collision-related damages such as theft or natural disasters, further distinguishing these types from UIM.