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Understanding UIM And UM Car Insurance

In many states, you must purchase UM coverage. This acronym stands for Uninsured Motorist(UM). Closely related to this is the UIM coverage- Underinsured Motorist. There are major differences between these two terms and you must understand them. Find out more about these policies and get insurance quotes auto online for free, from our website.

Uninsured motorist coverage, often termed “UM coverage” is broken into two categories:

  • Uninsured motorist bodily injury coverage: pays the cost of your hospital bills if you are injured in an accident. If you are injured by an uninsured driver and don’t have UM coverage, you will have to use medical payments coverage, personal injury protection, or your own medical insurance. And keep in mind that medical bills are usually really expensive.
  • Uninsured motorist property damage coverage: pays for repairs to your car if it’s damaged in an accident. If your car is damaged by an uninsured driver and you don’t have UM coverage or collision coverage, you would have to pay for repairs yourself or sue the at-fault driver.

Underinsured motorist coverage protects you from other drivers who have insurance, but not enough to pay for your injuries or the car damage they cause. It also consists of two categories:

  • Underinsured motorist bodily injury coverage: helps pay for your hospital bills if you are hit by a driver who doesn’t carry enough liability insurance coverage to fully cover the cost of hospital bills.
  • Underinsured motorist property damage coverage: helps pay for repairs to your car if you are hit by a driver who doesn’t have enough insurance coverage to fully cover the repairs.

Some states require drivers to buy uninsured motorist coverage, and in others, it isn’t available. In states where it is available, uninsured motorist bodily injury protection and uninsured motorist property damage protection can be sold separately or bundled together. It also can be bundled with underinsured motorist coverage.

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