What is Underinsured Insurance Coverage (UIM) and How Does It Work

Underinsured motors coverage is a very important coverage also known as UIM coverage. That coverage is available when a person that hits you has usually a lower minimum policy limits of twenty five or fifty thousand dollars and you have medical bills or injuries that vastly exceed that. This coverage is on your policy and it would step in and to the shoes of the driver and pay above and beyond that policy limits. So if another driver has twenty-five thousand dollars in policy and you have over fifty thousand in medicals, if you have under insured motors coverage, that coverage will step in and pay excess of what the policy holder has.

There’s also UIMPD. And so if you have a situation where you have a vehicle that is worth significantly more than the average, policy, which is usually twenty-five thousand, you wanna have that UIMPD coverage that make sure you’re protecting your vehicle or things that you’re carrying in your vehicle. If you’re towing a fridge or towing a tanning bed or something weird, that those are the situations where your property damage may not be covered by your own policy and so you want to make sure you have UIMPD to take care of, your property damage in excess of that twenty-five thousand dollars.