Uninsured or underinsured motorist coverage (UM/UIM coverage) is a clause in some insurance policies that kicks in if the other driver’s insurance policy doesn’t cover them for the full amount of your settlement.
For example, your case might be worth $500,000, but if the other driver’s insurance policy only covers them up to $100,000, you might never get the other $400,000 from them. They will technically owe it to you, but if they don’t have it to pay, it’s hard to collect. If you have UIM coverage on your policy, however, your insurance company may pay some of the remaining compensation up to your policy limit. Not everyone has this kind of coverage on their policy, however, and it only comes into play if your insurance policy has it. If you aren’t sure, you can ask your insurance company or let us review your policy. Get in touch with us to get your free case review today.