What Is Underinsured Motorist Coverage?
Underinsured Motorist Coverage is insurance on your auto policy that may help pay covered injury losses when the at-fault driver’s liability insurance cannot cover the full value of your claim. The coverage applies subject to its policy language, limits, exclusions, and the facts of the crash.
Quick Facts About Underinsured Motorist Coverage
Category
Auto insurance coverage
Used for
Injury claims involving insufficient liability insurance
Common confusion
It is not the at-fault driver’s coverage
Also called
UIM Coverage, Underinsured motorist insurance
Often discussed with
Uninsured Motorist Claim Representation
Key Takeaways About Underinsured Motorist Coverage
- It comes from your own auto policy.
- Policy terms control whether benefits apply.
- It is not the same as health insurance.
How Underinsured Motorist Coverage Works
Underinsured Motorist Coverage works through your own auto insurance policy after another driver causes a crash and lacks enough liability insurance to address covered losses. The available benefit depends on the policy language and the relationship between your losses, the other driver’s coverage, and your policy limits. The insurer may review fault, medical records, treatment, and other claim evidence.
Related glossary terms: Bodily Injury Liability, Damages, Release.
A claim can involve questions about who caused the collision and whether the policy covers the person making the claim. The insurer may also examine releases, settlement discussions, and related claims before deciding what benefits apply. Liability insurance pays for the at-fault driver’s legal responsibility, while underinsured motorist coverage comes from your policy and addresses a potential shortfall. Policy limits do not automatically establish the value of an injury claim.
From the Atlanta Auto Law team
When we handle an underinsured motorist claim, we review the applicable policy, coverage elections, and claim communications. We also connect the crash evidence, medical records, and injury losses to the available insurance. Our team checks whether a proposed release could affect related coverage.
Underinsured Motorist Coverage in Practice: A Real-World Example
A driver causes a collision, but the driver’s liability policy does not cover the injured person’s full losses. The injured person’s own policy may provide Underinsured Motorist Coverage, subject to its terms and the facts supporting the claim.
Related Services
Related Terms
Bodily Injury Liability
Bodily Injury Liability is a form of auto insurance coverage that pays for injury claims made…
Damages
Damages are the monetary compensation sought or awarded in a personal injury claim for losses caused…
Release
A release is a legal document in which a person gives up specified claims against another…
Subrogation
Subrogation is a legal process that allows an insurer or other payor to seek repayment from…
Atlanta Auto Law
Have Questions About Underinsured Motorist Coverage?
Contact Atlanta Auto Law for practical guidance on Underinsured Motorist Coverage and related personal injury attorney work in Georgia.