Fine Print: Uninsured / Underinsured Motorists Coverage

For decades, both brokers and insurers have fought to educate clients about the need for adequate insurance protection. One of the most commonly misunderstood coverages is Uninsured/Underinsured Motorists Coverage,( UM/UIM). Simply put, it is your way of protecting yourself from inadequately insured drivers.

Insurance agents and companies are required by law to offer uninsured motorist coverage when you buy auto insurance. Uninsured motorist coverage pays for bodily injuries (including pain and suffering, medical expenses, lost wages, loss of future wages, and so on) caused by an uninsured motorist or a hit and run driver who is legally responsible for the accident. In most states, it also applies to injuries caused by a motorist whose insurance company is insolvent.

This coverage applies to you, family members and guests in the car. It also provides protection when you are in someone else's car or if you are hit while walking. Your insurance company will pay for damages to injured persons up to the minimum limits prescribed by the financial responsibility laws of your state. Higher limits may be available.

You may also consider buying underinsured motorist coverage which pays you for damages caused by a motorist who does not have enough liability insurance to fully cover your damages. Underinsured Motorist Coverage, is designed to cover the gap between the other person's liability limits and the liability limit for Underinsured Motorist Bodily Injury Coverage that you select.

It is recommended that you buy the same limits for these coverages as you do for Bodily Injury to Others for two basic reasons. First, to maximize the UM and UIM that you can purchase: it's relatively inexpensive, so get what you can. The other reason is consistency in providing for yourself what you are providing for the public, regardless for who is "at-fault" in an accident.

While you may have adequate medical insurance to cover your medical expenses, medical insurance does not provide you with a remedy for lost wages, loss of future wages or pain and suffering. UM/UIM does.