UM and UIM are both first party insurances which mean that you are the person that carries or is responsible for having it.
What is UM?
UM or uninsured motorist is a type of first party insurance coverage that is used as protection in relation to bodily injury claims. They are damages that are received as a result of an uninsured driver. Typically, when in a motor vehicle accident the and the other driver is found to be at fault, their liability insurance would then pay for the damages in the bodily injury claim up to the amount of policy limits. One such instance of this not happening is if the driver is uninsured.
What is an uninsured driver?
An uninsured driver is a person who does not have liability insurance. Liability insurance is required in almost every state. In some states UIM is a part of uninsured motorist coverage, while in others it is a completely separate type of coverage.
What exactly is UIM?
UIM or underinsured motorist is insurance coverage that protects you in an accident if the other party doesn’t have enough insurance coverage to pay for the damages underinsured motorist then acts as a supplement to cover damages. Underinsured insurance covers damages in a personal injury case for bodily injury claims for things such as lost wages due to the accident, medical bills, as well as pain and suffering. Underinsured motorist coverage can also come into the picture if the other party has insurance but the insurance has denied the claim, or is not financially able to pay it. Uninsured/underinsured can be filed depending upon the state in which you reside. A hit and run driver also counts for uninsured/underinsured insurance coverage, however in some states, it is only as it relates to the bodily injury claim. For property damage from the accident you could need additional insurance called UMPD or uninsured motorist property damage. This type of insurance coverage isn’t offered in every state, though.
If you don’t have uninsured motorist/underinsured motorist insurance and you are involved in a motor vehicle accident with an uninsured driver or one whose insurance does not meet the state minimum requirements for insurance, there is potential for little to no recovery. At that point you could be paying for everything out of your own pocket — yes, even if you were not the at-fault party.
If any of this pertains to you, contact a car accident lawyer, like a car accident lawyer in Arlington, TX, today.
Thanks to Brandy Austin Law Firm for their insight into what uninsured motorist coverage is.