Uninsured and Underinsured Motorist (UM & UIM)
Underinsured Motorist (UIM) Coverage
A coverage in an automobile insurance policy under which the insurance company will page damages to the insured for which another motorist is liable if the motorist causing an accident has lower bodily injury liability limits that your UIM limits. The maximum dollar paid is then the difference between the two limits.
Uninsured Motorist (UM) Coverage
A coverage in an automobile insurance policy under which the insurance company will page damages to the insured for which another motorist is liable if that motorist is unable to pay because he or she is uninsured. This coverage applies to bodily injury damages only. Injuries to the insured caused by a hit-and-run driver are also covered.
