UM/UIM: Important Acronyms in Auto Insurance!

UM/UIM: Important Acronyms in Auto Insurance!

What Happens When the Other Driver Has No Insurance, Or More Likely Low Insurance limits?

Most auto insurance policies have UM – Uninsured Motorist coverage. A lot of policies include UIM – Under Insured Motorist coverage as well. These two coverages on your auto policy can be vitally important if you suffer bodily injury or property damage in an accident where the other driver is deemed at fault. If the at fault driver has no insurance, or low liability limits for an accident, a serious accident will put your policy’s UM/UIM coverage limit in play.

Why is this an Issue?

Having no insurance is a serious problem in an accident. Low Insurance limits are a growing problem across the country because you have large-scale well-known insurance companies advertising “choose your premium”. Choosing a premium is not a responsible decision on proper auto coverage, but an exercise in selecting what you are willing to pay in premiums. This “choose your premium” mantra is creating an auto insurance world where far too many drivers are inadequately insured. As a result, insurance companies are indirectly promoting drivers to choose lower coverage.

What is the solution?

Check your policy to confirm you have UM/UIM coverage, and secondly confirm the limits to make sure they are adequate.

If you are the unfortunate driver who has an accident, with an uninsured or under insured driver; where the other driver is at fault, your UM/UIM coverage will be responsive to your injuries and damage.

If you have questions about UM/UIM coverage, drop Kyle an email at kshepard@shepardinsgrp.com or call 203.698.9342.