Underinsured Motorist Coverage — Insurance Claims Definition
Auto
Coverage that applies when the at-fault driver's liability limits are too low to cover your damages.
UIM stacks or offsets differently by state: some allow recovery of the difference between your damages and the tortfeasor's limits; others reduce UIM by amounts paid by the other party. Coordination with health insurance and PIP matters.
Examples
Your medical bills are $200,000; the at-fault driver carries only $50,000 liability; UIM may pay the remaining eligible amount up to your UIM limit after offset rules.
Common Mistakes
Thinking UIM duplicates UM entirely — different trigger. Failing to exhaust tortfeasor policy before UIM where required.
