Underinsured Motorist Coverage
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 Misconceptions
Thinking UIM duplicates UM entirely — different trigger. Failing to exhaust tortfeasor policy before UIM where required.
Related Terms
Browse the Insurance Claims Glossary
Looking for more insurance and claims terminology? Browse the complete A-Z glossary or explore the Claims Pages Academy for licensing guides, coverage explainers, and more.
Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
