# Underinsured Motorist Coverage

_Glossary_

Canonical: https://www.claimspages.com/learn/glossary/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.



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.