On most Auto Insurance Declarations pages, there will be two mysterious lines marked “UM” and “UIM”, with some numbers listed beside them. If you’re lucky, the words will even be spelled out: “Uninsured Motorist Coverage” and “Underinsured Motorist Coverage”. But what do those words actually mean, and how do they affect your coverage if you’re in an accident?
Uninsured Motorist Coverage
According to the Insurance Information Institute, in 2019, 16.4% of drivers in Missouri did not have even the most basic Auto Liability insurance. Potentially, almost 1 out of every 8 vehicles that you see on the road every day may not have any insurance. If an uninsured driver causes an accident that results in bodily harm to your or your passengers, your only recourse would be to sue the driver for damages (a lengthy and potentially fruitless process). Additionally, if an accident is caused by a hit-and-run driver, there’s no guarantee the driver will ever be found, and the question of whether or not they have insurance will be null. Uninsured Motorist coverage is offered on your Auto Insurance policy at state minimum limits and is also available at higher limits. This coverage will pay for an insured’s bodily injuries when an uninsured or hit-and-run driver causes an accident.
Underinsured Motorist Coverage
In Missouri, the state minimum liability limit is $25,000 per person/$50,000 per accident. What if a driver with state minimum coverage hits you and causes more than $25,000 in bodily injury to person(s) in your vehicle? That’s when Underinsured Motorist limits, available in increments up to your Coverage A Bodily Injury limits, come into play. After the limits of the at-fault driver’s insurance are used up, your UIM coverage activates to cover more of your bodily injury loss.
Aren’t I Just Paying for Drivers Who Aren’t Insured?
Sometimes it feels like UM and UIM coverages were created by insurance companies to charge the insured for insuring other drivers – but that’s not the case. These coverages protect you from uninsured, underinsured, and hit-and-run drivers, offering bodily injury coverage limits when you need them for any accident that isn’t your fault. UM and UIM can even come into play when you’re miles from your vehicle. An insured who is struck as a pedestrian by an uninsured, underinsured, or hit-and-run driver can have coverage for their injuries under their UM and UIM limits, as well.
UM and UIM charges are a very small percentage of your Auto Insurance premium, so they pack a lot of potential benefit into a small charge. We recommend matching your UM and UIM limits to the ones you have for Coverage A, Bodily Injury. And if you currently carry state minimum limits, you may want to increase them all.
Insure with the People You Trust
The agents at Kasmann Insurance take great pride and pleasure in helping clients understand the intricacies of insurance language and coverages. We firmly believe that the best customer is an educated customer, and that there are no silly or stupid insurance questions. The next time you’re stumped on insurance language on your Declarations pages, or have a what-if insurance question that keeps you up at night – give us a call at 573-442-1105, or email your favorite agent. Chances are we’ve got a plainly-worded, simple explanation. If not, we’re always up for a challenge and can call our Underwriters; we’ll learn something new together!