What Is Underinsured Motorist Coverage?
Underinsured Motorist Coverage is insurance protection that may help pay covered injury losses when a responsible driver’s liability insurance cannot cover the full value of those losses. The injured person’s policy, coverage limits, exclusions, and claim facts control whether benefits apply and how much compensation may remain available.
Quick Facts About Underinsured Motorist Coverage
Category
Auto insurance coverage
Used for
Injury losses exceeding the liable driver’s coverage
Common confusion
It is not the same as uninsured motorist coverage
Also called
UIM Coverage, Underinsured Motorist Insurance
Often discussed with
Uninsured Motorist Claims
Key Takeaways About Underinsured Motorist Coverage
- It applies after another driver’s available liability coverage proves insufficient.
- Policy language controls eligibility, limits, and covered losses.
- Underinsured coverage differs from uninsured coverage because the other driver has insurance.
How Underinsured Motorist Coverage Works
Underinsured Motorist Coverage applies when another driver caused a crash but that driver’s liability policy does not cover the injured person’s covered losses. The available recovery depends on the policy language, the injury evidence, and the amount of liability insurance available. The claim may involve the injured person’s own insurer after the other driver’s coverage is considered.
Related glossary terms: Bodily Injury Liability, Medical Records, Damages.
Liability insurance pays according to the responsible driver’s policy. Underinsured coverage addresses the remaining covered loss subject to its own terms and limits. The insurer may review medical records, wage-loss evidence, crash facts, and settlement information. A policy may also contain notice provisions, consent requirements, exclusions, or rules affecting how coverage applies.
From the Atlanta Auto Law team
When we review an underinsured motorist claim, we examine every applicable policy and compare its terms with the crash facts. We also organize medical records, liability information, and documented losses before addressing the insurer’s position. That review helps identify coverage issues that may not appear in the other driver’s policy.
Underinsured Motorist Coverage in Practice: A Real-World Example
A driver causes a collision and carries liability insurance, but the available policy does not cover the injured person’s medical treatment and other documented losses. The injured person’s underinsured motorist policy may provide additional coverage, subject to its terms and limits.
Related Services
Related Terms
Bodily Injury Liability
Bodily Injury Liability is insurance protection that pays for injuries or death caused by the insured…
Medical Records
Medical Records are written or electronic documents that describe a patient’s care, condition, testing, treatment, and…
Damages
Damages are the losses or compensation connected to an injury or legal wrong. In a car…
Settlement Demand
Settlement Demand is a written request for an insurance payment that explains why the other party…
Atlanta Auto Law
Have Questions About Underinsured Motorist Coverage?
Contact Atlanta Auto Law for practical guidance on Underinsured Motorist Coverage and related personal injury attorney work in East Point.