What is Underinsured Motorist Coverage?
Updated January 24, 2026
Insurance coverage that protects you when the at-fault driver's liability insurance is insufficient to cover the full extent of your damages.
Understanding Underinsured Motorist Coverage
Underinsured motorist (UIM) coverage kicks in when the at-fault driver has insurance but their policy limits are too low to cover your injuries. For example, if your damages total $200,000 but the at-fault driver only has $50,000 in coverage, your UIM coverage can make up the difference up to your policy limits. UIM coverage is optional in some states and mandatory in others.
Examples
- 1At-fault driver has $25,000 policy but your injuries total $100,000
- 2Accessing your own UIM coverage after exhausting the other driver's limits
- 3Filing a UIM claim when the at-fault driver's coverage is minimal
Related Terms
Uninsured Motorist Coverage
Insurance coverage that protects you if you're injured by a driver who has no liability insurance or insufficient coverage to pay for your damages.
Stacking
The practice of combining coverage limits from multiple insurance policies to increase the total amount of coverage available for a single claim.
Policy Limits
The maximum amount an insurance company will pay for a covered claim under an insurance policy.
Bodily Injury Liability
Auto insurance coverage that pays for injuries you cause to others in an accident, including medical expenses, lost wages, and pain and suffering.
No-Fault Insurance
An auto insurance system where each driver's own insurance pays for their medical expenses and lost wages regardless of who caused the accident.
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