The Most Misunderstood Insurance Coverage – Uninsured/Underinsured Motorist Liability
Did you know that over 1 in 8 drivers on the road don’t have car insurance? And even if they do, they might not have enough to cover damages if they hit you.
That’s where Uninsured and Underinsured Motorist Coverage (UM/UIM) comes in—but many people either don’t have it or don’t understand how it works.
Today, we’re breaking it down in simple terms:
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What this coverage is
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Why you need it
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The biggest misconceptions that could cost you thousands
Stick around to make sure you’re not leaving yourself unprotected.
What is UM/UIM Coverage?
Let’s break down UM/UIM coverage so you can see how it works for you.
1. Uninsured Motorist (UM) Coverage
UM coverage protects you if another driver hits you and doesn’t have insurance.
Example:
Imagine you’re stopped at a red light and get rear-ended. The other driver? No insurance. Without UM coverage, you’re left to pay for your own medical bills and car repairs.
2. Underinsured Motorist (UIM) Coverage
Next, we have UIM coverage, which comes into play if the at-fault driver’s insurance isn’t enough to cover the damages.
Example:
Let’s say the other driver has $25,000 in coverage, but your hospital bill is $50,000. UIM helps cover the gap, ensuring you’re not left paying out-of-pocket for the difference.
Why Do You Need UM/UIM Coverage?
So, do you really need UM/UIM coverage? Here’s why I believe it’s essential:
1. Protects You from Uninsured Drivers
Some states have low insurance requirements, meaning even insured drivers may not have enough coverage. UM/UIM helps protect you in these situations.
2. Covers Medical Bills & Lost Wages
If you’re injured in an accident caused by an uninsured or underinsured driver, UM/UIM can help cover your medical bills and lost wages, so you don’t have to pay out of pocket.
3. Prevents Financial Hardship
Have you ever thought about suing an uninsured driver? It’s expensive and often a lost cause. UM/UIM helps prevent financial hardship after an accident.
4. Extends Protection to Passengers
Your family or friends in the car? They’re covered too! UM/UIM extends protection to all passengers in your vehicle.
5. Covers Hit-and-Runs
In many cases, UM coverage even extends to hit-and-run accidents, where the at-fault driver flees the scene. It’s crucial for ensuring you’re covered if you’re the victim of a hit-and-run.
What About Uninsured Motorist Property Damage (UMPD)?
We’ve mostly discussed bodily injury coverage so far, but what about your car? That’s where Uninsured Motorist Property Damage (UMPD) comes in.
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UMPD helps cover repairs if your car is hit by an uninsured driver.
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In some states, UMPD also covers hit-and-run damage.
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UMPD is an alternative to collision coverage, making it more affordable if you don’t have comprehensive and collision insurance.
4 Myths and the Biggest Misconceptions About UM/UIM
Let’s clear up the biggest misconceptions about UM/UIM coverage.
Myth 1: “I Have Health Insurance, So I Don’t Need UM/UIM”
Truth: Health insurance doesn’t cover car repairs or lost wages from a car accident. UM/UIM helps cover these costs, especially when the other driver doesn’t have enough coverage.
Myth 2: “Full Coverage Includes UM/UIM”
Truth: No, it doesn’t. “Full coverage” usually includes liability, collision, and comprehensive coverage, but UM/UIM is optional in most states. Be sure to check your policy.
Myth 3: “It’s Too Expensive”
Truth: UM/UIM coverage is affordable compared to the huge financial risk of being hit by an uninsured driver. The extra cost is usually minimal.
Myth 4: “The At-Fault Driver’s Insurance Will Cover Everything”
Truth: Many states have low minimum insurance requirements, which means the at-fault driver’s insurance may not cover your medical expenses or vehicle repairs fully.
How to Check if You Have UM/UIM Coverage
Curious if you have the right coverage on your insurance policy? Here’s how to check:
Steps to Check Your UM/UIM Coverage
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Log into your insurance account or check your declarations page.
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Look for UM/UIM Bodily Injury and Property Damage sections.
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Compare your UM/UIM limits with your liability limits—they should match!
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If you’re unsure, call my team here at Trailstone Insurance, and we’ll help you understand your coverage and make sure you’re protected.
Final Thoughts
Uninsured and Underinsured Motorist Coverage is an essential part of your auto insurance policy—and it’s often misunderstood. Don’t wait until an accident happens to realize you’re undercovered.
Key Takeaways:
✅ UM/UIM protects you and your passengers from uninsured or underinsured drivers.
✅ UMPD covers damage to your car, even if the other driver is uninsured.
✅ Don’t fall for myths—UM/UIM is affordable and important for protecting yourself financially.
At Trailstone Insurance, we’re here to help you understand and get the right coverage. We work with over 40 top carriers to find the best policy for your needs.
Contact us today for a free quote or policy review. Let’s make sure you’re fully protected on the road!
Thanks for watching, and drive safely out there!