What is Underinsured Motorists (UIM) Coverage designed to provide?

Underinsured Motorists (UIM) Coverage is specifically designed to protect individuals when they are involved in an accident with a driver who has insurance, but that insurance is not enough to cover the damages resulting from the accident. This situation often arises when medical expenses, lost wages, or pain and suffering exceed the limits of the at-fault driver’s policy. By having UIM coverage, the insured can file a claim to recover the difference, ensuring that they are not left with significant out-of-pocket expenses when another driver's insurance cannot fully compensate their losses.

This coverage plays a critical role in enhancing financial security for drivers, as it addresses scenarios where a responsible party has some insurance but it falls short of covering all costs incurred from an accident. It highlights the importance of having adequate insurance protection in today's environment, where minimum coverage limits may not adequately cover more serious accidents.