The difference between underinsured motorists (UIM) and uninsured motorists (UM) coverage is that UIM applies when the at-fault driver:
Explanation
Underinsured motorists coverage applies when the at-fault driver does carry liability insurance, but the limits are insufficient to fully pay the injured insured's damages; UIM makes up part of the shortfall. Uninsured motorists coverage applies when the at-fault driver has no liability insurance or cannot be identified (such as a hit-and-run). Both protect the innocent insured from another driver's inadequate coverage.
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Related questions on this topic
- Other-than-collision coverage (comprehensive) under the Personal Auto Policy would pay for loss caused by:
- Uninsured Motorists (UM) coverage under Part C is designed to protect the insured when:
- An auto liability limit shown as split limits of 100/300/50 means the policy will pay up to:
- Which person would NOT meet the personal auto policy definition of a family member?
- The insured's listed car is in a body shop for a week, so he drives a spare car titled to his resident son. Under the personal auto policy that spare car is:
- Which of these is NOT one of the categories that make up 'your covered auto' under a personal auto policy?
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