So what in the heck is UM/UIM coverage?
The first thing to understand is that UM/UIM coverage is your coverage that kicks in when (a) somebody else is at fault, and (b) that person doesn’t have enough insurance coverage to pay for your losses.
“UM” means uninsured motorist coverage- that means the other person doesn’t have any insurance
“UIM” mean underinsured motorist coverage- that means the other person doesn’t have enough insurance coverage
Big Things to Remember
1. First big thing to remember when you have UM/UIM and you get into an accident is: notify, notify, notify- failing to notify your insurance company of the incident is the easiest way to screw this one up
2. Second big thing to remember is to not give the at-fault person a “general release”; instead give them a “limited release”. General here means letting them off for every reason there could be. Limited means allowing some additional recoveries- such as UM/UIM, for example.