What is UIM and why do I need it?
I recently handled a case for a lovely young couple and their infant son. They were driving along when suddenly a vehicle raced through a stop sign without stopping and smashed into the side of my client's car. Luckily, no one was killed but the wife suffered fairly significant internal injuries requiring hospitalization. Upon investigation, we determined that the tortfeasor (the car that went through the stop sign) only had a minimum insurance policy of $15,000. Since her case was clearly worth more than $15,000, could we recover from any other source? Underinsured Motorist coverage (UIM) might be such a source.
What is UIM coverage? Coverage that you purchase to protect yourself if you are involved in an accident with a vehicle that has limited coverage. It is relatively inexpensive. It is usually sold in conjunction with Uninsured Motorist coverage (UM) which protects you if you are involved in an accident with a vehicle that either has no insurance, is stolen or is unidentified ( hit and run).
Unfortunately, my client only had UIM coverage of $25,000. Since her carrier is entitled to a credit for money received from the tortfeasor, we could only collect an additional $10,000 for her, not nearly enough to compensate her for her injuries.
The Bottom Line: purchase as much UIM coverage as you can afford.
