What is UIM Auto Coverage? Are you adequately protected?

By otmseo on February 20, 2020

Many clients I meet with are unfamiliar with the acronym, UIM. Generally speaking, UIM (Uninsured/Underinsured Motorist) Coverage is a form of automobile insurance coverage that protects you if you are injured by an uninsured or underinsured driver. Connecticut law requires all CT drivers to maintain UIM coverage on their vehicle with minimum limits being $25,000.00 per person/$50,000.00 per accident.  

When does UIM apply? The most common use of UIM coverage is when you are injured in a car accident caused by another driver and that other driver does not have ANY auto insurance. Once a determination is made the other driver has no auto insurance, your UIM insurance carrier will handle and pay out your bodily injury claim. Another example of when UIM coverage applies is when the other driver has insufficient bodily injury auto insurance to compensate you fully for the injuries you sustained in the motor vehicle accident. Consider the following illustration:

Operator X causes a head-on collision with the vehicle being operated by Operator Y, severely injuring Operator Y. Operator X has an auto insurance policy with Green Lizard Insurance company with bodily injury limits of $25,000 per person and $50,000 per accident. As a result of the accident, Operator Y requires extensive treatment to her back and neck and has incurred medical bills totaling over $100,000.00. In addition, Operator Y has missed many months of work and is permanent disabled from the accident. Luckily, Operator Y is responsible and has secured a UIM policy with her auto insurance company, AllCountry Insurance with UIM limits of $500,000 per person and $1,000,000 per accident. The $25,000 of coverage on Operator X’s insurance policy won’t even put a dent in Operator Y’s medical bills. Therefore, Operator Y will first settle with Green Lizard Insurance company for the policy limit of $25,000. Next, she will turn to her UIM policy with AllCountry insurance. AllCountry insurance will be required to pay Operator Y the full value of her claim MINUS the $25,000 she received from Green Lizard Insurance Company. So, if Operator Y and AllCountry Insurance agree that her case is worth $300,000.00, AllCountry Insurance will pay her $275,000.00 ($300,000 – $25,000) to settle her case. 

If you are injured in a motor vehicle accident by a driver who has no insurance, there is still recourse for you under you UIM policy. However, it will require the skill of an experienced lawyer to navigate the intricacies of the insurance world. Call Serrantino Law now to set up your free consultation. 

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