Most people shopping for auto insurance focus on the obvious coverages. They worry about collision coverage, comprehensive coverage, deductibles, roadside assistance, and rental car benefits. Yet one of the most valuable protections available is often overlooked, minimized, or purchased at limits that are far too low.

That coverage is Uninsured Motorist (UM) and Underinsured Motorist (UIM) protection.

Ironically, the coverage many consumers know the least about may be the coverage that does the most to protect their financial future after a serious collision.

The Coverage You Hope You Never Need

UM and UIM coverage exists for a simple reason: not every driver who causes a crash carries enough insurance to compensate the people they injure.

An uninsured driver may have no liability insurance at all.

An underinsured driver may have insurance, but not enough to cover the damages caused by a serious collision.

In either situation, UM/UIM coverage allows an injured person to look to his or her own policy for compensation rather than being limited to whatever inadequate coverage the at-fault driver purchased.

For many consumers, this coverage is the difference between being fully compensated and being left with substantial uncompensated losses.

A Serious Injury Can Quickly Exceed Minimum Insurance Limits

Even with increased minimum insurance requirements, a severe collision can generate damages that far exceed the coverage carried by many drivers.

Medical expenses can include:

• Emergency transportation
• Hospital stays
• Surgery
• Physical therapy
• Diagnostic testing
• Future medical care

In addition, injured victims may suffer:

• Lost income
• Reduced earning capacity
• Permanent impairment
• Chronic pain
• Emotional distress

It does not take a catastrophic crash for damages to exceed available liability limits.

When that happens, the injured person's own UIM coverage may become the single most important asset available in the claim.

Why UM/UIM Coverage Is Often a Remarkable Value

Consumers are frequently surprised to learn how inexpensive increased UM/UIM limits can be compared to the protection they provide.

For relatively modest premium increases, policyholders may be able to purchase hundreds of thousands of dollars of additional protection.

Think about the economics.

A driver may spend years paying for collision coverage without ever making a claim.

The same driver may never use roadside assistance.

Rental reimbursement may save a few hundred dollars after an accident.

But a properly structured UM/UIM policy can potentially provide tens or hundreds of thousands of dollars in benefits after a serious injury caused by an uninsured or underinsured motorist.

Few other coverages offer that level of protection relative to their cost.

The Coverage Must Be Used Properly

Like many valuable rights, UM/UIM coverage only delivers its full benefit when handled correctly.

A common mistake occurs when consumers focus exclusively on the at-fault driver's insurance and fail to properly evaluate their own UM/UIM claim.

Another mistake is accepting the liability limits from the at-fault driver's insurer without understanding how doing so may affect rights under their own policy.

Consumers must also recognize that a UM/UIM claim is a separate claim requiring its own development and documentation.

The damages presented to the UIM carrier should be supported by:

• Medical records
• Medical opinions
• Wage-loss documentation
• Expert evaluations when appropriate
• Evidence of future damages
• Evidence of pain and suffering

When properly prepared, the claim can unlock the very protection the policyholder has been paying for over the years.

The Coverage Protects You From Other People's Decisions

One of the strongest arguments for purchasing substantial UM/UIM limits is that it protects you from choices you cannot control.

You cannot control:

• Whether another driver buys insurance.
• Whether that driver purchases adequate limits.
• Whether that driver allows a policy to lapse.
• Whether that driver has personal assets to satisfy a judgment.

What you can control is your own coverage.

UM/UIM protection shifts the focus away from the financial irresponsibility of the at-fault driver and toward the protection you purchased for yourself and your family.

Peace of Mind for Responsible Drivers

Responsible drivers often do everything right.

They obey traffic laws.

They maintain insurance.

They pay premiums year after year.

Yet they can still become victims of someone else's poor decisions.



UM/UIM coverage is one of the few insurance products specifically designed to protect responsible people from irresponsible drivers.

That makes it fundamentally different from many other forms of coverage. It is not merely protection for your vehicle. It is protection for your financial security and future earning capacity.

The Bottom Line

Consumers often spend considerable time comparing premiums while paying little attention to their uninsured and underinsured motorist limits. That can be a costly mistake.

When a serious injury is caused by a driver with no insurance or inadequate insurance, UM/UIM coverage may become the largest source of available recovery. In many cases, it can mean the difference between adequate compensation and financial hardship.

For that reason, uninsured and underinsured motorist coverage may be the single biggest bargain in auto insurance. Purchased wisely and used properly, it protects you not from your own mistakes, but from the mistakes and financial irresponsibility of others—and that is a protection every driver eventually may need.