Uninsured motorist (UM) bodily injury coverage protects you if you're in an accident with an at-fault driver who doesn't carry liability insurance. What would be considered a UM situation? A hit-and-run driver would be considered an uninsured motorist, so UM coverage will pay medical costs. If you don’t have UM coverage, you do not receive any payments for medical costs for you or passengers in your vehicle. Under the terms of UM/UIM coverage, it must be proven that the other driver was at fault for the accident.

Underinsured motorist (UIM) bodily injury coverage steps in when you're in an accident with an at-fault driver whose liability limits are too low to cover the medical expenses of any injured person in your auto. The at-fault driver's insurance will typically pay for all damages up to his or her auto insurance liability limits, then your underinsured motorist coverage may cover the excess amount up to the limits you have selected. You may ask what the benefits are to having UIM coverage? The bodily injury covers medical bills for you and the people in your car and may cover lost wages. The at-fault drivers insurance would pay first and your UIM would make up the difference in costs, up to your limits of liability.

The biggest reason why so many people do not carry UM/UIM coverage is the high cost of insurance. However, UM/UIM is only a fraction of the cost of vehicle insurance. A policy in Montana does not require UM/UIM, so it is offered optionally, but it is for your benefit to have both of these coverages, especially since there are over 29 million uninsured drivers in the US.

This optional coverage is for you!

Article By: Suzanne Trower, Personal Line Customer Service Rep at Darnielle Insurance Agency