Underinsured Motorist Coverage is a type of insurance that is optional on your automobile insurance policy and is typically referred to as “UIM Coverage” in the legal field . This is not to be confused with “UM Coverage” or Uninsured Motorist Coverage which is mandated by SC State Law. Everyone that has their own automobile insurance policy automatically has Uninsured Motorist Coverage. On the other hand, you have the choice whether or not to have Underinsured Motorist Coverage (UIM). The difference in these two types of coverage is simple.
Uninsured Motorist Coverage is insurance coverage for you when you are hit by another vehicle that has no active insurance policy at all. In other words, your UM policy kicks in when the other party that hit you does not have coverage. UM Coverage is required by state law and for good reason. There are many folks on the road everyday in SC that either do not have coverage or have had coverage recently lapse.
Underinsured Motorist Coverage is a coverage that kicks in when the other party that hit you has coverage, but the amount of coverage they have is inadequate to cover the damages you have sustained in the automobile collision. Here at Gaston, Marion, and Stubbs, we believe Underinsured Motorist Coverage is an absolute must. We’ve seen plenty of clients get hit by someone with the state mandatory minimum limits of $25,000/$50,000/$25,000, and their hospital bills alone exceed the amount of coverage that is available from the other person’s automobile insurance coverage. We all know medical care is expensive—especially if a surgery is necessary. It is not rare for our clients to have well over $25,000 in medical expenses. Newer vehicles these days are often worth over $25,000 as well, and it is very possible that you could total a $50,000 vehicle in a wreck with someone that only has $25,000 in property damage insurance coverage. No one enjoys the process of being involved in a motor vehicle collision, but that displeasure is only multiplied when you have a financial tragedy that accompanies the pain and inconvenience of the injury related to the wreck. It is important that you make a wise investment in obtaining a generous amount of Underinsured Motorist Coverage to cover you if you ever encounter a negligent driver with inadequate insurance coverage.
We like to educate folks as much as possible about this issue as we have seen firsthand how the absence of Underinsured Motorist Coverage (UIM) or a generous amount of UIM can be a painful discovery to make after tragedy strikes. We hope this information helps inform you when you are deciding how to choose what insurance policy best fits you and your family. Feel free to give us a call at (803) 789-2114 if you have any questions or would like to discuss your legal case.