What is UIM Insurance? UIM insurance is short for Uninsured / Underinsured Motorist Insurance. Like the name suggests, this insurance applies in situations where you have been injured in an accident by a driver who either does not have insurance, or does not have enough insurance to properly compensate you for your injuries.
How does UIM Insurance Work? If you have been injured by someone who does not have any insurance, UIM insurance will step in to act as if it was their insurance, providing coverage for the accident up to your pre-selected limits and handling your injury claim. If you are injured by someone who does have insurance, but it is less than your UIM policy limits, you must first recover their entire policy from them, and then you can pursue a claim with your own UIM insurance for up to your policy limits.
Why is it Important? Despite it being against the law and carrying the risk of a year-long license suspension, many people in California drive without valid auto insurance. If you are involved in an accident with someone who does not have insurance, UIM Insurance is the only way to protect yourself and ensure that you will be properly compensated for your injuries.
Will Filing a Claim with My UIM Insurance Increase My Monthly Auto Insurance Premium? No. Your insurance company understands that you are already paying the monthly premium so that this insurance will apply in the unfortunate event you are injured by an uninsured motorist. Filing a claim and receiving compensation will NOT increase your monthly premium.
How Much Should My UIM Coverage Limits Be? The difference between $100,000 in coverage and $250,000 in coverage is just a couple of dollars a month. However, the difference that can make when you have been injured following a car accident can be worlds apart. Therefore, we recommend a minimum UIM coverage of $250,000 per person with ideal coverage being $1,000,000.