UM vs UIM Insurance for Auto Accidents – What is the difference and which one should you use? If you have been involved in an auto accident that was not your fault and the at-fault driver did not have auto insurance or did not have enough auto insurance, read on.
UM vs UIM Insurance for Auto Accidents
Uninsured Motorist Coverage (UM) is coverage you have on your own auto insurance policy to protect yourself from an at-fault driver who has no auto insurance coverage. How can you seek recovery from an at-fault driver when there is no liability insurance? You may attempt to file a claim against the at-fault driver’s personal assets, if the individual has any. However, what if the driver who caused your accident is living from paycheck to paycheck and does not have any substantial assets that you can recover from? That is when you can file an uninsured motorist claim with your auto insurance company to recover for injuries, loss wages, and reimbursement for medical expenses. You can also file an UM claim when an at-fault driver cannot be located such as in Hit-and-Run cases. Uninsured Motorist coverage is mandatory in North Carolina. It is important to note that for a person to recover under an uninsured motorist claim, he/she must prove they are legally entitled to recover damages from the at-fault driver who caused the automobile accident.
Underinsured Motorist Coverage (UIM) is auto insurance coverage you have on your own policy when an at-fault driver does not have enough liability insurance to cover your bodily claim resulting from the car accident. This type of automobile coverage is important when the amount for your medical expenses/pain/suffering/damages exceeds the amount of liability insurance that is available. For instance, suppose you were injured in a car accident and suffered severe injuries that required an extensive amount of medical treatment causing you to be out of work for a long period of time. Your medical bills totaled over $40,000 and you had over $5,000 in loss wages. The at-fault driver’s liability policy limits were only $30,000. The at-fault driver’s insurance company has tendered its policy limits to you, but the amount is not enough for you to receive the full value of your bodily injury clam. That’s when you would need to make an UIM claim under your own auto insurance policy. Unlike, UM coverage, UIM coverage is not mandatory. You are not required to have this type of coverage; however, it is certainly worth considering.
If you are confused about UM vs UIM Insurance for auto accidents after being injured in a car accident, a Raleigh NC Auto Accident Attorney can advise you on whether your case is the right kind of case to make such a claim. You do not have to handle these confusing insurance matters on your own. The Bishop Law Firm represents car accident victims in Raleigh, Durham, Rocky Mount, Wilson, Smithfield, Louisburg, Chapel Hill, Roanoke Rapids and surrounding areas in North Carolina. Give us a call today at (919) 615-3095 to help you resolve your auto accident insurance claims.