What is Under-insured Motorist Coverage?

Original Equipment Manufacturer (OEM) coverage in Auto Insurance?


1. What types of benefits are included in Under-insured Motorist Coverage?

What is Under-insured Motorist Coverage?

Under-insured Motorist Coverage, also known as UIM, is a type of insurance coverage that helps cover the cost of damages suffered by you if you are injured in an accident caused by someone who has insufficient or inadequate insurance coverage.

Benefits of Under-insured Motorists Coverage

Having Under-insured Motorist Coverage is beneficial for 3 main reasons:

  1. Protection for you and named insured: UIM provides coverage for the named insured, their passengers and insured family members for auto accidents caused by an under-insured driver.
  2. Rescue from expenses: Without UIM coverage, the policyholder would have to pay the difference from their own pocket to cover the additional expense, which with UIM they will be automatically reimbursed.
  3. Comprehensive Coverage: It provides comprehensive coverage that includes medical expenses, physical damage, and pain and suffering damages.

Things to Consider

  • It is important to remember that UIM coverage is not a substitute for regular coverage; it is an added protection.
  • UIM coverage can vary greatly depending on the state you live in, so it is important to check with your insurance company to see what coverage is available in your area.
  • When considering a UIM policy, make sure to review the limits of coverage; higher limits will provide you with more protection if an accident should occur.

Under-insured Motorist Coverage can be a lifesaver if you ever find yourself in an accident caused by an under-insured driver, providing financial protection and peace of mind when you need it most.

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