“UM/UIM” may be one of the most important abbreviations you should understand on your car insurance policy.
UM stands for uninsured motorist, and nearly 1 in 7 drivers nationwide is uninsured despite laws in 49 states (not New Hampshire) requiring drivers to have insurance, according to the Insurance Research Council, a nonprofit supported by insurers.
UIM is for underinsured motorist. Even states that require car insurance often mandate liability limits of $20,000 per person or $40,000 per accident.
If you have an accident with someone who is uninsured or underinsured and is ultimately at fault, UM and UIM provides coverage for your damages and injuries. UM/UIM is included in auto insurance policies in Illinois.
With the ways health costs are soaring, $20,000 may not go very far depending on one’s injuries. So if you are injured by a reckless driver, even one carrying the legal minimum, it might not be enough to fully compensate you for your injuries.
That’s where UM/UIM comes into play. As the injured party, you can make a claim on your own insurance policy for those damages which rightly should have been paid by the other driver’s own insurance policy.
Axcess Insurance Services recommends minimum liability limits for UM/UIM to be $250,000 per person and $500,000 per accident. It’s actually a very affordable measure of peace of mind. Take a look at your car insurance policy right now to see where you stand, and let us know if we here at Axcess can help.