Southfield, MI personal injury attorney Johnny Hawkins talks about uninsured (UM) and under-insured (UIM) insurance. In discussions surrounding automobile insurance, individuals may have access to additional coverage provisions, specifically those pertaining to uninsured motorists (UM) and underinsured motorists (UIM). Uninsured motorist coverage comes into play when an individual sustains serious injuries in an auto accident, and the responsible third party lacks insurance coverage. If the at-fault party is uninsured, but the injured party possesses uninsured motorist coverage, they can approach their own insurance carrier. In this scenario, the injured party can file a claim against their policy, citing the lack of coverage from the at-fault party. The claim can be made for the amount or up to the maximum specified in the uninsured motorist coverage, depending on the extent of the injury.

Conversely, underinsured motorist coverage (UIM) addresses situations where the at-fault party possesses insurance coverage, but it is insufficient to adequately compensate the injured party. For instance, if the at-fault party has $50,000 in coverage, but the injured party has underinsured motorist coverage of $250,000, and the injury, such as a fractured hip, incurs pain and suffering amounting to $250,000, the injured party can first secure the available $50,000 from the at-fault party. Subsequently, they can pursue the remaining amount from their underinsured motorist coverage, which is the difference between the total coverage and the at-fault party’s coverage (i.e., $200, calculated as $250,000 minus $50,000). Both uninsured and underinsured motorist coverage provisions are valuable additions to an insurance policy.