Understanding UIM and UM Coverage: Why It’s Essential for Your Protection

Accidents can happen unexpectedly, and unfortunately, not every driver has enough insurance—or any at all—to cover the damage they may cause. In South Carolina, as in many states, underinsured motorist (UIM) and uninsured motorist (UM) coverage can protect you if you’re injured by a driver with insufficient or no insurance. Here’s why having this coverage is crucial.

What is Uninsured Motorist (UM) Coverage?

Uninsured motorist coverage protects you when an at-fault driver lacks insurance. Despite mandatory insurance laws, some drivers either don’t have coverage or let it lapse. Without UM coverage, you might have to cover medical bills, lost wages, and other expenses yourself.

• How It Works: If you’re in an accident with an uninsured driver, your UM coverage pays for the damages the other driver would have covered if they were insured, such as:
  • Medical expenses
  • Lost wages
  • Pain and suffering
  • Property damage (depending on your policy)

What is Underinsured Motorist (UIM) Coverage?

Underinsured motorist coverage applies when the at-fault driver has insurance, but it’s not enough to cover your total losses. Many drivers carry only the minimum liability insurance required by law, which may be insufficient in serious injury cases.

• How It Works: If the at-fault driver’s insurance doesn’t cover all your damages, your UIM coverage will cover the difference, up to your policy’s limits. For example, if your total damages are $100,000 but the at-fault driver’s insurance covers only $25,000, your UIM policy could cover the remaining $75,000, depending on your coverage limits.

Why You Need UM and UIM Coverage

Many drivers assume that others’ mandatory liability insurance will protect them in an accident. Unfortunately, that’s not always true. Here’s why UM and UIM coverage are essential:

1. Many Drivers are Uninsured or Underinsured: Even though insurance is legally required, many drivers either have no insurance or only minimal coverage, which may be insufficient for severe accidents. For example, in South Carolina, about 10% of drivers are uninsured, and many more are underinsured.
2. High Medical Costs: Serious accidents often require costly treatments, from surgeries to physical therapy. These expenses can quickly exceed the at-fault driver’s insurance limits, particularly if they only carry the state minimum.
3. Peace of Mind: UM and UIM coverage give you confidence that you’ll be protected financially if you’re involved in an accident with an uninsured or underinsured driver.

Choosing the Right Coverage Amount

When purchasing UM and UIM coverage, selecting adequate limits is crucial. In South Carolina, the minimum UM coverage is $25,000 per person and $50,000 per accident, but these limits may not be enough for a serious accident. Many attorneys recommend carrying higher limits for both UM and UIM coverage—typically equal to or greater than your liability limits—to better protect against substantial damages.

Stacking Coverage in South Carolina

South Carolina permits stacking of UM and UIM coverage, allowing you to combine the coverage from multiple vehicles on your policy for a larger payout in an accident. For instance, if you have $50,000 in UIM coverage on two vehicles, you could potentially stack the policies to access up to $100,000 in coverage if you’re seriously injured.

What to Do After an Accident with an Uninsured or Underinsured Driver

If you’re injured in an accident and the other driver has minimal or no insurance, here’s what to do:

1. Report the Accident: Contact the police to document the accident and file a report, making sure to obtain the at-fault driver’s insurance information.
2. Seek Medical Attention: Get treatment for your injuries immediately.
3. Notify Your Insurance Company: Inform your insurer that the at-fault driver is uninsured or underinsured, and initiate a claim under your UM/UIM policy.
4. Consult a Personal Injury Attorney: UM and UIM claims can be complex. A skilled personal injury attorney can help you navigate the claims process, maximize your recovery, and protect your rights.

Conclusion

Though no one expects to be in an accident, it’s essential to be prepared. Uninsured and underinsured motorist coverage can serve as a financial safeguard if an at-fault driver lacks sufficient insurance. If you’re uncertain about your coverage or have been in an accident with an uninsured or underinsured driver, consult a personal injury attorney to understand your rights and options.