What is UM/UIM Coverage?

by: Prince, Glover & Hayes Monday, August 17th, 2009

Uninsured motorist (UM) coverage applies when you are involved in a wreck with an uninsured driver. Even though the law requires all drivers to have a minimum of $25,000 in liability coverage, about 1/3 of Alabama’s drivers disobey this law. Underinsured (UIM) motorist applies when your injuries and other damages are more than the at-fault party’s liability limits. For instance, a three-day hospital stay following an accident could easily cost $35,000. If the at-fault driver, only has $25,000 in coverage, guess who gets stuck with the rest of the bill? You do. That is where your UIM coverage can kick in.

It is very important that everyone has both UM and UIM coverage. We never know when tragedy can strike and this may be the only thing that can protect your family from financial ruin. Please contact your insurance agent today and ask them about this coverage!

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2 Responses to “What is UM/UIM Coverage?”

Tom Guyton Said:

I had $100,000/$300,000 Liability and UIM with my auto policy. I wanted to increase my UIM to $250,000/$500,000. I was told I could not do that unless I increased my liability to $250,000/ $500,000 as well. Is this legal in Alabama?

Comment made on December 16th, 2009 at 4:42 pm
Prince Glover Said:

The law in Alabama says that UIM coverage cannot be more than liability limits, so this information would be correct. Please let us know if you have any other questions.

Comment made on December 16th, 2009 at 5:12 pm
 

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