Insurance Defense and Coverage
Coverage Types
Underinsured motorist coverage applies when the at-fault driver carries insurance, but not enough to cover the claimant's damages. It responds to the shortfall rather than the entire loss.
States use two structures. In excess or add-on states, UIM limits sit on top of the tortfeasor's limits. In offset or difference-in-limits states, the tortfeasor's payment reduces the UIM limit available.
Alternative Names:
UIM Coverage, Underinsured Motorist Benefits
Why it Matters?
UIM is where serious injury claims land once the tortfeasor's limits are exhausted, and in commercial and trucking claims the UIM tower can be substantial. Consent-to-settle provisions are the recurring trap: settling with the tortfeasor without carrier consent can destroy subrogation rights and forfeit UIM coverage entirely.
Frequently Confused with
Related terms
Frequently asked questions
What is the difference between UM and UIM coverage?
Do I need carrier consent before settling with the at-fault driver?
