Full Coverage - Uninsured / Underinsured Motorist

Underinsured coverage, also known as UM/UIM, provides coverage if an at-fault party either does not have insurance, or does not have enough insurance. In effect, your insurance company pays your medical bills, then would subjugate from the at fault party. This coverage is often over looked and very important. In Colorado for example, it was estimated in 2007 that 24% of drivers did not carry the state minimum liability limits required by law. That is about 1 out of every 4 drivers. Unfortunately, this number goes up significantly during recessions. In some area's it is estimated that 1 out of every 3 drivers don;t carry insurance. Usually your limits match your liability limits. Some insurance companies do offer um/uim in an umbrella policy.

In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws.