What Is Underinsured Motorist Coverage?

Underinsured motorist (UIM) coverage is an essential part of an auto insurance policy that can help provide financial protection if you’re in an accident with an at-fault driver who doesn’t have enough insurance to cover the damages.

Underinsured motorist coverage kicks in when the at-fault driver’s liability insurance is insufficient to cover the costs of your injuries or damages. For example, if the other driver’s policy has a limit of $25,000 and your medical bills total $50,000, their insurance would cover the first $25,000, and your UIM coverage would help pay the remaining $25,000.

How UIM Coverage Works

In Texas, UIM coverage can help protect you if you’re in an accident caused by a driver whose insurance isn’t sufficient to cover all your expenses. This coverage may kick in to pay for medical bills, lost wages and property damage that exceed the at-fault driver’s policy limits. This can be crucial in covering significant costs that the at-fault driver’s insurance can’t fully address.

Why You Need UIM Coverage

Even though most states require drivers to carry liability insurance or prove financial responsibility for accidents they may cause, the minimum required limits are often not enough to cover severe accidents. UIM coverage helps ensure you’re not left financially vulnerable if a driver with inadequate insurance hits you.

How to Add UIM Coverage to Your Policy

Adding UIM coverage to your auto insurance policy is usually straightforward.

Check if you already have UIM coverage and understand your current limits. Speak with your insurance agent to discuss your options and determine the appropriate coverage for your needs. Add or increase UIM coverage as needed to ensure adequate protection.

Learn More

Contact AMCO Gulf LLC in Houston, TX, for a personalized auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.