Uninsured motorist (UM) and underinsured motorist (UIM) coverage pay when the other driver can’t. That sounds simple. It rarely is.
The short version
UM kicks in when the at-fault driver has no insurance. UIM kicks in when they have insurance, but not enough to cover the damage. Most clients assume their own policy won’t help them when the other driver is the problem. It often does.
Where agents trip up
The mistake isn’t explaining what UM/UIM covers. It’s explaining when stacking applies, and how that changes the payout. Stacking rules vary by state, and getting this wrong in front of a client is the kind of error that surfaces at the worst possible time: during a claim.
What to remember
- UM and UIM are separate coverages, often sold together but not identical.
- Stacking can multiply available limits across vehicles on a policy.
- The client’s own policy can pay out even when they didn’t cause the accident.
Today’s drip on UM/UIM walks through three real scenarios where this distinction changes the outcome for the client.