What Is Underinsured Motorist (UIM) Coverage?

Getting into a car accident is stressful. It becomes even more stressful if the other driver is at fault but doesn’t have enough insurance to pay for your injuries or damage. That’s where underinsured motorist coverage (UIM) can help.

In this blog, you’ll learn what underinsured motorist coverage is, how it works, why it matters, when it pays, how it’s different from other types of coverage, and how to decide whether you need it.

What Underinsured Motorist Coverage Means

Underinsured motorist coverage is part of your own auto insurance policy. It helps pay for your accident-related costs like medical bills when the at-fault driver’s insurance isn’t enough to cover your damages. Thus, underinsured motorist coverage is designed to help cover the remaining costs after the at-fault driver’s insurance pays its maximum amount.

This coverage is not included by default in every insurance policy. In most cases, drivers must choose to add underinsured motorist coverage when buying or renewing their auto insurance.

Why Underinsured Motorist Coverage is Important

Here’s why UIM coverage can be important:

• Many drivers have minimal insurance limits. Even when the other driver is clearly at fault, their policy may not pay enough to cover your bills.
  
• Medical costs and lost income add up fast. Surgeries, hospital stays, therapy, and time off work can quickly exceed the at-fault driver’s insurance limits.
  
• You shouldn’t be stuck paying for someone else’s mistake. UIM helps fill in the gap between what the at-fault driver has and what you actually need for recovery.

No one plans for a serious crash. But UIM can make a real difference when you’re dealing with injuries and bills, especially after a bad accident.

What Underinsured Motorist Coverage Pays For

Underinsured motorist coverage may help cover a wide range of losses when the at-fault driver’s insurance is not enough. Depending on your policy, this can include:

Medical care and treatment costs

This may cover emergency care, hospital stays, doctor visits, surgery, medication, physical therapy, and future treatment related to the crash.

Lost income and reduced earning ability

If your injuries caused you to miss work or affected your ability to earn money in the future, underinsured motorist coverage may help account for those losses.

Pain and suffering

This includes physical pain, emotional distress, and how the injuries affect your day-to-day life.

Reduced quality of life

Serious injuries can limit activities you once enjoyed or change how you live. These long-term effects may also be considered.

Every policy is different, so what’s covered and how much may be paid depends on the limits and terms of your underinsured motorist coverage.

How UIM Is Different From Other Coverages

To understand UIM better, it helps to compare it to similar insurance options:

UIM vs. Liability

• Liability is the insurance you carry to protect other people. If you cause an accident, your liability coverage is used to pay for the other person’s injuries and property damage. It does not pay for your own medical bills or losses..
  
• UIM is designed to protect you. It applies when another driver causes a crash but does not have enough insurance to fully cover your injuries and other losses. 

UIM vs. Uninsured Motorist Coverage (UM)

These two are often offered together, but they are not the same:

• Uninsured Motorist (UM) coverage applies when the at-fault driver has no insurance at all.
  
• Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but not enough.

Some policies combine them into a single “UM/UIM” option, but they serve different crash situations.

UIM vs. Personal Injury Protection (PIP)

• PIP pays your medical bills and lost income regardless of who caused the crash, but it typically has lower limits.
  
• UIM only applies when the other driver is at fault and does not have sufficient insurance.

How and When Underinsured Motorist Coverage Applies

Underinsured motorist coverage applies after a crash when the at-fault driver’s insurance has paid everything it can, but your losses are still higher than their policy limits. This situation is common in serious accidents where medical bills, lost income, and recovery costs add up quickly.

For example, if a driver causes a crash and you have $50,000 in medical expenses, but their insurance only pays $25,000, underinsured motorist coverage may help cover the remaining $25,000, up to the limits of your own policy.

This coverage does not replace the other driver’s insurance. Instead, it helps fill the gap after their policy has been exhausted.

What’s usually required for a UIM claim

To use underinsured motorist coverage, you generally must:

• Show that the other driver caused the accident
  
• Prove that your damages exceed what their insurance paid
  
• Provide documentation of your losses

This often includes supporting documents such as medical records. Your insurance company will review this information before deciding how much to pay under your UIM coverage.

How Much Underinsured Motorist Coverage You Should Buy

When your insurer offers UIM coverage, they usually offer it in amounts similar to liability coverage, for example, $25,000, $50,000, $100,000, or higher.

How much should you buy? Here are a few tips:

Think about your health and income

If you have a family to support or a job that you rely on for income, choosing higher limits can give you peace of mind.

Consider medical costs in your area

Medical care and rehabilitation can be expensive. Even a moderate crash can exhaust low limits quickly.

Balance cost vs. risk

UIM coverage usually adds a modest amount to your premium but can provide a big safety net.

There is no one-size-fits-all answer, but many insurance experts recommend carrying UIM limits that match or exceed your liability limits if you can afford it.

How to Add or Increase UIM Coverage

If you already have a policy and want underinsured motorist coverage, you can usually add it when you renew or update your policy.

Here’s what you can do:

1. Review your current policy to see if you already have UIM and what your limits are.
   
2. Talk to your insurance agent about adding UIM if it’s missing.
   
3. Consider increasing your limits if your current coverage may not be enough.
   
4. Ask for written confirmation of the change so you have proof of coverage.

It’s important to reject UIM in writing (in states where that is allowed) if you truly do not want it. Otherwise, not rejecting it in writing can lead to surprises after a crash.

Common Mistakes With Underinsured Motorist Coverage

Even small missteps can cause problems when you try to use underinsured motorist coverage. The most common issues include:

1. Assuming UIM coverage is included automatically
   Many drivers don’t realize UIM is optional and must be chosen. If you didn’t select it, you may not have this protection after a crash.
   
2. Not understanding your coverage limits
   Having UIM coverage doesn’t always mean having enough. Low limits may not cover serious injuries or long-term recovery.
   
3. Rejecting UIM without knowing the consequences
   Some people decline UIM to lower premiums, without realizing it may be their only backup if another driver’s insurance falls short.
   
4. Settling too quickly with the at-fault driver’s insurer
   Accepting a settlement before knowing the full cost of your injuries can limit or block your ability to use UIM coverage later.
   
5. Failing to document injuries and expenses
   Medical records, bills, and proof of lost income are key to a UIM claim. Missing documentation can weaken your case.

Do You Need an Underinsured Motorist Lawyer for a UIM Claim?

Not every underinsured motorist claim needs a lawyer. That said, asking for legal help can really make a difference, especially if your insurance company gives you a very low offer. 

You might want a lawyer if:

• Fault is in question
• The insurer argues that UIM coverage doesn’t apply
• The policy wording is confusing or hard to follow
• Their first offer doesn’t come close to covering the full toll of your injuries

In those cases, a UIM lawyer can look over your policy, calculate the real value of your losses, and gather the evidence you need to fight back against unfair denials or low-ball settlements.

Underinsured Motorist Coverage in Texas

Underinsured motorist coverage is especially important for drivers in Texas, including El Paso County, where many drivers carry only minimum insurance limits.

Texas law requires auto insurers to offer underinsured motorist coverage when you buy or renew a policy. You are not required to carry it, but if you choose not to, you must reject it in writing. Without a written rejection, the coverage may still be treated as part of your policy.

If you were injured in a crash in the El Paso area and have questions about UIM coverage, the Law Offices of Michael J. Gopin, PLLC can help review your policy and explain what options may be available.

Have Questions About Underinsured Motorist Coverage? Get Help Today

Underinsured motorist coverage is often overlooked, but it can play a key role after a serious accident. When another driver causes a crash and their insurance isn’t enough to cover your losses, UIM coverage may help give you a way forward.

While UIM coverage doesn’t guarantee full recovery, it can provide important support when medical bills, missed work, or long-term injuries are involved. Knowing what your policy includes before or after a crash can make a big difference.

If you were injured in an accident and aren’t sure how your underinsured motorist coverage works, the Law Offices of Michael J. Gopin, PLLC can help. Our team can review your policy, explain your options in plain language, and help you decide what steps make sense next.

Contact the Law Offices of Michael J. Gopin, PLLC today for a free consultation. Getting clear answers now can help reduce stress and protect your recovery later.

Michael J. Gopin

Michael J. Gopin has practiced law in El Paso since 1987. Even after more than 30 years, he still remembers his first jury case. It was two weeks after receiving his license, when he represented a person whose life had been forever changed after being blinded in a work-related incident...