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UM Insurance: What It Is & Why You Need It

Updated: Jan 15, 2019

You have most likely heard of UM Insurance coverage, but may not know exactly what it is.  UM Insurance stands for uninsured motorist, but may also be referred to as UIM insurance, meaning underinsured motorist. Other commonly used phrases you may hear when discussing UM Insurance is UMBI, Uninsured Motorist Bodily Injury Insurance, and UMPD, Uninsured Motorist Property Damage Coverage. Below, we’ve broken down what exactly UM Insurance is and, most importantly, why you need it. 

Although it is against the law to drive a vehicle without car insurance, there are still tons of people that do so. This then puts other drivers that do have insurance at a greater risk, especially if they unfortunately get into an accident with the uninsured or underinsured. To protect drivers with car insurance from those without it, many states have required that UM coverage is included in their policy. By doing so, it ensures that they are covered medically if they experience injuries from an accident with an uninsured driver. If you are involved in an accident in #Georgia with an uninsured motorist, but you do NOT have UM Insurance on your plan, you would then be paying out-of-pocket for your damages and expenses. Like all insurance policy coverages, there are certain limits.

A driver is considered underinsured when they have liability insurance, but their limits are too low to cover all of the damages that they may cause in an accident. If you have UIM coverage on your insurance plan, the at-fault driver’s insurance company would pay first and then your coverage would make up the difference.

UMBI coverage is concerned with your medical expenses, lost wages, and other injury-related expenses. UMPD coverage helps with any damages to your vehicle because of the accident.

Having an insurance policy that has UM coverage will be the one thing that protects you if you get into an accident with an uninsured or underinsured motorist. It’s important to note that you always need to opt for “Add On” vs. “Reduced” when it comes to picking your UM coverage.

When you choose “Add On”, your UM coverage is “added on” to any at-fault liability coverage the other driver has. If you choose Reduced, your UM coverage is reduced by any at-fault liability coverage the other driver has. This option  provides less coverage in the event that you are involved in an accident, caused by another driver that doesn’t have enough insurance.

We know that all of this insurance talk can be confusing so we are here to answer any of your questions.

Overall, by having UM Insurance, Kaufman Law will be able to advocate for you more easily.


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